Buying a home is one of the greatest aspirations of many, but it’s not easy to browse the real estate market and settle in with your dream home. It takes a lot of research, patience, effort and compliance with legal obligations to buy a home.
With the arrival of new property dealers and real estate developers in the market, buying an ideal home is becoming more difficult day by day.
How to buy a house without stress with so many things around? If you are thinking of buying a house, you should read this article till the end. This epic guide was designed to help homebuyers make a wise investment, ensuring they don’t face any long-term home issues. So, let’s jump right into the points shared below that should be kept in mind while buying a home.
1. Assess your reasons for buying a home
An important point that you should keep in mind is to decide well in advance the reason for buying the property. Whether you want to live in the property you buy, rent it out or give it to your children should be decided before you start looking for a property. This point is crucial as it will impact the property registration process. If you are buying the house for yourself or for rental purposes, you can have the property registered in your name.
But if you plan to invest in a property and gift it to your children or family members, you need to register the property in their name. Property registration takes between two and three months, so if you are clear about who owns the property to be registered from the start, you can save a lot of time during the registration process.
2. Make a list of the documents you will need to obtain rightful owner status
The legal documents needed to claim rightful ownership are long enough to discourage anyone from buying a home. The chore of separating unnecessary documents from relevant documents is even more tedious. To save much of your research time, we have already sorted out some list names of important documents that you must have to claim rightful ownership of the new property.
Of all the documents available, you must have a letter of allotment, payment challan, original bill of sale, letter of possession, share certificate, share allotment certificate, certificate of completion, certificate of transfer of shares, lease deed in original, certificate of registration, receipt of payment, possession certificate, certificate of absence of contribution, sanctioned plan of the property, etc.
3. Can you finance the entire purchase or would you need a loan?
Buying a house is not easy and requires a significant investment. Therefore, before venturing out on your house hunting journey, always decide how much you are willing to invest. If you are ready to own a dream home, even if it means taking out a home loan from a reputable bank, you must first do the EMI calculations and assess whether taking out a home loan would be the right decision. You can use a reliable online home loan EMI calculator to get accurate EMI projections. If EMI seems out of budget, you might want to settle for a budget and a more affordable home.
4. Always consider buying a property located in a well-served area
If you are looking for urban style homes at a low price, you may come across several projects. The only downside to these projects is that the property is located in a suburban area or in a remote location with less connectivity options. If you have a job in the main town, you wouldn’t want to commute long hours every day between your office and this remote property, even if it’s affordable.
Therefore, to ensure that you are investing in the right property, always look for projects that offer plenty of connectivity options. Also make sure the property is not too far from the main town. Check which roads, highways, schools, markets, means of transport and utility stores are available in and around the house. The better connected the property, the better.
5. Is the money worth it?
The value of what you buy matters a lot. Therefore, before signing any property purchase documents, do some research on your end. Do a comparative study to determine the prevailing market rates for similar property types in the area. You can also ask local merchants or people in the neighborhood for the going rate in the area.
This will ensure that you do not pay an exorbitant price to the seller of the property. You can also calculate and derive an approximate percentage that the same property price might appreciate in the future. All the data collected from these sources will be enough to make the right real estate purchase decision.
6. Perform a background check on the agent and developer
Today, everyone is trying to sell something, so you have to be careful what and who you buy things from, especially if it’s a high-value transaction. It is not a hidden fact that real estate agents and developers want you to buy a property from them, because each sale can earn them money. In such a scenario, you need to be extremely careful about both. If you are considering buying a home, select a property after doing your own market research and don’t rely on the words of the agent or developer. It can save you a lot of time by avoiding making the wrong purchase.
7. Never ignore the cost of home insurance from the cost assessment
A mistake some people make is to omit the cost of insurance from the cost of ownership. The purchase price you pay to buy the house is just one of the expenses. As a home buyer, you will also be subject to other associated costs such as home insurance, property registration, taxes, etc. Of all the associated costs, the cost of insurance is the most important because you will have to pay it regularly. So, if you want to get the right financial results, don’t avoid homeowner’s cost of ownership insurance.
8. Look beyond appearance
Appearance matters when finalizing a home, but it shouldn’t be the only criteria for selecting a property. If you have shortlisted a property, check its basic and structural design, study the map of the property, see if there are any leaks or cracks in the property, ask the agent or developer about the materials used, etc. . You can also check if the structures allow easy renovation at a later date. The more aspects you assess before finalizing a property, the better.
9. Check the property’s possession schedule
You must have heard of cases where property developers took money from buyers but kept delaying possession for one reason or another. If you don’t want to get stuck in a similar situation, you should ask the developer for the ownership schedule. You can determine if possession can be given on time by checking the pace of work at the property site. If the property is complete and ready to move into, you may want to prioritize it over other options.
10. Check the license and approval assigned for the real estate project
No developer can build a property without acquiring the necessary license and approvals from the relevant authorities. In India, for example, RERA is responsible for the development, marketing and sale of all real estate. Thus, you can check whether the selected property you are planning to buy is approved by the Real Estate Regulatory Authority (RERA) or not. If a project has obtained all the necessary documents from the relevant authority, consider it a positive sign and you might consider investing in it.
Get your dream home made easy
Buying a home has both financial and emotional value, so you need to act wisely before investing in a property. When something has value, you must not rush and act with patience to exercise the necessary restraint. To make the trip easier for you, we have listed above all the points to consider before buying. Following each point will take a lot of time and effort, but it will be worth it in the end.