If you are planning to buy a new home then you need to figure out certain things before you sign the property papers. Buying a home is not like shopping that you go every week, it is a life time thing and you pay money that you earned your entire life.
Hence, you cannot be casual especially if you live in India. You have to take care of dozens of issues before you make plans for buying a home. Although I am not an expert but I have done lots of research before buying my first home and so I am writing all these points as per my own experience.
I have listed some of the things you need to know before you buy your first home or your dream home:-
Figure Out Your Budget for Buying a Home
The first thing you have to figure out is the budget for buying a home. How much are you ready to spend? That is the first thing. Moreover, whether you want a bungalow or an apartment you have to decide.
Today 2BHK in a city like Mumbai could cost you over Rs 2 Crore and 3BHK is over Rs 3 Crore. Hence, considering your budget, the first priority is you decide whether you will be purchasing home outright or take a loan and pay in instalments.
Get Free Mortgage Calculator
Now, if you plan to buy your home by taking a loan, which is most of the case then you need to calculate your interest rate and EMI. Calculations are simple, how much are going to pay for down payment and the time period for repaying the loan along with the interest rates.
Suppose, the cost of the 3BHK apartment is around Rs 1 Crore and as a down payment you paid Rs 20 Lacs then Rs 80 Lacs you need to pay through EMI. You have to decide whether you are going to pay in 10 years or 20 years. Hence, get a mortgage calculator, you could get it for free on various websites of banks.
Checkout the Builder, His Projects and Brands
If you have sort out your budget for buying a home then next is finding out about the builder. You have to know the profile of the builder and it’s past. Never ever overlook the conduct of the builder.
Find out certain things like how many projects he has completed then talk to the people who have purchased home from the particular builder. Also check out his website, visit the office of the builder and enquire more things like upcoming projects, date of completion etc.
Registration of the Property
If you have made final decision to buy a house then you must ask for a sale deed duly stamped and registered. The property you bought must be stamped and must be registered at the Sub-Registrar or the Sub District Magistrate (SDM) of your area.
Therefore before you buy a land or house see to it that the property is properly registered.
The Final Sales Agreement Document
Once things are sorted out and you are ready to buy home you should move forward for preparing the final sales agreement document. Your final sales agreement could be on Rs 50/- or Rs 100/- stamp paper.
It entails final actual account, advance payment, time limit to make due payment, how to pay instalments etc. All of this could be done with the help of a lawyer and in presence of two or three witnesses.
Property Tax Receipts
Ensure from government and municipal offices that all the taxes on the property have been paid on due date. Always ask tax receipt from your owner to see whether there are notices issued by the court or not.
If your owner took home on a loan then you should find out whether he has paid the entire loan to the bank. If owner has paid then bank must have issued a Release certificate, you should ask for it from your owner.
Quality of Construction
Before you plan to buy a home from a building you should check the quality of construction. Check things like wall, furnishing, paints and look & feel. See wiring, fittings, tiles quality, windows and all other interiors & exteriors.
You could enquire more about the builder by searching his name on the Google search. If you found out the construction quality of the building is not good then never buy the home.
Is Owner a NRI?
You need to be very careful when you buy property from a NRI. An NRI could give right to a third person for selling his or her property.
However you should make it sure that the property is witnessed by Power of Attorney and duly signed by an officer of Indian Embassy.
Hence, buying property from a NRI owner is different than buying from an Indian citizen.
Resale and Renting Potential of the Home
Sometime it happens that people just want to buy a home and does not want to live there. They might rent it or even sell it when home price is very high in the market.
Never buy a property that does not have a prospecting of renting. If you find out that the property you are purchasing is not at good location then no one would like to live there.
Hence, your renting possibility would be restricted if you plan to rent your house.
So make it sure that the house that you buy could be rented and you could also resale in future with more than 50% profit.
Not a Disputed Property
You also need to make sure that the property you would be buying is not disputed and it does not have more than one owner. In some cases, there are more than two owners hence in this situation get No Objection Certificate or Release certificate from other owners.
Do not buy if you don’t get a NOC.
Your Home Around the Workplace
Convenience is very important when you buy a property. Your new home must be close to your office. I think this should be your first consideration because ideally your office must be within 5 kms from your home.
Schools, Hospitals, Market, Airport All Within 1 Km
If you cannot manage to get a property that is near to your workplace then you should at least try your best to buy a house near schools, hospitals, markets, airport etc.
You can manage if your office is far away but your children cannot if school is too far. Similarly you should also see to it hospitals, market and airport all are within the range of 1 Km.
Enquire More About the Seller
If your inner thing is not satisfied then you could ask more things about the seller. Like any problems that the house might have that they would not like to share. It happens that if there is something wrong with the house the owners would never tell you because they have to sell.
So in that case, you should enquire from others in the same neighbourhood about the home. You might get it something new to know.
Neighbourhood and Kind of People around Your Home
A good house is recognized by the kind of people that live around it. Your neighbourhood must be good and the society around you must comprise of good people.
It is very important for your children and their future. Moreover, neighbourhood must be cooperating and help you if there is a need.
Quality of Air and Civic Amenities
In urban cities due to pollution quality of air is very bad and you cannot breathe. Especially for your children because it can cause asthma or severe lung disease. I would advise you take home in suburban areas because there pollution is very less and air quality is also good.
Moreover, you should also look for other amenities like security wh
ich is very important, parking, club house, lift, 24 hours power back up, gym, swimming pool etc.
Condition of Roads Around Your Locality
Conditions of roads around your home are an important issue here. Roads must be good because it will help to reach your office, school, hospital or market well in time.
Never compromise on good roads. If road is bad then you might find it very difficult to ride your car to your office.
All Other Amenities
Similarly there are many other small amenities that you need to look. Although it is not necessary that you find every other amenity around your house but it is necessary that you should never compromise on security.
It is fine to not have a swimming pool or gym but security is must.
House According to Vaastu
Now this is very important especially people who are living in India. Still Vaastu matters when you buy a new home.
You need to know the direction in which your living room, dining room, kitchen and guest room are facing. Moreover, the direction of front and back side of your home.
All these things must be according to the Vaastu.
House Prices are Like Shares
This has to do with the timings of buying a new home. House price is like shares because they rise and decline.
Hence you need to see real estate and property market how they are behaving. You are smart when you buy a home at low price and sell at higher price.
Moreover, location also matters. It is possible that right now price of the home is very less because of location but in future that area might develop and price of the same house doubles or even triples.
So buy and sell home just like one would do with stocks.
Finally Check All Documents
Finally, when you are heading for signing a deal you must check all necessary documents like registration papers, NOC, tax receipt, final sales agreement etc.
Move forward only when you have all the necessary documents with you.
So these were few things that you must keep in mind before you buy a new house. You could divide this in two things one is all necessary documents and second is amenities.