5 Questions about home buying.👀

WHY 1. Do you need a home now? Why? - This is an oft debated question - "Rent or Buy". Its about having your own asset vs having the flexibility + opportunity to invest in other instruments. Sometimes, it is driven by societal pressure of owning "your" home, even though technically its the Bank's for a good 15-30 years( others have paid theirs off in less than 10, but that is another story). If its for investment purposes (why not invest in shares ) or self-use and so on... Have a really good think about this.

HOW MUCH $$? 2. If you did decide to buy a home, always know your budget first - get a broker to do an assessment (preferably me). This budget will give you a realistic understanding on what home (3bdrm, 4bdrm plus, unit etc) you can afford and in which part of the city or town. Using a broker( again me) will allow you to consider options and make you aware of any special deals in the lending space and what type of government support and incentives are out there( I know them all)! It should never be the maximum of what you can borrow. Leave some space for the future.

LOCATION LOCATION.... (thank you for the cliche' real estate agent!) 3. Don't buy a home closer to your workplace - just because as in life, nothing is permanent, your job too is not. So, instead of keeping your current workplace as the basis, use the overall factors of a city or town , i.e. proximity to social infrastructure, access to public transport, amenities like public transport, hospitals, schools, sports and shops etc. Some like the city-life, some want the peace and calm. Everything comes at a price - tailor your requirement accordingly.

RESEARCH 4. Do your research about the top 4-5 options that meet "your" criteria. If buying a new home, then look at the past/current projects of these builders, talk to their current customers, go to their social media pages (beyond the paid tweets/posts) to find the truth. Use your own head plus input and advice from your reputable real estate agent and then make a decision.

Real(i)ty Bites 5. Be ready for the reality - Real estate is a capital intensive and a complex industry. This is the single most important financial decision most people will make in their life! There are many dependencies on authorities for approvals, contractors for construction and overall the morality of builders to "deliver" what they promise. Ensure there is insurance to cover for uncompleted works on new builds. Warranties in place on brand new construction and so on. Be ready for hiccups on the way and be prepared mentally and financially. P.S. While deciding on the budget, save some money for things like furnishings, rates, insurances, things you need in a new home (appliances etc). Sometimes these go unaccounted and then we scramble for funds at the last moment or worse - compromise.