Having a lot of alternatives can be quite interesting and mostly, very helpful. However, a lot of options can create tonnes of problems as well. More and more choices would mean more of confusions.
Such is the matter with property market now. For a person who seeks to buy a house, there are just tonnes of ways to buy a house and alongside there are just a lot of advices showering. People therefore often search for the best way to buy a house and important tips for those in search of a house. What to trust and where to look for?
So here are some major ways to buy a house and important tips to keep in mind while searching for the best way to buy a house.
Some of the best ways to buy a house
When considering the options to buy a house, know that there can be many. Some main ones are discussed below.
Building a house:
Though it doesn’t fully fit in, getting a house constructed on the land that a person already owns is one of the most economic ways to buy a house. Much of the exchange margins and other fee gets eliminated when a person is getting a house constructed instead of buying a pre-existing house. So buy a plot, and get the home built according to the expectations, and save tonnes of money. Sounds good, right?
Shared ownership house:
Though it is not existing in all regions, this is one great scheme. In this, a tenant (any first time home buyer) is enabled to buy a small portion of a house and is supposed to pay the rent of the remaining portion of the house. The person can later, as convenient, buy more share of the house to extend his share in the house or to wholly own the house.
In the states where such schemes exist, it is mostly in favour of the first time house buyers. Thus it can be a great way of a person with no personal property to get into the property ladder and build some assets. Certainly, it is one best way to buy a house.
For investment purposes or for temporary residing purposes, one may consider to buy a house on joint ownership basis. Now, what’s joint ownership and how is it different from shared ownership? In joint ownership, an individual and some other people who are trusted, pool in the amount in equal proportions to buy a property. No rent has to be paid for the remaining portions, unlike that in the shared ownership scheme. The owners would share the property or the profits received by investing in it equally or in the proportion in which they contributed to invest in the property, based on the terms as it may. This is a good way to build assets without having to take the burden of buying a whole property on one person.
Buying at auctions:
Now, auctions aren’t something that one may catch up any time he or she wish. Simply, auctions hold up for a very small proportion of the entire property market. Moreover, depending on the where factor, the property auctions may not be equally accessible for all. Also auction procedures and announcements may vary for different states.
However if one can make into it, auctions are one of the decent ways to buy a house at reasonable and competent costs.
Government aided house purchases:
In many countries, government helps the first time house or property buyers with the aim of maximising social welfare. Process can vary largely, from lotteries to registration etc. so would be the aid provided by the government. In some cases, government sells newly constructed properties at rate lower than the average market price, while in some cases, government might help by lending some proportion of the total amount at rates lower than the market interest rates. Also, there might be different eligibility criteria on the basis of income or such as well. One may want to scan through the local schemes to know more about government aided purchases.
Some tips on the ways to buy a house
Here are some tips that can be helpful in addition to all the information provided above. Great for those who have these noted!
- Those who live on rent might find the thought of buying a house pretty scary. While living on rent is a viable option if one don’t choose to settle at a place, it may not be the same for the one who are permanent residents of a locality. This is because, though buying a house would involve a bit of headaches and a heavy payment for once, every additional instalment the person pays will make sure he has got an asset along. This certainly is not the case when the person pays rent. It is one best way to buy a house.
- Planning some months earlier, if not years earlier for the house, can go a long way. May be with a help of a financial consultant, one may be able to pull better ways to buy a house. Also, the down payment won’t look like a burden that way.
- One should know that the more he or she pool or save for the down payment, lower will be the finance instalments that would accrue to him or her on a monthly basis.
- Getting the help of a trusted real estate agent or a good legal practitioner can help a lot in figuring out the best way to buy a house for a particular person or family. Professionals would be able to suggest the best alternatives based on a family’s income and capacity to pay the monthly EMIs.
- It is also important to keep the monthly income in the view. It is a determinant as of what EMI one can afford to pay monthly. For those with an unstable income, or who aren’t doing well financially, buying a property without planning might be a call to go broke.