Saturday 25 April 2015

PROCEDURE WHILE PURCHASING A HOUSE


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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