So you have decided to buy a home, have you?

What are the issues while buying a home? Well there are many, let us look at a few of the generic problems:

1. One big advantage in buying a home (presumably with a loan, like everybody does) you need to get your finances in order.

2. We all think we can time the market do we not? Well decide on which house to buy and what is a realistic price you are willing to pay for it. For example if you have spotted a house in the suburbs – and are willing to buy it, put a ‘willing to buy price’. If the current price is Rs. 55 lakhs and you are willing to pay Rs. 45 lakhs, WRITE DOWN in a notebook the price you are willing to pay.

3. If the price comes to Rs. 45 lakhs BUY IT. The whole world will tell you how it will come down to 35 lakhs, but you should just go and buy. Timing is not just difficult, it is almost impossible. I do not know of anybody good at timing – either in the equity market or in the real estate market.

4. Choose a location that suits most of your family – spouse, parents, your children, – all the stakeholders. It is better to seek all opinions before deciding the location.

5. Remember there are no qualified or good agents who can help. Only hopelessly optimistic guys who think prices can never go down (if you are trying to buy) or hopelessly pessimistic guys who think prices can never go up (if you are trying to sell).

6. Borrowing more than 50% of the cost of the transaction (house, duty, interiors, etc.) is not a great sign.