With Dussehra and Diwali known to be propitious for the purchase of new assets, now may seem like the best time to buy your own home. While you say hello to exciting offers and festive deals on property this year, stay prudent about your finances and your investment. Take a look at this checklist of 7 crucial factors to keep in mind when purchasing a home this festive season.
Pay Attention To The Price Per Square Foot Over The Total Price
Property search can be exhausting, and when you’re tempted to create a shortlist based on price, don’t! Instead of total price, compare houses based on price per square foot. Take important factors like infrastructure, connectively to the airport and business centres, amenities, and neighbourhood into account too. Now you can better compare homes and their value.
Think About Your Comforts Tomorrow And Your Pocket Today
Saving on your expenses is great, but compromising on your future needs isn’t a wise move to make. While deciding on your new home, are you certain it has all it needs? Will you need to look for a bigger home once your kids grow up? Are your parents going to be staying with you in a few years? Keep your future goals in mind and buy a home that can cater to them with ease. However, this doesn’t mean you end up paying EMIs that are drastically higher than what you can actually afford each month. Ensure you can address your fixed and varied expenditure and pay your home loan EMI without feeling a pinch. You can opt for a longer tenor, an increasing EMI system, or a EMI holiday to ready your cash flow before you sign up for a home loan.
Check The Blueprint Not The Sample Flat
An aesthetically enhanced setup is meant to lure prospective homeowners just like a mannequin for a fashionista. While the sample flat may look luxurious with its grand view, embroidered furnishings, and exposed brick wall, your apartment may not. Get a clear picture of the home you’re setting up to buy by examining the blueprint and layout on paper. Ace this task despite being a rookie by getting professional help from an agent or expert if you need to.
Trust A Cash Discount Over Other Perks
With festive offers come free gold coins, electronics and appliances and a range of other freebies. While these may sound great, choose an offer that makes your purchase easier on the pocket. It is much more advantageous to buy a home that has the GST waived off, lowers your registration fees, doesn’t require you to pay maintenance fees for the first 5 years, or offers a lower down payment. Usually, you can get up to a 20% discount on your home’s purchase price, especially in the festive season.
Don’t Give In When You Are Pressed To Make A Decision
Your broker or the agent showing you a sample flat may emphasise on the fact that the project just has four flats let unsold. Avoid a hasty decision because of the same. Investing in a home is a big decision and an expensive affair. So, take your time to review offers and make a purchase only when you are sure. Most offers may remain the same even after the festivities, so it is more important for you to
analyse your budget, choice of property choice and the total cost before making a decision.
Examine The Loan Tie-Ups But Don’t Bank On Them
Properties with loan tie-ups can help you get a loan easily. This does not mean that it will be affordable. Remember that buying a home means shelling out quite the amount. You will be paying EMIs alongside stamp duty and registration charges, broker’s fees, annual maintenance fees and the down payment. So, it is in your best interest to choose an affordable home loan with a nominal interest and other beneficial features that make repayment easier and more convenient.
Make Sure The Builder Is Authorised By RERA
It is mandatory for all commercial and residential properties to be registered with RERA, though its implementation is taking some time to trickle through smaller cities. Buying from a builder authorised by RERA helps you safeguard your investment, provides a safety net, and equips you with various rights as a buyer. With RERA in action, there is now a standard calculation of carpet area, which means you are sure of the price you’re paying for a particular amount of space. You can also count on the timely completion of property if you are considering a home that is still under construction with a full refund or compensation with interest in case your home is not completed by the agreed date. You can also get defects that you notice up to 5 years after possession repaired within 30 days.
Keeping these pointers in mind, you can manage your finances smartly and become a well-informed homeowner this festive season.
The writer is CEO, BankBazaar.
BankBazaar.com is a leading online marketplace in India that helps consumers compare and apply for credit card, personal loan, home loan, car loan, and insurance.