Before rushing into buying a house, ask yourself why you need it instead of renting an apartment. Renting might be better financially because you don't have to deal with high interest rates on a home loan. Maybe you feel pressured by your landlord or insecure about your living situation, which is why you're considering buying.
Think about how soon you need to move into the new house. This will help you decide if you want a ready-to-move-in property or one that's still being built. Make sure the delivery time matches your timeline.
Know what size and specifications you need, like how many bedrooms. This will help you narrow down your search and figure out what you can afford. It'll also help you see if your preferred location is within your budget.
Once you know your needs and budget, you can look for deals from different builders and negotiate for a better price.
1. Buyer's Financial Situation
Many times, we get excited about a fancy property with all the features we want, like a balcony, deck, and amenities. But when it comes to negotiating the price, it often exceeds our budget. That's why it's crucial to have a fixed budget in mind.
Buying a house is a big long-term investment. So, before deciding on your budget, consider your other expenses like car loans, education fees, and monthly bills. Also, think about unexpected expenses that might come up.
Once you've looked at your financial commitments, you'll have a better idea of how much you can afford to spend on a house and the monthly payments you can handle. It's important not to go over budget because struggling to repay the home loan can be stressful, and you might not fully enjoy the fancy features you paid extra for.
2. Check Developer's Reputation Before Buying a Property
Before buying a property, it's crucial to research the builder's background. Look into their past projects and check online for reviews and experiences from previous clients. This will help you understand the builder's reputation and decide if they are reliable and trustworthy for your investment.
Before you decide to buy a property based on a fancy sample flat, make sure to inspect the quality of construction. Check the strength of the walls, the type of flooring, the color used, window frames, and the standard of bathroom fittings.
If you're considering an underdeveloped property, try to visit other properties built by the developer to gauge the quality of their work. You can also visit projects that are almost finished to get a better idea of the builder's construction style and quality.
3. Carpet Area and Super Buildup Area of the Property
Builders often try to attract customers by quoting prices per square foot. However, they typically include various spaces like the lobby, elevator area, and staircase in this calculation, inflating the total area.
This inflated area is called the super built-up area, which can be around 30% more than the actual usable space, known as the carpet area. To make an informed decision, look at the dimensions of the rooms and spaces you'll actually be using, like the living room, bedroom, bathroom, kitchen, and balcony, in the construction plan. This will help you understand the real usable area and negotiate a better deal with the developer.
4. Property Location and Neighborhood
Consider Location and Neighborhood Before Buying
Sometimes, you might find a property that seems perfect and fits your budget. But it's important to think logically and consider factors like accessibility, road conditions, amenities, construction quality, and nearby infrastructure developments such as schools, markets, and hospitals.
Think about the neighborhood too. Make sure it's safe and convenient for you and your family. Don't be swayed by developers who hype up future development projects that may not actually happen. Visit other developers in the area to compare and verify claims. Take a walk around the neighborhood to assess the pros and cons before making a decision.
5. Connectivity and Access to Important Places
Consider Commute to Work When Buying a House
When buying a house, it's important to think about how easy it is to get to your workplace. Check how close transportation facilities like train stations, bus stops, and highways are to the property.
You'll be traveling to work every day, so you don't want to spend hours commuting. If you choose a place far from work, it can affect both your personal and professional life. Even if the location is beautiful, you might not have time to enjoy it fully.
It's best to find a house close to your workplace so you can save time on commuting and have more time to relax with your family.
6. Re-Sale and Rental Value of the Property
Considering Rental and Resale Value of the Property
When you're deciding on a house, it's important to think about its potential rental and resale value. This applies to both investors and people planning to live in the house long-term.
Make sure you have a good understanding of the location. Look around to see the current infrastructure and find out about any future development plans like schools, highways, hospitals, and shopping malls. Remember, the closer these amenities are, the better it is for your return on investment (ROI).
Having easy access to these amenities will increase the property's rental and resale value in the long run, whether you plan to rent it out or sell it in the future.
7. Important Details to Understand Before Buying a Property
Important Details to Check Before Buying a Property
Before finalizing the purchase of a property and paying any token amount, it's crucial to carefully read and understand all the terms and conditions in the agreement. Pay attention to clauses, penalties, and additional expenses like GST, registration fees, and home loan processing charges.
Check the delivery date and any grace period provided by the builder for possession. Make sure you understand the penalty clauses for delayed EMIs and if there are any hidden charges.
Your home is a significant investment, so take your time to compare properties and thoroughly review all terms and conditions before signing the final agreement. Comparing properties in the same area can help you understand pricing and negotiate a better deal with the builder.
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