To Buy a House in India is a Big Deal
To buy a house in India is probably the biggest dream for many Indians. Some spend most of their earnings that they save throughout their lives to buy a house in India, and understandably so. A house provides security and represents prosperity. A house is a symbol of status and it becomes a home for your parents, your better half and your children.
It is also a major capital investment that appreciates over time. It can become a source of profitable income over time due to ever rising real estate prices. It is also a source of regular income, through rent. With every great investment comes inherent risks and you must do it wisely in order to avoid any sort of fraud. There are lots of factors to consider when you start your search, and we’ve listed out 10 hacks to help you out.
Top 10 hacks for first home buyers!
1. Decide On The Type Of Property
Yes! It is clear that you want to buy a house in India. But there are several types of residential properties in India. You even have the option to buy custom properties built according to your needs. From villas to apartments and row houses to bungalows or farmhouses, there is a lot to choose from. You must make your choice according to your budget, locality and other preferences. You can opt for ready-to-move-in properties that are already built, and you can view them before you buy.
If you’re an NRI buying property in India, there are a few limitations. It’s best to stay informed, here is all you need to know: Types of properties an NRI is eligible to buy in India
A major factor which will determine the type and locality of your property is your budget. Although you are buying a home for the first time, you must have been saving for it for years. When you buy a home, it provides you with a sense of security, satisfaction, shelter, elevated social status and you can even expect a better return on investment in the future. You should decide on a budget and then work towards achieving it. It’s advised not to spend more than 60% of your savings at one go.
3. Check the Neighbourhood
Your neighbours are your second family. They have a huge impact on your lives, especially if you have kids. You should choose a locality that is clean, safe and suits your standard of living. Mostly, it is wise to choose a locality where you can get educational, medical and recreational facilities as well as supermarkets in the vicinity. Ensure that you choose a good locality for a hassle-free and peaceful living.
4. Plan The Finances
Buying a home is a significant financial commitment. You should ask yourself a few critical questions such as: How much amount will you save on your own? How much are you going to borrow from friends or relatives? How much amount are you going to take as a loan from a bank? You must decide on all of it. Get firsthand knowledge of the RERA (What is RERA?) and GST laws. According to the latest taxation rules, it is quite easy for first-timers to buy a home of their own at low-interest rates. Do not forget to take advantage of the Pradhan Mantri Aawaas Yojna. Research well about different offerings of financial institutions and choose one wisely. Also, check your credit score before you apply for a home loan.
5. Choose The Type Of Home Loan
There are two types of home loans offered by financial institutions in India. One is the fixed type which has a fixed interest rate for the entire tenure of your loan. The second is the floating type home loan which has different interest rates throughout your loan period. Generally, interest rates are higher for fixed interest rate loans. You should choose one according to your financial situation when you plan to buy a house in India.
6. Calculate The Return On Investment
Whether you are planning to live in the property or rent or sell it, you must calculate the returns well in advance. Pick the location and type of property wisely as it impacts the value of returns to a great extent. Do not forget to check the scalability aspect.
Check for RERA registration of the developer and all the legal documentation associated with the property. Check the registration and license number before you invest. Also, check the NOC and the carpet area that you will be getting.
We have a comprehensive article on all documentation needed when you buy a house in India: Documents to keep handy when you buy a house in India
8. Understand What Common Areas Are
You should understand what common areas are before you go on to buy a house in India. Some builders may have a different charge for the common areas which will not be included in the carpet area cost.
9. Choose A Rewired Developer
As this is your first home, it is recommended to choose a reputed and trusted developer to avoid any sort of scams. Check the credibility of the developer before you sign any deal or make any payment.
10. Be Prepared For Delays
In high rise projects, delays are inevitable in India. Few projects get completed on schedule, and so, you must be prepared for delays. Keep a cushion of at least 90 to 120 days for your convenience.
These are some tips and hacks that will help first time home buyers in India buy a residential property without any hassle. If you are planning to buy a house in India but not live in it, hiring a property management company to handle its maintenance and management is the next hack we have for you. Here’s all you need to know: