Things to consider before investing or buying a home

Date : 4-March,2019|Read: 5 mins

The decision of Home buying is a very critical decision in one’s life as it is a matter of investing their hard-earned wealth into their dream home which must be essentially perfect for their future and also customisable as per one’s needs. It is a crucial moment in a person’s life as it also involves the inception and planning of a family and its future where children would grow up to call it home.

The search of a home is a meticulous process involving browsing several portals and several sources, talking to several people for their advice, visiting several properties and judging all the options based on various factors involved and then selecting the best option apt for one’s requirements. Various other factors come into play along with the inspection of the neighbourhood of your property.

This is a home buyer's guide and here are some of the important factors homebuyers must consider before booking their home:

Important Factors to be Considered before booking your dream Home

Location
Financials
Titles and Approvals
Size of the Property
Developer Credibility
Appreciation and Rental Yield

  • Location: Whether you have plans to live in a peaceful suburb or the busy city, deciding where to live is crucial to the satisfaction of a property owner. Considering all the attributes of a locality keeping in mind all family members to ensure comfort for everyone is essential. Another major factor is whether the locality matches your standards of living and the scope of development in that locality is high so as to ensure higher returns on investment, better connectivity, comfortable living.

  • Connectivity: Having a number of options to connect to the city centre and other parts of the city from your locality is a must. A vast road network connecting to all major locations along with various alternatives to decongest traffic and reaching respective destinations in a short time is essential.

  • Know your Neighbourhood: It is essential for a homebuyer to know the basic amenities available in the community or the presence of a township integrating commercial and residential living as having easy accessibility to all basic needs and amenities like commercial retail outlets, schools, colleges, hospitals, offices, shopping malls, restaurants and various other public places.

  • Transport options: Considering vehicle reachability and commute options ranging from Metro-Bus-Auto-Trains-Public Transport is crucial. Quick accessibility of various transport options is essential for a busy and modern family.

  • Security: For a family, a home is their shelter. Firstly, you must ascertain the security conditions of their locality, then invest in an advanced security and surveillance system to ensure the safety of your family and your property. It protects your investment and at the same time makes sure you have your peace of mind. Carefully select the security system that is apt for your property.

  • Financials: The purchase of a home can initially be very exciting for the first-time home buyer. In this excitement, one must not forget scoping all the financials pertaining to your investment. It is also necessary that you have a sizeable amount of savings to spend. Determine the true costs of the property by taking a strong reality check.

Once the purchase of a home is complete, every owner has to bear some additional costs like property taxes, HOA fees, Private Mortgage Insurance and unexpected home maintenance costs as well. A lot of owners buy their homes by taking a mortgage loan. In this scenario its often seen that banks often lend more money then one can pay off, so make sure and stick to the original budget plan. Spend the money that your income can support and avoid falling into debts or worse losing your property to the mortgage.

Titles and Approvals

  • Clear Titles: Clear titles are documents declaring official registration of the projects to the builders, void of ownership by creditors or other parties clearly stating complete legal ownership. A party that possesses titles are considered the undisputed owner any other parties claim to ownership of property is invalid.

  • Khata is an Indian real estate term defined as “A document that declares the account for payment of taxes to a municipality by a homeowner. The concept of Khata which was introduced by BBMP in the year 2007 simplifies the collection of property taxes from residents of Bangalore. Khata is absolutely necessary for uniform taxation. Khata is divided into three types: A, B & E

  • A Khata: An A Khata is for a property that is completely legal, and allows you to construct on it and obtain a trade or building license.

  • B Khata: B-Khata means that the property is illegal or semi-illegal, have pending property taxes to be cleared or does not conform to the government rules. B Khata can be upgraded to A Khata by paying due taxes till date and betterment charges levied by the local authority.

  • E Khata: E-Khata refers to the electronic Khata that is filed online. The property owners can pay the taxes online.

  • Commencement Certificate: An official document issued by the local civic authorities permitting the developer to go ahead with construction after due approvals from all concerned statutory bodies.

