8 Important Things You Should Know While Buying A Home
All set to buy your first home??? Buying a home is perhaps one of the most crucial decisions that one takes in its lifetime. And why not, after all, you are putting everything that you have earned till now. But before you move a step further in your housing hunting expedition, there are some basic as well as necessary rules that you should be aware of, because at Gateway Propmart knows it well that even the smallest loophole you left now will bury all your dreams deep inside the ground. So, just read this post carefully as it something that will really gonna help you in finding a right property.
Approval and Licences
Once you have finalised the property, now another job to be done is to check and verify all the documents, certificates and paperwork related to that property. Check the status of the land title, and as if the builder has purchased the land or have development rights. Here are some of a few documents that you should check while buying a home.
- Title Deed: These are the documents to verify if the builder has the property right or not.
- Release Certificate: If you are buying a resale property, you should as for the release certificate so that you can check that all the loans on the property have been repaid and it is free from any financial loan.
- Encumbrance Certificate: It is a report issued by sub-registrar office after doing verification of the documents. It is a proof given by them that the property is from all encumbrances like the lease, mortgage, restriction or easements.
- Property Tax Receipts: Before buying a resale property, check all the property tax receipts so that you can stay ensured that there are no bills pending on it.
Verify The Builder
The fate of your finances totally depends upon the developer on-board. Even after trying your best from head to toe to search the right location, all your efforts can go in vain if you meet a wrong builder. So, leave no stone unturned to check the past track record of the builder. Check state RERA website and check his past record as a builder. Ask him, if he was able to deliver his pas projects on time or not. Enquire about the time he took to complete those projects to cross-check if he will be able to offer the possession of your home.
Also read: Noida’s Real Estate Market Before and After RERA
List of Banks Financing the Project
As many builder and developers end up with hundreds of unsold inventories and thus fail to repay the bank loan. So, banks have become very particular and stern in offering loans. If a number of banks are coming up to finance the project, there is a strong chance that the builder is genuine and ensure to offer timely possession.
Calculate the Total Cost
There are numerous occasions which come in the limelight where the builders and brokers quote only the basic price of the unit and not mention other charges, such as preferential location chargers, internal or external development charges, club membership, parking charges, among others. So, before you land on any decision, ask for the final price from the developer.
Buy V/S Rent
It is a common practice among home buyers that they purchase their second home not because they need it but to earn some sort of rental income. Some home buyers also think that rent yield from the second home will be used to pay the EMIs. Experts say that the rent you may earn from such properties will be not more than 3-4% so you will have to pay for the rest of the EMI. Apart from this, who knows how long you may take to find a tenant and your property will have to remain vacant.
Also Read: When to Rent and When to Buy?
Ask About the Future Developments
The amount of appreciation is directly proportional to the amount of development that is expected to happen in that locality. Metro, rail and other infrastructural developments in the area are big factors that can yield high rent as well as profit on your property.
Size of Apartment
Most of the time builders pitch the customers only for the super built-up area, which also includes common areas in the complex, such as parks, staircase, lobby, etc. Usually, the carpet area, which is actually the usable area that can be used by the occupants is around 30% lesser than the super built-up area. So, always ask of the carpet area before finalising a deal.
Choosing the Right Payment Plan
There are a variety of payment plans available in the market, such as flexi payment plan, down payment plan, possession-linked plan, subvention plan, and construction linked plan. Each plan has its own features, attributes, pros and cons. So, choose your financial plan wisely before you make a wrong choice. If possible, consult an expert or someone who has recently purchased a home.