facebook Ten Things to Consider before Buying New Property - Vigyaa

Delete Collection?

Are you sure you want to delete this collection permanently?


Delete Collection?

Are you sure you want to delete this collection permanently?

Everyone has a Story to Tell and an Experience to Share!

Let’s Start Writing


Ten Things to Consider before Buying New Property

The day you start earning something is probably the day you start planning what your dream home will look like.

Anyone can tell you that buying a house is quite a big deal. First off, it’s a huge amount of investment. Second, it’s something you’ve worked for your entire life. The day you start earning something is probably the day you start planning what your dream home will look like.

For some, this planning begins even before that, at a very young age when during pretend-play we build castles in the cloud. Even if the property you are seeking to invest in isn’t your home, rather for investment purposes, it still is of course pretty important. You’d want returns from it and you’d be looking for value for money!

This is why a home specialist Melbourne is so significant! They can guide you and help you find just what you’re looking for.

Ten Things You Need to Keep in Mind!

Since buying new property is, of course, a significant amount of investment, this decision demands due care. There are many things that must be carefully considered before deciding on buying a property.

Here are ten points that absolutely must be scrutinized in depth:

Use a Trusted Realtor

Buying a house involves many decisions. Ideally, to make such decisions someone informed should be there by your side lending you good advice based on sound knowledge and experience. This would, of course, be a home specialist Melbourne.

Always make sure that the realtor or the home specialist you’re trusting is worth his/her mettle. Even more important is that they will be serving your interests well.

Be Mindful of the Contracts Involved

When buying any new property, there’s lots of paperwork that needs to be addressed. Many papers need to be signed, and a huge proportion of these are actually contracts.

While these contracts often look standardized things that just have to be signed and done away with, that’s simply not true. A lot of things can be negotiated. Hence, review and inspect every paper carefully before signing anything.

Keep in mind your Long Term Plans

There are many questions that need to be answered before committing to a new property. Where do you spot yourself in 10 years? If you’re buying a home, do you plan to get married? If you do plan to get married, how many kids would you want to have? Will you be staying at your current job for the foreseeable future?

Since buying property is one of the bigger financial commitments of anyone’s lifetime, all related aspects need to be addressed.

Consider the Commitment

I don’t mean to sound like a pessimist, but there’s so much at stake when you buy a property, especially when it’s with someone else as well.

For instance, if you’re married, there’s always a chance of divorce, and then there are laws governing the distribution of all assets. If you’re not married but are investing in a new property with your spouse, you need to understand things may go south and plan according to that as well. Best to get everything in writing!

Renovations needed?

Any renovations or changes you might want to make after investing in a new property needs particular attention. Don’t blindly assume the costs that will be involved, call in people, take estimates and only commit if you think you’ll be able to bear costs of all involved things.

These include materials, labor costs, consultants’ fees, and many others.

Keep your Budget in mind

It is comparatively cheaper to fix minor cosmetic issues in a new property. However, like any home specialist, Melbourne will tell you, it’s the major things that cause a financial burden.

This is not just cabinets, counters and appliances. Did you know that the cost of labor involved can almost triple your cost? No, right? Well, that’s the way it is. Always keep your budget in mind and plan everything according to that.

All the costs involved

The simple rule here is to buy the property you know you can afford. This decision should be made keeping several factors in minds such as your projected income, insurance, taxes and of course the dynamics of the market and the economy.

Maintenance costs should be considered as well. After all, it costs money!

Loans involved?

Lending laws are what needs to be understood here. There are many types of loans. For instance, a person a few years out of college might have student loans.

Prepare all your documents in an organized manner, so you know all loan related issues that need to be discussed.

Home Mortgage Deductions

Since home mortgage deductions are such a huge attraction, many buyers end up buying more than they can manage just for the sake of deductions. This is a huge mistake as other factors need to be attended to, as well.

Are you really ready?

Ask yourself if you’re really ready for such a serious commitment. Buying new property simply because you “should” have bought property, or because it’s the norm in your circle is simply not reason enough.

0 comment

Related Articles

The Loan Against Property(LAP) is considered to be an all-purpose loan. It can be used for education, marriage, expansion of business or medical expenses. The cash crunch in the life of an individual can be eased out with the help of a loan against property. This multipurpose loan can be availed at a much cheaper rate. Both salaried and self-employed individuals can avail offers based on customized property loans. There are several other benefits related to Loan Against Property which are discussed as follows.


Benefits of Loan Against Property(LAP)

Loan Against Property(LAP) is regarded as a multipurpose loan with no restriction in usage. The following are the benefits of availing LAP:

Ease of Approval

Availing to LAP is way simpler than availing for other unsecured personal loans. The only thing that has to be kept in check before availing for LAP is that it should be free from all sorts of mortgage litigations.

Usage of Fund

The borrower can use the fund for any purpose. For example, the fund borrowed can be used for foreign study expenses, medical expenses, home construction or renovation, and so on. It can fulfil all the monetary needs of the borrower.

Cheaper rates

The LAP offers an economical way of handling the financial crunch. The LAP offers interest rates which are less expensive than other unsecured financial product. The interest rate of LAP ranges between 12% to 15%. On the other hand, personal loan offers an interest rate that ranges between 12% to 25%.

Loan Tenure

The loan tenure under loan against property is stretched over a long period of time. The loan tenure may extend up to 15 years. This is beneficial as the borrower’s premium, spread over the tenure will be low in comparison to the personal loan. This will create a less financial burden on the borrower.

Mortgage Different property Types

The loan against property can be availed on different types of property. The borrower can mortgage his self-occupied property, commercial property, rented residential property or piece of land owned by the borrower.


The borrower can close the loan agreement by paying the outstanding amount even before the term period ends. The pre-closure of a loan against property is free from any charges or penalty. But if the loan is on the fixed interest rate, then the borrower has to pay a nominal amount as repayment charges.

Top-up loan

One can take a top-up loan on the existing loan against property. Under this facility, the borrower can take another loan on the same property with minimal paperwork.


The loan against property creates less burden on the borrower. The low EMIs and the longer tenure lowers the financial burden. Together these offers under LAP make it more attractive than the personal loan.

Ownership Authority

Under loan against property, the borrower of the loan enjoys the continuous ownership of the property. Just the mother deed and the sale deed of the property will be under the custody of the lender until the loan is paid off.

Unlock Real Potential

Loan against property unlocks the real potential of the property. Loan against property offers the best value of the property with a lower interest rate.

Loan Amount

The loan against property depends on the price of the property. The borrower will get up to 70% of the property value. The loan amount can reach as high as 5 crores.

Also Read:-

The facilities and ease of getting the loan against property make this loan facility more attractive. Besides the benefits enjoyed by the borrower, the most important thing that should be kept in mind is that if the loan amount is not paid, then one can lose his property. 

Reference Image
}); $('.clear').on('click', function () { $('.ala_carte_details').empty(); $('.pay-btn').show(); });