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Home Buying Guide For First Time Buyers

Owning a house has been a quintessential Indian dream. The advent of 21st century has been favourable for first time home buyers as there has been growth in economy as well as increase in disposable income. But still buying a house could be a daunting task. Here is a simple guide that highlights various aspects involved in buying a house

Finance

It is essential to plan your finances well before you decide to buy a house. The most ideal option to finance your acquisition is through ‘Home Loans’. Choose a home loan with minimum pre-EMI period and % of loan to interest repayment to get the maximum benefits. It is essential to set aside some funds for hidden costs in the form of

  • Registration fees
  • Car parking fees
  • Infrastructure fees
  • Maintenance deposit
  • Property tax
  • Service connection

Government Benefits


The Government of India has announced many subsidies for First Time Home buyers. The Pradhan Mantri Awas Yojana scheme announced by Prime Minister of india encourages first time home buyers by giving different subsidies on interest rates based on their annual income

  • Annual income below 6 lakhs - 6.5 % on principal of 6 lakhs
  • Annual income upto 12 lakhs - 4 % on principal of 9 lakhs
  • Annual income upto 18 lakhs - 3 % on principal of 12 lakhs

The net benefit to all three categories is 2.4 lakhs while EMI will be reduced by Rs.2,200.

Finding the Right property


Choosing between an under construction project and a ready-to-move-in house is always a confusing task for first time home buyers. This decision will have to depend on your financial status.
  • If you have the required finance then a ready-to-move-in property is your ideal choice as it protects you from cost overruns and pre EMI payments.
  • If you are looking for a less expensive option, then choose an under construction project as it comes with added benefits and eases your financial burden. 
Scalability            

 Buying a house is a one time investment. Make sure the house you buy is of the right size for your family as well as have scalability options for expansion in future.
 
Location            

 Location not only decides the future value of your house but also the quality of your life. It should suit your lifestyle and budget.Choose a house in a well-connected safe neighborhood and at close proximity to all your daily needs. It is also essential to be aware of the future development in that area.

Builder’s Credibility


It is important to check the credibility of the builder before buying a property. Visit the past projects of the builder, talk to their clients, understand their commitment towards quality and timely delivery and also know about their future projects.


Delays  


The delay in possession of your house adds to your worries as well as the interest that you pay towards your home loans. The RERA Act by Government of India brings a solution by ordering the builders to pay interest or compensation for the duration of the delay in the project.

Legal Advice

It is imperative to take the advice of a legal expert to check the legality of the builder as well as every bit of the fine print in your agreement. There are many documents which the buyer needs to verify before buying the property. Some of them are
  • Sale deed
  • Share certificate
  • Society documents
  • Sanction plan
  • Encumbrance certificate

To be continued with further details on Legal.

by Bharathi Homes & Realtors Pvt Ltd | 14th March, 2018

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