  • Occupancy Certificate: An official document issued by local authorities stating the completion of construction of a building after a due check of compliance with various laws and regulations, Once, this certificate has been obtained it means the property is ready to be occupied or move in.

  • Permissions and Compliance: When there are various rules and laws that govern property developments in concerned areas, it is extremely important to find out whether a developer or builder has obtained the right and necessary approvals from the concerned authorities and civic bodies. In the case of Bangalore - RERA, BDA, BBMP, BMRDA, BIAPPA are the various regulatory bodies from which necessary approvals must be obtained for any development.

  • Size of the property: When it comes to the size of the apartment don’t compromise on the size thinking that you could purchase a bigger one later.

  • Be clear of the delusion that you would be able to afford a bigger home later because the scenario isn’t going to improve every year as property prices will only increase over the years. Even though real estate prices are occasionally doubling, an individual’s salary doesn’t. Also, it must be considered that once a family has settled in their home and is leading a stable life, it makes it more difficult for them to move from there.

  • A glance into the future also makes it clear that there can be a requirement for extra rooms for kids or your parents visiting you for some time or all the household stuff that you might accumulate over the years.

  • Hence, searching for a property that is big enough and still comes under your budget is crucial. To take an example in the case of a 3 bedroom a minimum of 2000 square feet is advised. So, taking the minimum size of the home into consideration might spike expenses initially but will surely come handy later.

  • Undivided Share (UDS): Undivided share is a portion of land that is allotted to a buyer along with the purchase of a flat. A homeowner is eligible to construct a building on the said area of land or a proportionate share of the land on which the whole building can be constructed.

  • Super Built-up area: This area covers a usable area (size of the house), and common areas like lobby, elevators, staircase, corridors, gardens, clubhouse and playground etc.

  • Built up area: Built up area is the area that you live in including the walls of the house.

  • Carpet Area: Area that is actually usable and measured wall to wall.

  • Amenities: It’s a common practice that a lot of developers provide a load of amenities to attract prominent home buyers but it is your responsibility that you look at the bigger picture and decide what are the essential necessities and prioritise as to how much luxury you need to ensure you value for money.

  • Developer Credibility: When you are zeroing on which property to purchase, you must scrutinise all aspects especially the reputation or track record of the property developer. You can check out their previously developed projects or go through their customer reviews. As per the latest Indian Real Estate trends, in the case of an under-construction project, it is crucial to ensure the delivery of the property by the stipulated time along with all the required approvals.

  • Quality and Technology of construction: During the purchase of a property one must thoroughly inquire about the quality of construction. With the introduction of new methods and technologies in the Indian Real Estate Market, the development of top-quality projects that are safe and secure in terms of immunity from disasters has become a reality. As technologies used in construction evolve today, there is a need for developers to adopt them and practice the best methods to ensure quick completion, innovation, strength, durability and safety of the project. The various technologies that are being adopted are:

  • The conventional method of construction – Beams & Walls

  • MIVAN Technology

  • Precast Technology

  • Appreciation and Rental Yield: Before investing in a property after consideration of various other factors, checking the scope of appreciation and the rental yield is a must.

The appreciation of value on a property is calculated in terms of resale value in the future. Improvements in the property, Age and Health of the property, Developments in the locality and Increased commute and connectivity factor in the resale value of the property. Coming to rental yield, it is the returns that an investor is likely to receive through the rent collected on a property. It is calculated by factoring in the yearly rental income on a property in ratio to the total money invested in the property. Higher rental yield ensures faster and better returns.

Homes247.in Experts View

As can be seen, various factors must be taken into careful consideration and selection of the best from a variety of options is a critical aspect.

Consulting an industry expert who has the acumen for streamlining this whole process and ensure that all the needs of the home buyer are met is key.

A real estate aggregator focused on satisfying customer’s requirements rather than commercial gains, someone whose offerings are unbiased and tailor-made for the buyer’s satisfaction is key to efficiency and profitability.

We strongly urge you to get in touch with us all your needs, doubts and queries and let us help you find your dream home.

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