After
taking a decision to buy a home, the first and foremost task to be initiated is
to ask yourself whether you are sure to buy a house now. In fact, purchasing a
house comprise of many a step and is a process which is extensive.It is not the
end-in itself after spending money and finalizing the house to be purchased.Besides making search for a suitable house while heeding to the advice
of well wishers and paying attention to the several tips from family and
friends, the procedure for purchasing a house involves legal and financial
aspects.
To
discuss on the very first point, one has to finalize whether now is it the best
time to spend money for purchase of a house or not. A House can certainly
assure a higher return, but all we need is to choose the right time. One has to
be doubly sure as to whether we can afford to take housing loan, and if so, to
verify the prevailing rate of interest with competitive Bankers/Financial
Institutions and finalise the loan amount after calculating the EMIs and the
repayment capacity.
The
steps that are inevitably to be borne in mind, in the process of buying a house
are:
1.Planning:
You need act cool before taking a housing loan. First you need to be sure if
you are purchasing house for your own residence or for financial objective,
i.e., to lease it out, because the decision would have significant importance
based on the objective of purchasing a house.
Thereafter,
you have to finalize which type of property you would like to own i.e., whether
a residential apartment or an individual house, because the impact on such
decision will be huge with appreciation and/or depreciation on the value of
such property in the subsequent period.
2.Margin
Money: You must pool-up money so as to be able to
contribute your margin money. Loan from Bank or Financial Institution would be
to the 90% of the value only, leaving thereby to make your contribution for the
balance 10% amount. However, if you are
able to pay more amount towards your margin money, then the pressure of financial
loan will be comparatively less and you can acquire financial loan for a
smaller period, or avail less amount as loan for a longer period, depending
upon your capacity to repay either the equated monthly instalments or any other
mode of repayment.
3.Know your requirements: If you are purchasing house for own residence, and then be sure
of your specifications. Keep factors like neighborhood, facilities, industry
value and possible value appreciation later on. Rather than purchasing a nice
looking house, you should see that the location having easy connection to your
office. Resell value gets a boost when you buy a house at a place where there
are chances of upcoming facilities/development.
4.Location
search: You may have to face unwanted attention from
naughty elements of the community. You need to be careful about selecting the
area of the property. Examine the cop’s history of the area and the
neighborhood before determining to buy the property. Also, have a look at the
structure of the property effectively so that you can be confident of the
precautionary features.
5.Related costs:
Paying the down payment and per month EMI are the primary prices you will have
to keep in mind while purchasing a house. However, there are other relevant
expenses that you must keep in thoughts while purchasing a house. These include
servicing expenses, enhancement expenses, servicing price, public prices and
taxation, etc. Also, broker expenses and bills like water and electric bill
should also be kept in watched.
6.Verification
of title deeds: Do not forget to get
verified and confirm the title of the property through search of legal records,
preferably by a Lawyer dealing with Retail estate property matters, before
purchasing the property. It would create
factors easier for you. Verify the records given by the developer effectively,
to make sure that there are no litigations involved with the property, before
finalizing the deal.
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