So, you have finally decided to purchase a home, and your family members are completely excited about it. Without any doubt, buying a home is a huge investment, and hence it should be done very carefully. There are many factors that matter in this regard. If you do not pay attention to the factors, you may end up spending your hard earned money on a bad property.
In addition, it is also important to ensure that you are not paying more than what the property is worth for. In this context, there are certain tips you can keep in mind. These tips can help you save money when purchasing a home. So, let us take a look below.
Few useful house buying tips you can follow
- Always negotiate- When buying a home, you should not shy away from bargaining about the price. Once you have finalized your option, fix a meeting with the developer and negotiate a deal with them. In case the developer is not ready to shell out cash discount, you can ask for house furnishing items or home appliances as gifts. However, do not fall for items that are hardly going to save you money in the days to come. For example, a free smartphone is not going to lower down your home furnishing expenses. However, an air conditioner, modular kitchen, etc. can definitely work here.
- Contact multiple lenders– Most of us avail loan for purchasing a home; at least half of the amount is financed. So, when it comes to applying for a house loan, it is recommended that you contact at least three different financial companies or banks. The interest rates, loan application fees, and other charges vary from bank to bank. So, when you have house loan quotes from multiple banks, it will become easier for you to negotiate with them. In this way, you will end up saving some good amount of money in the long run.
- Get the property registered in your mother’s name of wife’s name– Yes, there are many places where the house registration charges for women are somewhat lower in comparison to men. Hence, if you are a married person, it would be better if you purchase the house on your wife’s name. In this way, even a difference of 1 percent in the stamp duty can mean a lot.
- Get 20 percent down payment ready- A lot of people prefer paying up to 15 percent as the down payment amount. But, it is also important to mention that if you pay less than 20 percent as down payment, you will have to cover the amount of PMI (private mortgage insurance) as well. In this way, you will end up paying more for the property.
- Improve your credit score- There is no doubt that your credit score matters a lot in determining the ROI (rate of interest) at which the loan will be sanctioned. When your credit score is good enough, the lender will charge lower ROI from you. So, if your credit card still has some due amount, get it cleared as early as possible. It would be better if your credit card dues remain less than 15 percent of its credit limit amount.
- Look for house that needs renovation- When people look for a residential property to buy, most of them have huge expectations from the aesthetic point of view. But, it is quite obvious that the owner of a very beautiful house will not offer huge discount on the price quoted by him/her. After all, there are many more customers waiting for his/her property. So, what you can do is look for the properties that require a little bit of renovation here and there.
The price of renovation depends on how smartly it is done. So, by asking for a huge discount on the property, you can save a lot of money, and use just half of it in the renovation part.
- Contact the builder directly- In the real estate market, you will come across plenty of brokers. But, when you contact a broker, you end up wasting a lot of money. Real estate brokers add their commission to the builder’s price, and then place the quote to the customers. But, if you get in touch with the builders and skip the broker’s part, you will surely get a better price for the same property.
- Licensed builders- Before purchasing a new home in an apartment or multi-storey building, you must verify each and everything related to the builder and the property too. You must ensure the builder has a valid license, and the property is a bank-approved one.
So, those were some of the useful tips you can keep in mind while purchasing home from the Gold Coast builders. These tips will surely help you save a lot of money in the end.