“A man travels the world over in search of what he needs and returns home to find it.”
Home! A place to call your own, a place where everything seems possible and safe is not just a word. Everyone has a dream home, how they want their place to be, how they want the living room to look like, what kind of bed they want in their room and even what colour they want on the walls.
Much as it is tempting to rush into buying a house, patience and timing are crucial. As first-time homebuyers, we can follow some simple tips to ensure that our first home buying experience is smooth and hassle-free.
Cheap doesn’t necessarily equate to good
This is probably the most common mistake a first-time homebuyer can make. When looking for a location, the typical Indian concern is the price. While price is a factor, that need not be the pre-determining reason behind buying your home.
Buying a house in a far-flung area may be cheap but can come with other costs, including long commutes to the office, children’s school, weekend shopping, social visits, etc. Consider whether the hassle of a long commute is worth the bargain you think you are getting.
Documents are the key
Also, while buying a plot, during the purchase agreement, check the title deed of the land to confirm if the builder has the full right to it. Apart from this, in case of buying a property in resale, ask for previous property tax receipts from the seller along with other bills. This way, one can ensure there are no pending bills.
The land use zone of the plot or the residence needs to be verified from the Master Plan of the city or town. A map should show the compatibility of your plot in the residential zone marked in yellow under UDPFI guidelines. Moreover, the entire layout has to be approved by the development corporation and the local body of the city.
Factor in all the costs
Factors such as internal/external development fees, preferential location charges, parking/club/statutory charges, property tax and service tax, escalate the total cost. Thus, the final cost needs to be checked with all the variable costs. Under the fixed costs that a homebuyer has to pay, several indirect taxes, including value-added tax, excise duty and service tax that amounts to a tax outgo of about 11%, excluding stamp duty are covered.
Don’t forget your credit score
Finally, you have done all the above, and you are just set to complete the application for a home loan. Don’t rush this process. Don’t always settle for the bank that seems to be offering the lowest rate of interest. Shop around, do some research, and find out what the fine print could be. But one thing to keep in mind while applying for a home loan is the credit score. The better your credit score, the better your chances to get the desired loan.
Finally, don’t forget to get home insurance. After all, you have to safeguard what’s rightfully yours. Insure your home and ensure that you have peace of mine.
Happy home hunting!!
This article was originally published on www.thehindu.com dated July 08,2017
