The Buyt Desk
Whether to buy or rent a home depends on two most important factors – your budget and availability of ready finance. Note that interest rates are increasing rapidly and so are rentals in a few markets. For example, if the rental budget is Rs 20,000 per month and the rents in your region have shot up to Rs 30,000. But when you consider a locality that is 15km away rent could be still around Rs 20,000.
If you don’t have any problem purchasing a home that is 15km away from your present locality and you can easily pay about INR 60,000 as monthly EMI, then you can think about purchasing an apartment.
Cumbersome down payment
Once you are sure that you can buy a house, figure out how much of down payment can you pay upfront. It’s recommended to pay up a significant amount as a down payment. It depends on your age. The more the down payment is, the better it will be. The reason is that by paying more down payment you can decrease the burden of EMIs.
Under-Construction or Ready-To-Move – Which Property Should I Consider?
Determine whether you would like to purchase a property that you can immediately live in or can you wait for three years. The best option is to choose ready-to-move property. You can prefer under-construction property if your budget is a bit stretched. But be sure it must be 80% complete. The reason is that there will be a reduced risk of getting the project delayed. Alongside home loan EMIs, you would also have to pay rent for the apartment you live in. Confirm if the property has got an occupancy certificate from reliable authorities and if it is being registered.
When you don’t have enough funds and you don’t urgently need a property, a soon-to-be-ready project by a reputed builder is the way to go. You will get multiple options while walking this way. You can choose the house number, floor, garden, or terrace according to your choice. However, there is a possibility of non-completion.
Should You Buy?
You can consider purchasing a property if you are employed and have money to pay 25-30% of the apartment cost. Note that banks will just fund 80% of the cost. However, if you already have a home, you can think about upgrading to a spacious building. Prefer a plot by a Grade A developer.
Consider These Things When Purchasing a House
Be sure that the seller’s title is clear and doesn’t have any burdens. However, if you are buying a secondary purchase, examine all the property-related papers for the past 30 years. If these papers are not available, make sure you evaluate documents from at least the last 12 years.
For a new house, check if the layout plan is approved by municipal authorities. Before you take over the property, confirm that it has an occupancy certificate from the competent authority. The absence of this certificate will lead to the risk of the property being not registered.
The property must be registered under RERA and you should verify whether all its provisions have been fulfilled. Remember that even if the property is RERA-registered, do not buy it from a builder who has debt. Determine the total ownership costs including stamp duty, interiors, parking charges, registration charges, etc. Also, keep into consideration the monthly maintenance charges that you might need to pay.
Keep 3-4 options aside and do not stick to a single property. Explore more to choose the best. From the selected four properties, at least a single developer or seller in the resale market will reach you. Be ready to negotiate hard or simply walk away saying No.
Don’t miss to consider the appropriate location. Make sure it has proper road connectivity, sufficient shops to meet your daily requirements, and nearby hospitals and educational institutes. Also, keep into account the distance to your workplace and the modes of transportation available. Don’t purchase into high-tech no-man’s lands.
