Real Estate Investment: Step-By-Step Guide for First-Time Buyers
- Mohamed Uzair
- Feb 24
- 2 min read
Updated: May 19
Investing in real estate at an early stage in life provides numerous advantages for long-term financial security, particularly in a dynamic market like Gurugram, Mumbai or any other city giving you great returns over a period of time!
This is the perfect Step-By-Step Guide for First-Time Real Estate Buyers.
As an experienced Realtor from Gurugram's real estate market - let me share my views with you today. Young professionals can leverage the appreciation of property values, capitalize on tax benefits and create opportunities for future upgrades.
Below, I've penned down my thoughts (i.e. a detailed guide) on how you could begin this journey, along with real-world examples, for first-time buyers.
Why Invest Early?
1. Affordability: The earlier you invest, the lower the prices.
Real estate prices have risen a lot over the past decade, depending on various areas or micro markets in Gurgaon whilst the infrastructure growth has been disappointing. On the contrary, areas like Dwarka Expressway & New Gurgaon have witnessed a significant price increase due to emerging transport corridors making them lucrative for early investors & even young professionals from corporate segments.
2. Higher Loan Eligibility: Young buyers (in their 20s or early 30s) are eligible for longer loan tenures, which spreads out monthly EMIs, making it easier to finance a property purchase without straining day-to-day budgets.
3. Compounding Returns: The earlier you invest, the longer your property has to appreciate. With some ongoing projects like Global City II & the metro or RRTS expansion, locations along these routes are expected to see significant price hikes in the coming years.
Quick Step-by-Step Guide:
Step 1: Evaluate Your Financial Standing - Assess your savings, ongoing expenses, and debt obligations. Ideally, you should aim to save 20-25% of your monthly income for a down payment.
Step 2: Research the Market - Identify areas with high growth potential. Dwarka Expressway, New Gurgaon and Golf course Extension Road are & will see infrastructure boosts which are ideal for first-time homebuyers. Prices here range between Rs. 16,000 – 20,000 per sq. ft. plus, & can exceed Rs. 28,000-30,000 per sq. ft in coming year or so.
Step 3: Get Pre-approved for a Home Loan - Approach banks or financial institutions for pre-approval of a home loan. Interest rates in India currently hover around 8.5-9% for home loans, making it crucial to compare offers, and opt for lenders providing better repayment terms.
Step 4: Budget for Additional Costs - Apart from the property cost, budget for stamp duty, registration (usually around 5-7% of the property value in Gurgaon), maintenance fees, and insurance. Ensure these additional expenses are factored into your overall financial plan.
Step 5: Purchase and Leverage for Future Upgrades - Once you've secured a property, keep an eye on its value appreciation. For example, if you buy a 1BHK for Rs. 90 lakhs in a growing area, in five years, the property might appreciate to Rs. 1.8-2 crore, providing you the equity to upgrade to a larger home or a better location.
Wish to Consult / Invest timely in Gurgaon and earn a significant amount over a period of time? - contact Amit Behal : +91 9319671726
