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.
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
v Good Resale
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
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.
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.
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.
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
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.