They are young, energetic and ambitious, full of ideas. They wear style on their sleeve, have the appetite for risk and adventure – they are the millennials. They are those who were born between 1977 and 2000. One of their dream is to have a pad of their own. This is a matter of pride for them and is totally understandable.
As per an estimate, 37% of the millennial’s are willing to buy a product or service from companies with a social conscience. This augurs well for such organised real estate players such as SOBHA which are engaged in CSR activities. It is well known that Sobha is a responsible corporate citizen, which works for uplifting the downtrodden and people in dire need. The Company is doing a great service in the areas of education & vocational training, providing healthcare facilities and helping the aged, single mothers, children and others in need of financial and other assistance. The Company has been spending 5% of its average net profit for the past several years much above the mandated 2% by MCA (Ministry of Corporate Affairs).
Millennials can experience a hassle free and smooth buying experience if certain key things are kept in mind. Let us put forth a few scenarios where the millennials tend to commit mistake. We have suggested ways for them to avoid pitfalls and to take steps to come out of it.
I just browsed through the internet and found a home!
Great! We all are aware of the internet phenomena that has changed the way people do their buying. Online information is a good initial feed to start with, but then it’s just the start. Remember that in reality things might be different from what is shown or depicted through online media. You will need to verify the facts and figures – pictures (of location and amenities), bank funding of project, project specifications such as master plan and floor plan etc. This can be a tiring exercise but it is worth taking for a secure investment.
Well, will banks lend me the required money?
Right. The banks will. That’s what they are here provided that you meet the eligibility criteria. And even if you do, they need not necessarily lend you all the required money. You should know the eligibility criteria and be prepared to have the required documents in place.
Thinking to use all the savings as down payment? Think again!
Imagine a situation where you poured in all your savings into that down payment and then there is a construction delay. Even worse, there is an urgent need for money in case of an emergency– Checkmate! Neither will you be getting the home on time nor will you come out of the crisis.
Please do factor in all your regular monthly expenses, other liabilities, if any, and also save some for medical emergency. Buying a home is a long term investment which requires a proper financial planning.
I am a risk-taker, I can manage.
It is important to understand that you need a regular source of income to repay loan. Your current or future job should provide for all expenses inclusive of the property investment. There have been cases where buyers who have invested heavily, lost their jobs later, got into a desperate situation and sold their units with heavy heart.
I have seen a lot of ads; I think these guys are good!
You should study and do a detailed research on the builder, their delivery track record, management, execution capability and reputation. What is advertised and promised need not necessarily be delivered. Do not fall prey to that. Get realistic and be practical when it comes to choosing the builder and its properties.
I got all I need, I think I am ready!
You are ready only when you factor in the several ‘hidden costs’ associated with buying a home. Be aware of costs such as property insurance (safeguards against damage and other issues), property tax (needs to be paid), utility bills and maintenance (water, electricity, security fees), bank interest rates (likely to be hiked) etc. These costs will eat into your earnings and could cause a lot of burn on the wallet if you do not plan for them.
Planning to buy a home is a very good decision, but it is prudent to take planned steps so that you are secure, sound and your investments are safe.
Ends…
