Are you at that point in life
when you are considering buying a home? It is a tough decision to make and the
whole process can seem daunting initially. But if you keep in mind certain
suggestions, it will be easy for you to take the plunge. Here are some tips
that will help you make the right choice:
Get in touch with your own
needs
First, you need to understand
your needs. Ask yourself why you are buying a house. Are you buying a house for
investment or to move in? Also, you would need to understand what your
lifestyle and budget are. Would you prefer a cosmopolitan locality or would you
prefer a locality that you have always grown up in? How big should your home
be? What is your priority - schools in the vicinity? Office a stone's throw
away? Ask all these questions and jot down your answers honestly. Once you get
the answers to all these above questions, you should zero in on the locality,
the BHK requirement and the budget.
Budgeting is important
Have an adequate buffer after
allocating funds for a down-payment. Banks offer between 80 and 85 per cent of
your overall home loan, and the down payment would have to be your remaining
15-20 per cent. Make sure you have enough earning capacity to manage monthly
cuts from your salary. You should have a buffer of at least four EMIs in case
you have to forego your job.
Start scouring for ideal
projects
Once you are confident that you
have the financial stability needed for a home, start your search. Ask friends,
colleagues or family for recommendations. Since you already have a fair idea of
the locality, check if reputed builders or developers have projects lined up in
that locality.
Check documents and
credibility of builder
Do a background check of the
builders; see if they have projects elsewhere, and whether promises have been
delivered. Seek documents - the important documents are the deed that helps you
trace land ownership aka mother/sale deed, khata and updated tax-paid receipts,
joint development agreement or JDA, encumbrance certificate or EC, plan
approvals, sanction plan, NOCs and occupancy certificate (OC).
Sign the sale deed
Get a sale deed done only after
checking all documents and amenities offered. Check if the builder is actually
offering/delivering everything promised.
Time to register property
Once you are absolutely sure
about all aspects, you can go ahead and get the home registered. Make sure the
actual owner is there during registration. You would need to pay a stamp duty
of 5.6 per cent of saleable value and registration charges of one per cent of
the property value. These charges vary between states, and stamp duty could
also change every now and then.