Buying a new home in India can be an exhausting experience, both financially and emotionally. However, with the right guidance, one can overcome the hindrances involved. Here are six vital considerations for the first time home buyers that will help them prevent any feud or problems.
- Decide your purpose – It is better to determine what you require from your property before purchasing it. Are you buying it to transform your rent money into mortgage payments, in order to avoid them go to waste? Or you are planning to purchase your dream home? Some people also invest in properties with a motive to give them on rent and make a sound income from the property every month. Zeroing down your objective will help you identify the property, area, and locality, as you will buy the property according to your need; whether you are looking for a condo, or a single-family house, or a multi-family building.
- Get the feature list ready – Next is to make a checklist of the things you like and dislike. The property should fulfill your desires as much as possible. Your list must include basic desires such as easy connectivity to main roads, safe surroundings, and proper electric and water supply. Moving forth, you can also see if the smaller details match your taste like the bathroom layout and the kitchen décor.
- Check for Home Loan – Before making any commitment, check how much loan are you eligible for. The bank or the lender should be willing to lend you the amount you require to purchase your dream property. However, it may happen that you think you can afford an INR one crore, but the bank considers you to be eligible for only seventy lakhs depending upon factors such as your salary, the number of other debts that you have taken, the stability of your job, etc.
- Calculate Down Payment – Based on the loan you are eligible to receive from the bank, calculate how much money you can put in the down payment. Along with checking the property taxes in your nearby areas, have a look at the monthly installments you will have to pay. In addition, estimating the cost of maintenance and insurance is also advisable. Lastly, analyze the finishing cost of the property.
- Finalize the property – Now comes the challenge of looking for the property. Identify the locality and properties that interest you and meet your requirements. You can consult your real estate agent for his opinion, check online listings, and ask your friends if they know of a property that fits your budget. Post finalizing the property; do remember to verify all the necessary legal documents, which will prevent you from a treachery. These documents must include the Title Deed, Commencement Certificate, building layout, Completion Certificate, and the Occupancy Certificate.
- Send your proposal – Once you have inspected the home and you are completely satisfied with all the available amenities and infrastructure, you can decide on the amount you are prepared to shell out for that particular property. Consult your agent in this decision and ask him to make an offer to the seller. The seller should either agree with your offer or propose a counter-offer.
Once the cost is finalized, you should move forward to complete the paperwork and close the deal. The legal documentation involved in the purchase of a property is almost the same everywhere in the country, whether you buy a flat in Chennai or a villa in Bangalore.