7 Precautions to Take While Buying a Property

7 Precautions to Take While Buying a Property

Investing or buying a new house is one of the most crucial decisions of your life. It is a dream that you have been nurturing since a very young age. Buying a house requires substantial financial investment, and if you take a home loan at low rates, you need to make monthly installments out of your income. Hence, before buying a property, you need to be extra careful. We have mentioned some important factors that you need to analyze before buying a property:

1. Property price: The first step in selecting the property is to fix a budget. If you know much you are willing to spend, it makes it easier to shortlist a house for yourself. Before selecting the property, you can compare the price of the property in question from various builders to get an idea if the builder has offered you a genuine quotation. Portal listings, brokers in that area or newspaper listings are some of the ways through which you can get a comparative analysis of the properties in your area.

2. Title deed: It is important to check the title deed of the land or property on which the property is based. This deed will give the customer or the investors an idea as to whether the builder owns the property being sold, and he has the right to sell or transfer the ownership. You can take the help of a lawyer to get the title deed examined.

3. Flat’s carpet area: A property’s area is the entire area including elevator space, staircase, the thickness of walls, and others. However, the carpet area is the actual area within the walls of the flat. The carpet area of the flat could be 30 percent less than the property area or super built-up area. It is advisable to choose the carpet area over the property area. Make sure to check how much land (built-up area) you will need to build your dream house.

4. Legal check of property: Make sure that the property is legally authorized to be constructed on the plot it stands on. The developer should have No Objection Certificates and approvals from area development authorities, electricity, water supply, and sewage boards and Municipal Corporation. However, if you are taking a home loan, the bank will first verify your property documents before sanctioning the loan.

5. Apartment possession: Nowadays, borrowers generally face the issue of delayed possessions of flats or apartments. So, if you are planning to invest in a new property, you should have a clear estimate of the timeline for possession. A developer usually asks for a six-month grace period. However, there should be a valid explanation for the same.

6. Location of the flat: Before purchasing a property, it’s important to look around the area you will be shifting to. Physical infrastructure, amenities, and basic places need to be analyzed. Ensure that the flat is in a safe and secure place. These factors will help you have a peaceful living in the house.

7. Purchase agreement: Once you are done with all the processes, check if everything you were promised has been written down in the purchase agreement. The purchase agreement should have all the details regarding the payment details, construction, apartment specifications, deadlines, and penalty if any party defaults. Purchase agreement acts evidence that you can show if the builder carries out any misdeed or does not fulfill the promises as mentioned in the agreement.

Buying a new house is a crucial decision in your life. By keeping the above-discussed points in mind, you can ensure that your investment is safe. If you do not have the required amount, you have the option to take a home loan. There are many banks and NBFCs that would be happy to give you the loan at affordable interest rates if you meet the eligibility criteria.

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