Now that you have decided to buy a house, it is essential that you choose the one best suited for your needs. But this is not always easy. With enumerable advertisements enticing you with properties on sale, all offers seem very lucrative. In order to make the right choice and to narrow down your selection list, you must take into account certain parameters.

1. Understanding your own requirements first- Is the house an investment or for self use?

   This is the first point of consideration to select any property since the approach and strategy of selection differs for both - property for self use and property for investment.

   Needs and requirements should be gauged both in terms of present and future situations. For example, for a young couple, looking to buy a property for self use, a one bedroom house might be sufficient today. But in a few years when they have children, the same apartment will look small.

   Again, if you are looking at a property solely from an investment perspective, then you need to look at ‘returns on investment’, which are affected by various factors. For instance, if the property is situated in a well established locality, its prices will appreciate slowly, but if the locality is under-developed, the prices will shoot up as soon as the developmental work is complete. Property is usually ideal as a long term investment (8-10 years) and gives the possibility to investors to earn stable returns (in the form of rent) as well as capital appreciation.

2. Balancing requirements with budget

   When you decide to buy a property, balancing your budget with your requirement plays a vital role. Who wouldn’t wish to a buy a spacious home which is centrally located and comes with amenities such as 24/7 water supply and electricity, parking, gym, etc. But it is not always possible to fit all these luxuries in your budget.

   It is essential to identify a property, which not only meets with your basic needs but is also affordable. You would need to prioritise your requirements. With a number of lending institutions offering easy financing options, it is easier to balance your budget with your home requirements.

Important factors affecting the selection procedure