Buying a new home is a big-ticket decision that is supported by a number of factors. This is like a dream come true for many, especially in India where many people nurture this dream from a very young age. And, the decision to buy a home is something that can’t be done outrightly. Years of planning and monetary savings are combined that help a person arrive at his final decision. Therefore, it becomes important for homebuyers to consider each & every aspect of property buying before signing off the deal.
With so many properties available everywhere, sometimes it becomes difficult for the homebuyer to keep a check on important things. So, here are a few things that usually people look at before buying a new house.
1 Apartment’s Carpet Area – In most scenarios, real estate builders mention super-built-up area in their property brochures. This built-up area is inclusive of various areas like lobby, staircase, etc. The carpet area of a property could actually be 30 percent lesser than the super built-up area. For example, the actual area of a 2-BHK 1,000 square feet flat could be only 700-750 square feet. According to property experts, it is recommended to pay attention to the carpet area, the area available within the walls. Before you get into buying a new home, it makes sense to first clearly understand your size requirement and check the carpet area of the flat or apartment you are looking to buy.
2 Location – Once you are done with the apartment size, the next thing to look at its location. The location should be the one that is easier to access by your private vehicle and public transport. Check for public amenities like schools, hospitals, highways, markets, and other services that you may need on a frequent basis. So, pay careful attention to this aspect before buying a new home.
3 Payment Plan – As you are more likely to take a home loan to purchase the property, having detailed knowledge about the payment plan is absolutely necessary. There are different types of payment plans available to choose from like down-payment plan, flexi-payment plan, construction-linked plan, and possession-linked plan. According to property gurus, one should pay core attention to a payment plan before moving ahead as this tends to make a long-term impact on one’s finances. The buyers must also need to keep in mind that any late payment or default on the side of the builder in such plans would influence their credit history.
4 Home Loan – In the present context, you may come across different lenders who might be more than happy to offer you a home loan. Make sure you check the total cost being levied like loan processing, foreclosure criteria, any applicable taxes, income tax savings, and others before finalizing the deal. Also, don’t ask from just one bank but take quotes from different banks and compare their deals in detail. If you any known person to you have recently bought a property, you can consult him or her for a better understanding. It is better if you manage to pre-approval of loan for the property you’re interested. This might help you get a great deal.
5 Land Record – The land on which a building is built is of extreme importance. For a home buyer, it is necessary to do thorough research about soil quality and land topography. The plot should not have any pending dues and must be registered with the corresponding land authority. Before buying a new house, the title deed must be checked and verified. The deed contains all details on the rights, ownership, and obligations related to the property.
6 Builder Verification – As it is the builder who builds your house, choosing the right one makes a big difference to the value of the property. A property completed by a reputed builder always tends to be a bit pricier than an ordinary builder. This is because of the build quality and builder reputation. So, prepare a list of various builders in your area and check the projects they are coming up with. The idea is to choose the one matches to your requirement perfectly without costing a fortune. If you are interested in a 3 BHK mid-level home, there is no point in taking extra financial burden by choosing an ultra-luxurious property that would cost a lot more. Always remember that it is you who will pay the EMIs for the rest of your life.
7 Approval and Licenses – Once you make up your mind on a particular property, do check the builder’s document like commencement certificate for the project, environmental clearance, and sanctioned structural layout. Don’t forget to ask for the position of the land title and verify if the builder has purchased the land or possesses just development rights for it.
For example, consider this list of documents you need to inspect:
(a) Title Deed: Check whether the builder has complete ownership over the land. While buying vacant land, check the title deed of the land to verify if the builder possesses the necessary rights. For more clarification, you can seek the help of a lawyer who can inspect the underlying property deed.
(b) Release Certificate: If you are buying a resalable property, keep in mind that it may have been promised to secure a bank loan. In such a scenario, you will need to obtain a NOC certificate from the respective bank, which will confirm that the loan on the land has been fully repaid. Check Encumbrance Certificate: it is very necessary to confirm that the land doesn’t have any pending legal dues.
(c) Verify land usage: Confirm the land-use zone as per the city master plan for the property land. You can choose to obtain the plan from the local body office of your region.
(d) Local Approvals: Do ensure that the entire layout has been sanctioned by the development corporation and the local body of the region.
(e) Property Tax Receipts: It is a resalable property, try to get previous property tax receipts from the seller and other bills.
By taking into account all the above-given elements, you may end up buying the most appropriate property withing your set budget.