5 steps to choosing the best property

We list the 5 most important factors to consider when choosing your dream house.

Deciding to buy a house this year, you embark on a long search that confuses and daunts you by turns. You are left wondering how to find the right home – are you certain that you are conducting the house search correctly?

Consider these factors when you review a property that you wish to buy:

  1. Location, location. The key to finding the best house is to find the right location. The right location is one that offers proximity to places of work and education, transport options, places of recreation and shopping, hospitals and malls, etc. However, the location metrics change if you are a work-from-home individual who does not wish to stay in the heart of the city.
  2. Is a loan against the property available? While you may find a beautiful home, it is important to check the feasibility of buying it. Some properties and localities are blacklisted by lending institutions, and you cannot get a home loan against them. A certain locality may lie on an earthquake fault line, or have water supply problems. Or a certain building may be older than 40 years. Or the property you have selected may have unpaid home loans or claimants on it. It is better to check with the lender with a copy of the house’s papers before proceeding with the negotiations.
  3. How much do you have to spend on the house after moving in? If you are buying a resale property, then you might have to spend a lot of money in redesign or restoration for an old house. Do note that you can get a home loan for improvement from leading entities like Punjab National Bank Housing Finance Ltd. (PNBHFL), at competitive rates of interest. If you are moving into an under-construction home, you will still have to spend some money if you want the developer to change the electrical/plumbing plans, or include more storage lofts, etc.
  4. If your finances allow the purchase…Most lending institutions offer up to 80% of the house’s value by way of a home loan. The remaining 20% must come from your own resources. This 20% only accounts for the house’s price – you must also set aside money for the down payment, stamp duty and registration fees, loan application and processing fees, pre-EMI, society transfer fees, etc. A diligent check on your finances will help you get a clear idea of where you stand on the home loan front.
  5. If the price is right. It is currently a buyer’s market, what with realty rates at a standstill and every developer having scores of unsold flats in their inventory. When you do your research about the per square foot rate in the locality of your choice, do the calculations to see how much the reseller or developer is charging you for the house. Under the RERA Act, you should pay on a carpet area basis and not built up or super built up area basis. If you feel that you are being overcharged, you should renegotiate the price or look at another property. If the price is right, then you can proceed with a home loan application.

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