9 Essential Tips for First-Time Home Buyers

Bengaluru has emerged as a great destination for real estate investment in India. The developments in infrastructure, IT hubs, transportation and connectivity have played a major role in achieving this feat, and has drawn people from all across the nation as well as away. According to an article by Statista, the garden city’s average rental rate is 146.6 Indian rupees per square foot of the area per month. So, whether you are looking to purchase a home for yourself or want to convert it to a rental property, Bengaluru is the ideal place to invest. 

Buying a home is exhilarating yet daunting; First-time buyers usually struggle with finalizing the area, budget, and understanding of regulations before purchasing any property. There are plenty of opportunities, but challenges are numerous as well. To overcome the challenges, we have prepared a home-buying guide for first-time buyers, with essential tips and practical home buyer advice.

1. Determine Your Budget and Financial Situation 

Start by evaluating your financial health. Go through your savings, review your income, job security and dependency and any outstanding commitments. Take a note of any current liabilities, such as auto loans or credit card debts. What this does is set a realistic expectation on price range and helps you evaluate further steps. Keep your emotions in check and never go above your stated limits, it might create a huge burden on your shoulders. 

Most buyers in India rely on home loans. If you are looking for home loan tips for first-time home buyers, you can connect directly with Banks and financial institutions to assess your eligibility. You have to check the official websites of the Banks to understand your eligibility with factors based on income, credit score, and repayment capacity.

Note: In Bengaluru, down payments are usually 20% of the property’s value approximately. A larger down payment reduces your loan burden and interest costs.

2. Research Bengaluru’s Real Estate Trends

The real estate trends indicate the shift in the market growth. Bengaluru’s real estate market can be considered somewhat stable at the moment, but the wave of demand and betterment in new buyers can turn it into volatile. Hence, keeping up with the real estate trends becomes essential. 

Few arising trends are seen in sustainable and green homes, smart homes and expansion of metro lines throughout the city. To understand these trends in depth, follow our guide on “emerging real estate trends in Bengaluru”.

3. Shortlist Preferred Areas

Lifestyle Preferences

Lifestyle preferences are the turning point and essentially the major factor in finalizing your home. These preferences change subjectively from one person to another. Think of the conveniences and amenities you require for everyday living. look out for public transport, grocery stores, entertainment hubs, eateries and hospitals in your vicinity, which can elevate the overall quality of your life. Have your requirements sorted and look for the area that checks all the boxes or at least comes close to your expectations.

Besides, you have to take into account the future possibilities of the area you are about to invest in to buy a home. Therefore, the addition of IT parks and other infrastructural improvements tends to increase the demand significantly. Look out for the government websites for information regarding the development plans of the city. 

Proximity to Work & Institutions

Long commutes can significantly impact your lifestyle, health and even your daily routine, especially in Bengaluru, where traffic tends to keep on increasing every year. Hence, investing in a residential location that is closer to your work and nearby to schools, if you have kids, becomes crucial. It minimizes your travel strain and you could utilize the time and effort in activities that embrace well-being.

4. Understand Property Types 

Apartments vs. Villas vs. Plots

Bengaluru offers varying types of properties. For city dwellers, apartments are the most convenient type of housing. These come with exclusive amenities like a gym, pools, and whatnot. For those who prefer having more space and a private living, you can invest in luxury villas. 

If you are someone who is unsure currently on what to invest or do not have much capital right away, you can invest in buying a plot. The plot purchase itself will fetch you steady appreciation in the upcoming years, and by the time you are well settled, you have a choice of either building your own home or selling the plot for extra profit, making it a win-win situation. These choices depend totally on your budget and personal preferences.

5. Check RERA Compliance and Verify Registration

The Real Estate Regulatory Authority (RERA) protects homebuyers. The authority ensures transparency in real estate transactions. Developers must register projects with RERA and provide clear details before buying a home. This reduces fraud and delays.

Visit the Karnataka RERA website, search for the project by name or registration number. Check details like project status, completion date, and developer credentials. If the project isn’t registered, it’s better to avoid it. RERA compliance is a sign of reliability.

6. Plan for Additional Expenses

Stamp Duty & Registration

In Karnataka, the stamp duty is 5% of the property value above 45 lakh and the registration fees are additional, around 1%. You have to make a budget for these mandatory costs.

Maintenance & Utility Costs

New homeowners often overlook ongoing expenses. Apartments charge monthly maintenance fees, typically ₹2,000-10,000. Utility bills, like water and electricity also add up. Add these to your monthly expenses and create a realistic budget.

Furnishing or Renovation 

Most homes need basic furnishings or certain repairs. So, set aside ₹1-3 lakh for furniture, appliances, or other essential repairs.

7. Builder Reputation Matters

Conduct adequate research on the developer’s reputation. Do they have past projects with considerable construction quality and timely completion? Those who have lots of documented complaints will not have an easy time. Check and review websites or visit builders who have completed projects.  

8. Visit the Property (and Surroundings) in Person

You should never buy a property without visiting or inspecting the quality of construction. Here’s a small list of essential checks to be performed:

• Check the layout, ventilation, and natural light. 
• Look at amenities like parking, lifts, and security systems.
• For under-construction projects, assess the progress and materials used.
• Note traffic density, especially during peak hours. 
• Check for cleanliness and maintenance. 
• Look out for feasibility to nearby bus stops, taxi stops and other sources of transportation. 

If possible, speak with current residents. Ask about maintenance issues, water supply, or builder reliability. Their insights reveal details you won’t find in brochures. 

9. Negotiate Effectively

Negotiating effectively is the key to get reasonable discounts on your purchase. Developers usually reduce the price to close the deal, especially during the quarter or year-end. So, even if you end up with a discount of 3-5%, you might save a few lakhs on your big purchase.

You can also shortlist 2-3 properties, compare their prices, amenities, and locations. Having alternatives gives you leverage.  Also, many developers have their own websites with project listings and other details. Contact them directly via email or phone. This avoids broker negotiations.

Final Words 

I hope these tips and advice for 1st home buyers will help you to make informed decisions. Research thoroughly on the property types, legal checks and other enquiries, before finalizing a property. Create a realistic budget and arrange funds for down payment. Besides, contact multiple developers, brokers or online listings to compare options and prices. 

If you are looking to purchase your first home in Bengaluru, Choose Mudiita Developers; We offer premium 2 BHK and 3 BHK dwellings, that will elevate your overall lifestyle. Our ambitious project “Reflections” is launching soon in Electronic City Phase-1. 

Contact us for more information!

FAQs

Q: Is it better to rent or buy an apartment in Bengaluru?

A: It depends on your needs. If you are planning to shift or make a real estate investment, then buying a home/a flat in Bengaluru is the best decision.

Q: Is it really worth buying a flat in Electronic City?

A: Yes, it is worth buying a flat in Electronic City. It has a strong real estate market, large employment hubs, high rental yields, and modern infrastructure. You can also earn good returns by renting or reselling the property in the future.

Q: What is the biggest factor to consider when buying a home?

A: One of the biggest factors is comparing rent and interest rates on loan providers, especially for first-time homebuyers.

Q: What is the 3/20/30/40 rule in home buying?

A: The rule states:
20: The home loan tenure should be less than 20 years.
30: All EMIS combined should be less than 30% of your monthly income.
40: You should make a down payment of 40% of the property’s total cost.