Little Financial Mistakes During Home Buying That Bite Hard
His master's degree in finance helped Samir Suri, 32, opt for the best home loan plan. Suri did all the research to ensure there is no scope for any kind of financial goof up. He chose the interest rate type, the repayment tenure, etc, that would be best for him. Little did he know that he has been ignoring the small aspects involved in the house-buying process that have the potential to adversely impact his finances:
- Suri had opted for a ready-to-move-in home. Any financially prudent person would do that, given the fact that in an under-construction property, you end up paying rent as well as EMIs (equated monthly instalments) for a long time. As Suri spent most of his time doing the loan and related calculations, he forgot to notice that the housing unit was quite old and he will have to spend a substantial amount of money over repair and renovation work. This came as a financial burden for the 32-year old.
- Hard pressed over funds, Suri had no plans to change the furniture or other such articles when he moved to his new home. While shifting his family would realise his oversized articles of furniture do not really fit well in this smaller unit; the rented house was much bigger. Suri's calculations told him he will have to spend at least five per cent of the home purchase cost in buying new furniture.
- Suri's father had an old friend who dealt in property brokerage. As no background check was required, Suri hired the person for the job. Suri would regret later when he would find out he could have availed of the services of online property advisors for a lesser amount. A single penny spent in the wrong direction pinches a home buyer.
- He tried his best to make the most of his finances and bought a home in the suburbs. However, he worked in the city and has to drive one-and-a-half hours every day in one trip to reach the place of his work. Apart from the time that is wasted in the travel fighting giant traffic jams, Suri's monthly diesel bill has also gone up remarkably. Not to mention the fact that his automobile now needs servicing more frequently.