Blogs & Articles

Section Title Icons

December 18, 2019

11 mistakes first time home buyers should avoid

What’s the first option for an investment you would look at if you don’t already own a home? A good percentage of Keralites would consider investing in Flats and Apartments in Kochi, whether it is for them to stay or as an investment. Real estate in Kerala, especially Kochi, is booming significantly, despite the so-called dull economic situations within the country and the Middle East. If you are among those looking to invest in an apartment property in Kochi, make sure you don’t commit these common mistakes:

Too Exorbitant an Investment

Bit only as much you can afford! This applies to the investment you plan to make on your home too. Malayali’s are well-known for their exorbitant investments in their house, even if they can’t afford it. They take a bank loan, private credit and even pawn their gold to own a house far more luxurious than they can afford. That’s a major mistake to avoid when you are planning to invest in a property.

Unsure of whether to invest or to stay

For most of the first-time home buyers, it’s a place they would probably stay for the next decade or so. But for some others who prefer to keep their options open, it’s just an investment with good ROI. Buying a property for staying and investing are different things. Its best to sort out first whether you plan to stay in the property you’re looking to purchase in which case, you have to also consider your family’s requirements too. If it’s only about investment, don’t forget the probable resale value.

Missing out on a Loan

Home loans come with a handful of benefits. Before you get the loan sanctioned, the bank will verify the authenticity of the documents submitted. Typically, checking the eligibility for a loan with a copy of the property you intend to buy will get the documents vetted legally by the bank. Further, you can also enjoy some tax benefits on the EMIs. You can probably use a part of the money you could have invested in the house otherwise, to go on a vacation instead.

Not considering the locality

Location is a significant factor when buying apartments in Kochi. The neighbourhood plays an important role in determining the return on investment down the lane. Kochi is fast-growing which makes it one of the best places in India for property investments.

Deciding on-the-spot

No matter how good you are with your convictions, never decide on purchasing an apartment on-the-spot. Many builders lure their prospects with spot-booking offers which often ends up in disastrous decisions.

Deciding without a physical inspection

You may be busy, staying abroad or away from the property that you intend to purchase. But make sure that you physically inspect the property before deciding on it.

Making an emotional decision

Among the Keralites, purchasing a home, is often, an emotional decision! Be practical about the pros and cons of your decision. Take time to discuss with your family and other experienced people around you before making an informed decision.

Overlooking the Builder Reputation

Builder’s reputation is of the utmost importance when you are considering the Flats in Kakkanad to purchase or invest. The quality of construction and resale value depend a lot on the builder’s reputation.

Not getting the documents vetted legally

If you are not an expert in legal matters and don’t understand the nitty-gritty of property documents, getting these documents vetted by a legal expert who specializes in property dealings is advised. With the issues like the Maradu encroachment case happening across the state, it is always best to get a written legal opinion on the property documents to be on a safer side.

Overlooking the additional costs

Remember, when you are purchasing an apartment, your investment does not stop with the purchase. When it comes to apartments, there are one-off expenses such as repairs and renovations and recurring expenses such as monthly maintenance and other such costs for the upkeep and enhancement of the property also to be considered.

Falling for unreal offers

If your builder or their marketers are giving you unreal offers for purchasing the apartment, please stay away from them! Understand that everything involves a cost and there’s nothing called free lunch when it comes to business. If they’re offering exorbitant discounts or free stuff, beware of some unwanted surprises down the lane.

Considering the amount of investment and effort that goes into purchasing an apartment or flat in Kochi, the best option is to go for reputed builders such as Classic Homes, with proven expertise and experience. Such builders understand the customers’ emotions and value their money. They always come up with quality constructions.