Are you thinking of buying your dream house? If yes, then you must be having a lot of questions and you must be looking for some guidance from everyone you know, Why not utilize the knowledge of readers here. Moving forward with a few basic tips. First time home buyers in India need a lot of caution and due diligence before signing on the dotted lines of a home buyer’s agreement. The following tips are intended to guide first time home buyers as they finalize one of the most crucial investment to be made.
You need to know how much money you will have each month to meet your expenses. Remember that your property will seldom be your final property, so search after your present property getting needs first, and let the long term take care of itself.
v Location & Connectivity
Take a good look at the location and the locality. It is better to try a place adjacent to the prime location of your city so that the price is not that high. See to it that the property you are interested in in close proximity to schools, educational institutes, hospitals and supermarkets. Connectivity plays a vital role in boosting your property’s resale price or attracting tenants. Ensure that the property is located in an ideal location with good connectivity. Investing in property that can be easily reached to and from destinations like the airport, railway station, bus stops etc are ideal and recommended.
v Good Resale Value
Resale Value is an important thing to consider before you plan to invest or buy a property. Property buyers never consider resale value when they buy. They make the mistake of focusing solely on a prime locality or the budget of the property. If you choose the wrong property or location, it is possible that your future sales price will always be less than the other homes around it.
v Stamp Duty & Registration Fee
This is an important expense or tax, much like the sales tax and income tax that are collected by the Government. If you want to know the market value of your property and the stamp duty amount on it, you need to contact the Ready Reckoner to locate your valuation zone and sub-zone. This adds approximately 10% more.
v Additional Costs
Even if this isn’t your first home buying experience, you will want to get help from a team of professionals. Fees or service charge by real estate agents, lenders or mortgage brokers, home inspector, land surveyor, lawyer or notary etc should be considered. Find out how much is the maintenance charge. Will car parking be provided and do you have to pay extra for it.
v Property Insurance
Property insurance safeguards your financial future if certain damages occur to your property. The cost is relatively low and provides coverage in case of problems with the property title, certain damages like leakages, uneven flooring & improper construction to name a few, or any legal issue. When taking a decision to protect your major assets, it is important to have a resource you can trust, to guide you along the way. Choosing the right house insurance protects your property and makes the process of buying easy.
v Loan Eligibility & Tax Planning
Home loan eligibility depends upon the repayment capacity, income, existing loans or debts and age of the loan applicant. The maximum loan that can be sanctioned varies with the banks and the eligibility criteria may vary according to the bank or RBI regulations.
Tax planning, a legitimate exercise and should not be confused with tax avoidance or tax evasion. Tax benefits can be claimed on both the principal and interest components of the home loan as per the Income Tax Act. You can also purchase property in joint names. Joint home loan is an option that might prove fruitful for married couples. Know about your home loan and tax benefit available on it.
v Research about Builder
There are tons of questions a property buyer should ask a builder. The more you know or communicate to your builder, the happier you will be at the end of the project. To ensure that the builder is faithfully following what he has promised you, ask for a copy of the project’s drawings duly stamped by the municipal authorities. The developer is allowed to make some changes in the original plan. One should also find out in detail - the legacy and the completed projects by the developer.
v Legal Advice
Be it construction, purchase, sale or lease of property, legal advice is mandatory. Since property prices are ever increasing, real estate investment is a very profitable form of investment. Just buying and selling is not enough in real estate investment, you have to be clear about the laws that govern the area of the property. Before buying the property you must take legal advice and prepare an agreement. Before planning to buy Luxury Residential Property, understand the laws pertaining to property buying and engage with a team of professionals you need to make the process of buying a home simple and easy.
"Runwal Greens Project Financed by Piramal Finance Ltd. and HDFC Ltd. The Properties have been mortgaged in favour of IDBI Trusteeship Services Limited (beneficiary: Piramal Finance Ltd. & HDFC Ltd) and the buyer will be required to obtain a no-objection certificate prior to entering into any agreement for the sale of any unit in the Project. MahaRERA Registration no.: P51800000271 (T5 - T8)"