Planning to buy a home? Did you know that the excitement, urge & happiness to buy a home comes with a tinch of precaution? Yes, it does!
So, don’t rush to book your dream house before reading this.
Buying a home is one of the most marvellous feelings for any individual/ family, & when it is your first investment, it adds even more excitement.
But since it also requires a major amount of your cash chunk, there are a few orders of things that should be observed to make the best of your investment.
Here are a few questions that you need to research and ask yourself to simplify your buying process.
a status of self-dignity and respect. However, the decision to buy a house purely based on emotions can be risky. A person has to consider all the factors associated with it.
- One basic thumb rule is to check that the property value should not be more than five times your annual salary.
- Another rule is the 35/50 rule. It is advisable that the housing EMI does not exceed 35% of your monthly income & 50% including car and all other EMIs.
Also, keep a check whether:
- You are financially stable or are you digging too deep into your savings?
- Have you considered the social factors, discussed with your family/partners?
- Are you looking to buy a house from an individual’s perspective or as a family?
- Are you going to shift to the new property or you’re looking at it as an investment opportunity, or maybe you are planning to rent it out?
- Decide whether you want to buy a flat in a single residential apartment or in a society with multiple facilities and amenities or whether you’re looking for a villa or a service apartment.
- Buying a home can be one of your most expensive investments.
- If it is your first home, you need to be aware of the shady practices involved in the property purchase process. Despite the efforts to bring relief to the customers with RERA, there still remains a grey area within this hassle.
- Thus, a trusted Real Estate agent can help you jump through these hassles and even help you with the negotiation part in accordance with the market price and keep a small percentage in exchange for his service.
- However, not all real estate developers are insincere and you can even consider buying a property by directly paying site visits at the location. In that case, you can choose a brand, an honest and trustworthy developer.
- If you are looking for a property in Bengaluru, Merusri Developers are the forefront runners when we talk about educating consumers about their investments.
- Online real estate market sales have skyrocketed post-pandemic. The processes have become simpler. Thanks to the advancements in technologies such as VR, a customer can now make site visits at the ease of their fingertips.
- Some people are yet to be comfortable with having the ease to judge a property online and so, one can choose online/offline visits as per their level of comfort.
- It is always advisable to pay a visit to the site once before purchasing a flat.
Eligibility Criteria for a Home Loan vary depending on several factors such as your monthly income, other EMIs, down payment capability & also age, income bracket, property type and location, the market value of the property, etc.
Based on your credit score, the amount of disbursement and tenure would vary.
One important thing to keep in mind is the tax benefit & deduction under various government schemes.
- Section 24- The interest portion of the EMI paid for a year can be claimed as a deduction from your total income up to a maximum of Rs 2 lakh.
- Section 80C- The principal portion of the EMI paid for the year is allowed as a deduction for upto maximum of Rs 1.5 lakh.
– Stamp duty & registration deduction of upto Rs 1.5Lakh.
Under the PMAY scheme, you can avail a subsidy of upto 6.5 % & subsidy amount of upto Rs 2.67 Lakh.
- Sales Deed
- Mother Deed
- Purchase agreement
- Building & Layout sanction approval
- Completion/ Occupancy Certificate
- Possession letter
- Khata Certificate
- Allotment letter for under-construction buildings
- Encumbrance Certificate
With those attractive hoarding prices comes a * mark that conceals the hidden costs involved during the purchase of a property. They mainly include:
- Registration fees & stamp duty
- Parking charges
- Advance annual maintenance fees
- Brokerage fees
- Processing fee on home loan
- GST
- Interior work
- Preferential Location charges
Every policy issuer will have its own set of terms. The premium of your home insurance also varies based on some factors such as location, characteristics of the house, etc.
Thus it is better to keep a check on things that would be covered under the policy. Check if the policy covers personal materials cover and damages by natural disasters.Look after the deductibles that won’t be covered. Else it can be a costly affair later.
Should I opt for a new or used property? Should I also explore the angle of buying v/s renting?
Here are your answers:
- Are you looking to buy a house from an individual’s perspective or as a family?
- 1. Old v/s New property:One major variance between the old & the new properties is the difference in the carpet areas of the flats. Due to the revised IS Codes, the newly built properties would be earthquake resistant but at extra loading.
An old property might cost 10-20% lesser but then the flat condition needs to be introspected very well for water leakage, column strength, etc.
- 2. Buying v/s Renting:Apart from the factors such as savings in hand, job dependency, expenses, etc, one can additionally consider this rule to get added clarity on their investment decision.
There’s a simple thumb rule that we can consider before deciding whether one must buy a flat or rent it. It is the 4% rule.- If the annual rate is less than 4 % of flat value- Rent the property.
- If the annual rate is greater than 4 %of flat value- Buy the Property.
Example-
Let the price of Renting a 2-BHK be 15,000 Rupees and the actual value of the flat is 60 lakhs.
So the calculation for 1 year (12 X 15,000=1.8 Lakhs). Again, (1.8/60) X 100= 3 %.
Thus renting can be a good decision.
One point where we are often stuck while buying a flat is choosing the preferred location. Prime locations always have a higher market rate and areas with lower market rates are too far from important access points. So, keeping a check on the distance from significant/ mandatory structures such as schools, hospitals, grocery stores, etc is always a good idea.
One can consider buying properties at a slight distance from the prime location as that would provide a significant price cut & yet being not too far from the city.
Amenities and open spaces help beat the stress.
If you are buying a flat in a gated community, it is always better to enquire about the security solutions, amenities, green space, maintenance, etc. This shall give you a sense of security as well as an understanding of how qualitative your leisure time could be.
Now that you know everything that needs to be asked before buying a house, you can now be the superhero to your family who can now weigh their decision after assessing all the necessary parameters.
If you are on your way to buying a new house, would you not want to consider buying a property from a developer who is willing to educate the customer and provide a hassle-free booking experience?
Merusri Developers– An honest & trustworthy brand that brings luxury, peace, and comfortable living amidst the lap of nature in the rapidly emanating area of Bengaluru.
If Bengaluru is your choice of living, once, come and experience our services and our offerings. We are sure there would be no turning back from here!
Merusri Developers– An honest & trustworthy brand that brings luxury, peace, and comfortable living amidst the lap of nature in the rapidly emanating area of Bengaluru.
If Bengaluru is your choice of living, once, come and experience our services and our offerings. We are sure there would be no turning back from here!
