According to a research report by Prime Global Residential Forecast, the market value of homes in Mumbai likely reduced by 5% in 2020 and would further fall by 3% in 2021. This decline in real estate prices has been a result of the economy having suffered considerably due to the COVID-19 pandemic. So, this is perhaps the best time to buy residential property outside your hometown. If the property market value rises in future, you can also consider selling your home at a better price, earning a good ROI. Here are some useful tips to guide you to buy a house profitably in a new city.
Important Things to Remember before Buying a New Home
- Check your overall budget
Check your net budget for shifting to a new city and purchasing a home there. For this, first research the cost of moving services, packing supplies and the average property prices in your chosen city. For instance, a full-service moving company could charge a lot for an interstate relocation. You should also consider the property agent’s fee, the down payment, closing costs, registration charges, monthly mortgage payments, homeowner’s insurance, property taxes and more. If your monthly income falls short, a home loan could come to the rescue. Today, you can get a home loan with easy eligibility criteria, great interest rates and minimal paperwork.
- Research and compare property rates online
If you’re in a dilemma whether to buy an apartment in Delhi or a flat in Bangalore, compare their housing markets first. Also, compare the living costs of the cities before picking one to move to. Of course, the decision could be made for you by where your job is located.
- Rely on a reputable real estate agent
A reputable realtor has comprehensive knowledge of the housing market in different neighbourhoods in a city. Let them guide you regarding when and where to purchase residential property. A good property agent can provide you with listings that suit your budget and requirements.
- Try renting first
Renting first in a new city can familiarise you with it. For instance, you can check out a locality (like amenities) before fully committing to it. If the area suits you, you can proceed to buy residential property there. You can also check the commute services in the area and whether it’ll be near your new workplace. Besides, the rent itself can help you roughly estimate the property value of the place.
- Check whether your move is covered by your employer
If you’re shifting for a job, see whether your employer will cover your relocation costs. Keep your receipts from truck rental companies and moving companies if your job includes a relocation package. Otherwise, you might need to dip into your savings or take for a loan against your FD to pay for it.
Assess your budget and move to a new city without burning a hole your pocket. If needed, consider taking financial help like a suitable loan to be better prepared.
