15 Things to keep in mind before Purchasing a property

Several factors need to be kept in mind while purchasing a property. Mentioned below is a complete home buyer checklist that contains all the necessary points you must consider to make an appropriate property-buying decision:

1. Set a Budget

One of the first things on your checklist before buying a flat is the budget. This is the stepping stone for any big investments and requires proper planning. To begin with, make a note of all your expenses and sources of income to compute how much amount you are likely to be left with each month after bearing all the essential costs for a comfortable living. Also, skim through your savings and other investments to assess the amount you can manage for a down payment. Now, set the budget accordingly.

2. Arrange the Finances

If you are planning to purchase a plot or an independent house, then the down payment would be huge. It is suggested to manage the funds before beginning with the property hunt to ensure you are on the right track. It is easier to get a home loan for buying an apartment however a lot of documentation and other formalities are involved in the process. It is best to consult a loan officer to get a fair idea about the loan you are eligible for, the rate of interest as well as the required property documents checklist. This will help you understand if you will be able to manage the monthly instalment easily or not.

3. Choose the Location

Choosing an appropriate location should come next in your home buying process checklist. Properties at certain locations prove to be more lucrative over time as they appreciate at a good pace. However, some locations do not develop as much and thus the rate of the property remains largely stagnant. The rent derived also depends on the location. Affording a property in a well-developed area is difficult for many people. Therefore, it is wise to choose the next best option – a locality that is likely to prosper a few months or a year or two down the line. You must do a thorough check and assess the scope of growth before investing.

4. Construction Quality

Whether you are purchasing an independent builder flat or one that forms a part of a residential society, it is crucial to assess its construction quality. Many builders construct houses that appear attractive from the outside, but the quality of material used in their construction is poor. Do not fall for such constructions.

5. Water and Power Supply

Even a lavish, fully furnished house cannot give you comfort if there is a scarcity of water and frequent power cuts in the locality. This can be extremely annoying especially if you choose to live in an independent home. This is because you won’t get any power back up and inverters cannot take up load for long hours. Thus, one of the first things you must check is the water and power supply in the area.

6. Need for Furnishing/Renovation and the Cost Involved

Whether the property requires furnishing/ renovation or not is another point that needs to there on your checklist before buying a flat. Some flats are semi-furnished while a few are fully furnished. The cost of these flats may be higher compared to raw flats however investing in such a property can save you time, effort, and money spent in dealing with labourers, contractors, and architects.

7. Parking Facility and Other Amenities

At the time of choosing a house, it is imperative to check the availability of parking spaces. If you opt for a flat in a residential society then the parking facility mostly comes as a part of the deal. You may, however, choose to purchase an extra parking space depending upon your need and budget. However, if you are planning to purchase an independent house then you should take a closer look at the available parking spaces before finalising the deal. Also check, whether essential amenities such as a school, park, hospital, bank, gym, and market are located nearby.

8. Traffic Situation

The traffic situation in and around your locality during peak hours is also an important factor that requires consideration. Whether you are planning to reside in this property or rent it, considering this point is very important.

9. Builder Reputation

Unfortunately, there are many builders in the market that make false promises. Many of them do not deliver the property on time while others do not cooperate when it comes to completing property documents, some others do not offer good quality construction, and so on. Thus, it is important to do a thorough background check to know the builder’s reputation before finalising the deal. It is always suggested to go for a builder who has goodwill in the market.

10. Registration and Stamp Duty

If you think that you need to gather funds only for purchasing the property then here is a revelation. You are required to pay the registration charges and stamp duty too. A substantial amount needs to be paid for the registration and stamp duty. Find out how much you are expected to pay based on the location and property you are planning to purchase. This point should thus form a part of your home buying checklist.

11. Additional Cost Involved

It is best to seek professional help when it comes to purchasing a property. This helps avoid a lot of hassle and saves time. However, you need to pay a substantial amount to the real estate agent/ agency. You may also require paying money to home inspectors, notaries, lawyers, and other such professionals. This expense must also be considered. If you are opting for an independent flat then you may have to spend on security services also. Besides, property tax needs to be paid annually.

12. Legal Guidance

Since purchasing property involves a substantial amount as well as risk, it is important to seek legal guidance in this matter. You must know about all the laws and legal documents required for the purchase of property to ensure a smooth process and avoid any issues later.

13. Tax Planning

You can avail of tax benefits on your home loan however it is important to understand the applicable terms and conditions to make the most of this benefit.

14. Check the Resale Value

This is another important point on the checklist for buying a house. You must pay special attention to the resale value if you are buying the property for investment purpose rather than inhabiting it and plan to sell it sooner or later.

15. Property Insurance

It is suggested to get insurance for your property so that you have something to fall back on in case it incurs any sort of damage. You will come across various home insurance policies from different banks/ finance companies. You must understand the cost and formalities involved before purchasing the property.

Also Read : Home loan interest rates in India