20 Things To Know Before Buying A House

Pritam Nagrale

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Things To Know Before Buying A House

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, which you go to every week. It is a lifetime 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 consider when you buy your first home or your dream home:

Things To Know Before Buying A House

20 Things To Know Before Buying A House

1. Figure Out Your Budget for Buying a Home

Figure Out Your Budget

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 a home outright or taking a loan and paying in installments.

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2. Get a Free Mortgage Calculator

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 you going to pay for the 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.

3. Check out the Builder, His Projects, and Brands

If you have sorted 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 its 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 homes 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.

4. Registration of the Property

things to consider when buying a house

If you have made the 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 land or a house see to it that the property is properly registered.

4. The Final Sales Agreement Document

Sales Agreement Document

Once things are sorted out, and you are ready to buy the home, you should move forward with preparing the final sales agreement document. Your final sales agreement could be on Rs 50/- or Rs 100/- stamp paper.

It entails the final actual account, advance payment, time limit to make due payment, how to pay installments, etc. All of this could be done with the help of a lawyer and in the presence of two or three witnesses.

5. Property Tax Receipts

Property Tax Receipts

Ensure from government and municipal offices that all the taxes on the property have been paid on the due date. Always ask for tax receipts from your owner to see whether there are notices issued by the court or not.

6. Release Certificate

If your owner took a home on loan, then you should find out whether he has paid the entire loan to the bank. If the owner has paid, then the bank must have issued a Release certificate. You should ask for it from your owner.

7. Quality of Construction

Quality of Construction

Before you plan to buy a home from a builder, you should check the quality of the construction. Check things like walls, 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 Google search. If you find out the construction quality of the building is not good, then never buy the home.

8. Is the Owner an NRI?

You need to be very careful when you buy property from an NRI. An NRI could give the right to a third person to sell his or her property.

However, you should make sure that the property is witnessed by Power of Attorney and duly signed by an officer of the Indian Embassy.

Hence, buying property from an NRI owner is different than buying from an Indian citizen.

9. Resale and Renting Potential of the Home

Resale and Renting

Sometimes it happens that people just want to buy a home and do not want to live there. They might rent it or even sell it when the home price is very high in the market.

Never buy a property that does not have a prospect of renting. If you find out that the property you are purchasing is not at a 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 sure that the house that you buy can be rented and you could also resale in the future with more than 50% profit.

10. Not a Disputed Property

Disputed Property

You also need to make sure that the property you would be buying is not disputed and does not have more than one owner. In some cases, there are more than two owners; hence in this situation, get a No Objection Certificate or Release certificate from other owners.

Do not buy if you don’t get a NOC.

11. 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 km from your home.

12. Schools, Hospitals, Markets, and Airports are 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, airports, 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, markets, and airports all are within the range of 1 Km.

13. 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 neighborhood about the home. You might get something new to know.

14. Neighborhood and Kind of People around Your Home


A good house is recognized by the kind of people that live around it. Your neighborhood must be good, and the society around you must comprise of good people.

It is very important for your children and their future. Moreover, the neighborhood must cooperate and help you if there is a need.

15. Quality of Air and Civic Amenities

air quality

In urban cities, due to pollution, the quality of the 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 to take home in suburban areas because pollution is very less there and air quality is also good.

Moreover, you should also look for other amenities like security which is very important, parking, a clubhouse, a lift, 24 hours power backup, a gym, a swimming pool, etc.

16. Condition of Roads Around Your Locality

Condition of Roads

The conditions of roads around your home are an important issue here. Roads must be good because it will help you to reach your office, school, hospital, or market well in time.

Never compromise on good roads. If the road is bad, then you might find it very difficult to ride your car to your office.

17. All Other Amenities

Similarly, there are many other small amenities that you need to look at. 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 not to have a swimming pool or gym, but security is a must.

18. House According to Vaastu


Now, the other important point especially for people, who are living in India is Vastu. 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 the front and back sides of your home.

All these things must be according to the Vaastu.

19. House Prices are Like Shares

house price

This has to do with the timing of buying a new home. House price is like shares because they rise and decline.

Hence you need to see real estate and property markets how they are behaving. You are smart when you buy a home at a low price and sell at a higher price.

Moreover, location also matters. It is possible that right now price of the home is very lower because of location, but in the future, that area might develop, and the price of the same house will double or even triple.

So buy and sell a home just like one would do with stocks.

20. Finally, Check All Documents

check all documents

Finally, when you are heading to 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 are a few things that you must keep in mind before you buy a new house. You could divide this into two things one is all necessary documents, and the second is amenities.

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