Your family, friends, and co-workers must have encouraged you to buy a property. However, you may still be in a dilemma about whether or not it is the right move for you. It is because buying a property is an investment that involves a considerable amount of your savings. Having reservations at the time of purchase is normal. The more you know about the steps involved in buying a property, the less scary the entire process gets.
Certain processes are involved when buying a property, like choosing the right location, approaching the right developer, legal matters, and whatnot. To bring you out of the dilemma, we have prepared a buyer's guide, which will make your property buying process quite easy.
Step 1 - Planning A Budget
The first step is to plan a budget. It will help you search for a property that caters to the budget you have set for your dream home. Moreover, it will be beneficial for you as you will be well aware of how much money will be left each month for your expenses.
Step 2 - Choosing The Right Builder
Get in touch with the real estate developer who upholds a high reputation and offers world-class quality and amazing amenities at affordable prices. You have the full liberty to do a background check where you can check his track record, financial strength, ability to deliver on time, quality of work, and payment terms.
Step 3 - Choose The Right Location
Choosing the location is the most crucial step when buying a property; the site will significantly impact your everyday life. It would be best if you looked at your property's locality. You also have to ensure the locality has all the conveniences that you or your family will need in the future. Choosing the right location makes you consider its accessibility to the rest of the city so that you don't invest much time in travelling. Having a property in a good location will also greatly impact the home's resale value, so make sure you are choosing the right location.
Step 4 - Home Loan
Your previous track record of repaying your debts, income, existing loans or debts, and the loan applicant's age will be considered when checking your home loan eligibility.
The maximum home loan amount that can be sanctioned differs from bank to bank, and the eligibility criteria may vary according to the bank guidelines.
Also Read: Hidden Charges United in a Home Loan
Step 5 - Tax Implications
Buying a property comes with tax implications. If the property's value exceeds Rs 50 lakh, the TDS will be imposed at one per cent from September 1, 2019. Moreover, you will have to bear the cost of the registration charge and stamp duty.
Step 6 - Check If The Property Has Legal Approval From The Authorities.
When buying a property, make sure that the title of the property you wish to purchase is clear. The project has been constructed as per the sanctioned plan, and your developer is presenting you with clearance certificates from the Electricity Board, Water and Sewage Board, and other concerned authorities. You also have to ask for commencement and occupancy certificates when purchasing the property. And the most important thing you have to ensure is that you have the Agreement for Sale and Sale Deed duly stamped, executed, and registered. Apart from these, you must check for documents like Title Search, Khata Certificate, Receipt of Property Tax, and Encumbrance Certificate.
Step 7 - Home Insurance
Having property insurance safeguards the financial future of your property. Not to worry, as the cost is relatively low and provides coverage in the event of issues with the property title, damage, and legal concerns. Selecting the right home insurance will protect your property and ensure a hassle-free property buying process.
We hope that these 7 steps have addressed your significant questions and concerns. And you have gained meaningful insights into the property buying process.
Also Read: Home Loan Insurance- A Simple Way to Protect Your Home Loan