What to look for in your first home

Apply Now

The ‘firsts’ in life are always filled with excitement and surprises. Your first lesson in school. Your first day at college. Your first job. Your first home!

When it comes to buying a home, you always think of purchasing one that gives you a good vibe and is affordable. And this is no easy task! There are numerous factors like location, price, future needs, etc. which need to be considered before you finalise on your dream home. So, here’s a list of things you need to think through before you go on a house-hunting spree.

Location

This is probably where the majority of people go wrong. In a bid to buy a new house at an affordable price, people forget to consider the location and its proximity to other places. It is quite puzzling when it comes to choosing between a small house in your favourite locality and a bigger home at a lower price in another part of the city. It is important to weigh factors like — is your new home closer to your workplace? If not, are you ready to travel far? Are you the one who wishes to stay away from the hustle-bustle of the city, or are you someone who likes to live amidst the chaos that the city life brings in?

Facilities

Amenities are another key factor to be taken into consideration before planning on purchasing a new house. For those of you who are working, the distance to your office and the mode of transportation you opt for are important. If your office is just five minutes away, are you ready to walk to the office every day? If it is far off, are you ready to invest time and money on travelling? If you don’t want to go the distance to buy groceries or medicines, then it’s better to find a house in an area that’s just a stone's throw away from all the shops, market, etc. For those of you with kids, a reputable school in the vicinity may be your prime focus. Close proximity to good schools is crucial, as well as an added bonus.

Price

Whether you say it out loud or not, but the price factor would probably be the make or break point for most when it comes to buying a new home. Everyone strives to acquire a house that’s perfect for them, but most of all, the one that can be afforded. But you will also need to take into account the long-term picture, especially if you are looking at your new purchase as an investment. Today, you'll buy a house as per the market value, but you will also need to consider its appreciation over time, which eventually provides you with added value. On the flip side, if the market conditions change, and you need to sell the house, you should be able to get a good deal for your house, or at least retrieve the money you invested. So to buy a house at a lower price which would not give you decent returns may prove costlier than buying a house which is a tad bit expensive but has good potential for returns. And as far as affordability is concerned, there are home loans to assist you make your dream come true. Home loans save you on your bulk spends and give you an extra monetary impetus to buy a better house. The best part about home loans is that they can be tailored to your needs.

Future Needs

Before you zero in on your dream home, do think it through. Think of your future needs and think of how you will accommodate them in the home you are planning to buy. You may be single today, and a single bedroom home or even a studio apartment may look ideal. But what if marriage is on the cards soon? Is there a possibility of having an extended room? Or if you are married and are planning on having a baby soon, does your house have enough space for them to grow and play? Does your home have a convenient parking space for your current or future vehicle? Are the amenities being provided suitable for your tomorrow's needs? It’s better if you first contemplate on how your first home would fit into your future plans, and then go about buying it.

Buying a new home might seem to be a Herculean task, but it need not always be one. If you’re aware of the things you need to consider before you seal the deal, then there’s no greater joy than owning your dream house.
If you liked what you read, check out more articles on home buying.

What to look for in your first home

Disclaimer: “This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.”