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Before you do any leg work you must
ask yourself, “ How much can I spend ?”.
Depending your requirement and number
of family members, you can decide on the living area and number of rooms, also depending on your preference and pocket you can
decide between a flat and an independent house.
Flats have certain advantages like
sharing of land cost and
security and other common facilities cost , which can be divided
among the members .On the other hand you have the advantage of modifying or
constructing the independent house.
Figure out how much money you are willing to spend on house. Most of us would need to
supplement with a loan. Calculate your income level and living expenses. Take
into account your future considerations such as children, add-ons, amenities, fix-ups,
rising income levels and so on. Also, budget for some exigencies.
You can use simple formula :
Income minus present lifestyle = potential mortgage payment.
Your home is certainly worth sacrificing
a few spending habits but not worth mortgaging your entire future.
It is advisable that
when you set a budget for buying a property, you reduce it by 20-25%.
Typically, brokers will show you the properties, which are on outer limits of
your budget and temptation to overshoot can be high, but please remember that
there will be many leakages from your kitty along the way. There can be hidden
costs and some unplanned expenses like cost for furnishing the house, some
minor repairs etc.,
So, it is a good idea to work with a
price lower than your limit because ultimate costs invariably tend to overshoot
our estimates.
Once you are clear as to what you can afford , you can start visiting the prospective homes for
evaluating them in detail.
Property Inspection:
It is advisable not to take an emotional decision but let your
head rule over your heart.
Inspect the prospective properties
thoroughly, at different times, everything from floor to wall, from
light switches to flushes, windows and doors, locks and taps. Look out for any
leak in the water supply by turning the water mains on.
Imagine the property as it might look
when furnished. Typically, a vacant house looks spacious than it is, when
furnished
Take the measurement of your furniture
and compare it with dimensions of rooms in the prospective property, otherwise
you may have to redo your furniture.
See at least 8-10 properties before
you make a final decision. After perusing a property, it is advisable to write
down on piece of paper, how many of your needs the house fulfills and also
decide if the neighbourhood / surroundings is right for you. Start the
elimination process.
After you short list the property
, it is advisable to refer to check following points. Although this list
is not exhaustive, it will help you in making the right decision.
·
Please scrutinize all original
documents. The title of the property may be in single or joint ownership basis
.In case of any difficulty in getting the papers , a
certified copy can be obtained from local sub-registrar’s office on payment of
nominal fee.
·
Refer the documents to a lawyer who
can certify the clear title.
·
Obtain ‘No encumbrance certificate’
for the past 13 years to ensure that no mortgage has been existing
on the property. This will also enable you to ensure that the title belongs to
the rightful owner who is the seller.
·
Incase of sale by a third party viz. Real estate promoter, please
check whether the third party is absolute owner or holds a power of attorney to sell the property. It is
advisable to buy from the reputed builder.
·
Obtain the required clearance under
the Land Ceiling and Regulation Acts.
·
Please check if the price quoted is in
line with the prevailing market rate.You can take the help of reputed consultant for arriving at this.
·
See the approved plan.
- In Short, please ensure all regulator (MMDA-CMDA-DDA) requirements are met before making the final payment to the promotor - lest the owner is responsible for the deviation.
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