Home buying is a very important decision that everyone wants to take with immense care. To avoid post-purchase guilt, the buyer puts in maximum effort in shaping the best decision to buy a house. Many buyers take an extra leverage on the existing financial position to acquire more space and make the house a dream home. But then, a “big house for better living” is not always true.
With rising population and shrinking spaces, a big home is getting far from the reach of a family with an average income. Many buyers want to own a big house over and above their financial capacity based on the following misconceptions:
Buyers thinks that a home is not purchased everyday so put in everything to avoid any regret in the future. (Fact: It’s better to assess space required and buy accordingly than to buy an oversized house.)
A big house can be rented/sold partially if not required but a small house cannot be stretched if more space is required in the future. (Fact: Small house can be sold easily to buy a bigger house if required in the future.)
Only big flats are available at a good locality. (Fact: Small houses are more in number and it has wider market than the bigger homes.)
Buying a big flat would help in gaining higher social status and it helps in impressing friends or relatives. (Fact: The way you live is more important than where you live.)
Deciding on downsizing
Apart from the aspects discussed above, sometimes property agents make a false commitment or employ other tactics to earn more commission from the buyer.
There are many instances where a buyer finds it difficult to pay the EMI having purchased an oversized home.
It is always better to downsize the home and shift to a smaller one to avoid falling into the debt trap.
It may be wise to settle for a smaller house if one falls into any of the following situations:
Jobs that require shifting often: The job may force you to shift the place temporarily or permanently, in such situations it is better to own a small home because fund involvement is very low and it is easy to sell such property fast.
Weak financial position: The fund arrangement is a big issue while buying a house. If buyer finds it difficult to arrange funding and there is no certainty to increase the flow in future then