10 things to watch out for
when buying a home
10 things to watch out for when buying a home
Keeping in mind the current times, now seems to be the ideal time to invest in property. With cheaper loans and lowering interest rates, we’ve seen a spike in real estate and a guidebook at this point would be more than useful.
Here’s a detailed list of 10 points that must be taken into consideration before buying a home in India.
01.
Hire a lawyer
to go through all documents of the land and the property. It is difficult for a consumer to understand a property extract filled with industry jargon such as title deed, land use, approvals from municipal corporation, occupational certificate. In case of a resale, this document will cover receipts of property tax paid and loan release document from bank in case of fully paid-up loans on the property.
02.
Total usable area
This is especially important for apartments that are still under construction. Majority of the time, a sale is made on the super-built up area. However, customers should be equally comfortable with the liveable area that they’ll finally get to use. This point is one of the most important considerations before buying a home.
03.
Cost of ownership
This would include parking charges, stamp duty, registration charges, furnishings. All of the above to contribute to almost 5-25% of the base cost of the apartment.
04.
Running Costs
This would include property tax, maintenance, commuting charges. Ensure that this fits well within your monthly budget.
05.
Check the amenities
Buying a property that is wrapped up with several amenities is a very attractive proposition. However, homes with these additional amenities do come with a higher cost and all the extra facilities may not be of use to you. It’s good to thoughtfully review the must-haves for your family’s comfort but at a practical cost. That said, if you are purchasing the home for the purpose of renting it out, you may want to more carefully consider the cost of amenities and the annual maintenance charges for them.
06.
Plan out payments
Find out whether the home loan you are considering is the cheapest, learn about government benefits that could be applicable to you such as the Credit Linked Subsidy Scheme and the Pradhan Mantri Waas Yojana (PMAY). Explore the various rates for woman co-ownership or senior citizen ownership if application – fish out the best rate. Discuss the cash component with the seller, if any – arranging large sums of cash would require some notice.
07.
Average property costs
It’s good to begin budgeting by finding out the average costs of homes in the locality and size that is right for you. A point to note is that home prices mainly vary depending on the area, amenities included in the property, open area and the promoter of the property.
08.
An investment tool
Think through the profile of your typical tenant and whether the location of your apartment is good enough for such a tenant. You must also ensure that this purchase fits into your overall asset allocation and that you have a balanced mix between equities, debt instruments and real estate.
09.
Meet the people
and the neighbouring building people to find out crucial information such as the situation of water supply, electricity supply, availability of domestic help, security and safety in the neighbourhood, grocery stores, deliveries from restaurants, gyms, hospitals, schools etc. They may be able to give you more hands-on information than your broker or real estate agent.
10.
Plan out your payment
It’s important to keep tabs on whether the other occupants in the building are like-minded to avoid future conflicts of interest. Eventually over a period of time, there may be conflicts on how to maintain the building, whether animals are allowed in the elevator, adjusting on parking spots etc. Protect your needs. This point is also an important consideration before buying a home in India.
