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Buying a new home? Read THIS first

Last updated on: February 7, 2013 18:38 IST

Buying a new home? Read THIS first

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Choose from these two options and save a great deal of money and effort.

Buying a home is the most exciting and at the same time most tiresome task for people. The excitement of owning a home is generally overshadowed by the tedious task of going through enormous amount of details and procedures involved in buying a home.

Though the process might be tedious but going through the necessary process for owning a house is a necessity. Any negligence on the procedure can cost inversely to the owner in the future. So, diligence is required while purchasing home.

Given below are few options that are available to home buyers and points looking at which buyers can decide which buying option suits their requirement the most.

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1. Buying a ready to move home

A new trend is observed in home buying since the last couple of years.

A large number of home buyers are slowly shifting towards 'ready to move' homes than buy an under construction home and wait for a couple of years to get the possession.

The reason is very obvious i.e. immediate possession of the home.


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Advantages of buying a ready to move home

Immediate possession

Customers do not have to wait for the completion of the construction to move to their new home as it is ready and the buyers just have to pay the money, sign necessary documents, and get all titles and necessary documents before shifting to a new house.

Either EMI or rent but not both

In the case of ready to move home, buyers just have to pay the EMI while they can easily move in to their new house. In case of buying under construction home, buyers have to pay the EMI and live in rented apartment till they get the possession of the house. This way it saves a huge amount of money.

Get what is shown

In the ready to move home, buyers get what they see. As, the housing complex is ready and there are people living there, so getting feedback about the area, amenities, maintenance, utility centres, locality and shopping centres become easy.


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Drawbacks of buying a ready to move home

The biggest drawback of ready to move home is that buyers will have no idea of what went on while building the house, i.e. in terms of what kind of materials used, foundation etc. There are great possibilities of usage of low grade materials for building the home.

And, the price of ready to move home is about 25 per cent higher than the price of under-construction home.

Important points to be noted while buying a ready to move home

Ready to move homes are generally more expensive but it might not be true in all the cases. Buyers should thoroughly do the research about the property; speak with a few people in the locality to find out the fair value of the home and then move forward for buying the property.


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Group buying

The last few months have seen many new companies encouraging home buyers to form a group to buy any property as it will increase the bargaining power. On getting few people willing to buy property, the group buying companies will negotiate with builders on their behalf and get extra discounts on the home.

Mainly these companies act as a mediator between the builders and home buyers. Giving extra discounts is not a big problem for builders as they save big amount of money in advertisement and sales force.


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The advantage of group buying

Group buying empowers home buyers to negotiate the price of the property better with the builder. The group home buyers usually get a better discount than what they can get individually.

Drawbacks of group buying

In group buying process, an individual buyer doesn't make much difference and hence group's interest takes priority over individual's choice.

The down payment usually is higher in group buying.


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Important points to be noted while group buying

The buyers should study the documents carefully before going for group buying. Buyers should not assume that some one among the group might have read all the documents carefully.

Group buying of homes take time and hence buyers should be patient about it. The group buying company has to build the group willing to buy homes, and negotiate the price with the builder for additional discounts.

These activities take time so keeping patience can be quite beneficial.


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What should buyers choose?

Buyers' choice should only depend upon their financial condition, timing, and location of the property. Choice of location is the most important factor while buying any real estate.

So, choose the options available for home diligently.


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