High disposable income and easy availability of finance has made buying home affordable in urban India. The more you know about the home buying process, the more you save on money and time and lesser the hassles in the process.
So what makes you a smart home buyer?
Let us run through the following pointers to help you be one.
- Timing: A smart buyer would know what time is suitable for him to invest. It is your personal financial position that has to be the decisive factor. A slow market would not be the best time for you to invest in property if you have some financial crisis. Similarly, there is no point sitting and waiting if you have enough finances, if prices are comparatively high at that time.
- Budgeting and Financial Planning
Plan your EMIs keeping in mind your monthly household expenditure and some amount for contingencies.
- Need Assessment
For home buying, choose the property as per your need whether it is for raising your family, capital gains, rental income or maybe you would want to move closer to your work place.
- Research Locations
High growth area with better amenities such as connectivity to business areas, proximity to educational institutions, malls and hospitals gets you a better deal in the long run.
- Builder’s credibility
This essentially means assessing the developer’s past projects, quality of construction and future projects.
- Legal Due Diligence On The Property
You must ensure that the builder has completed all legal formalities such as sanctions, plan approvals and agreements
- Know what is sq. feet, built up and super built up area
The carpet area is the space available for flooring a carpet, the super built-up area is the carpet area including the wall, balcony space and other areas. The super built up area is the super built area plus the corridor space including lobby, lifts, staircase etc, garage and alley.
- Negotiation with builder
Sometimes builders offer promotional discounts during festive seasons or if their sales are slow. Don’t lose out on that.
- Credit Score
Know your credit score before applying for loan. Credit bureau like CIBIL give you credit report if you apply online.
- Pick the best lender
With plethora of options available do a thorough background research and pick the best deal based on better rates, processing fees turnaround time etc.
- Interest Rate Options
Fixed or Floating: With Fixed option interest rate remains constant during the entire loan tenure and for floating loans it changes with market fluctuation.
- Payment Plan
Construction linked Payment Plan: Here you are paying an initial booking amount upfront while the rest is linked to construction milestones.
Time linked: You pay according to a set timetable, whether the construction is on time or not even though the property has been delayed.
- Be an informed buyer
There is no one-size fits-all theory when it comes to home buying. What suits you may not suit me. So while you must listen to expert advice, but at the same time be sure of you are looking for. Do not enter the territory without doing any prior preparation. Good luck!