Financial Guide you should go through before buying you House
Purchasing a property is a considerable decision of life, but factors such as easy availability of finance, attractive housing schemes and weight carrying income of young citizens has made investment easy and reliable. The availability of many tools such as financial consultant to the investors helps them to understand their financial potential to act accordingly.
The approval of Real Estate Regulator Bill, passed by the Indian Government had made buyers free from housing loan burdens. This step has mainly been taken for the revival of Indian Real Estate Market. Under the bill, if a project is delayed buyers will be protected as developers will have to pay back the home loan EMI interest of the buyer. Approval of this law has influenced first time buyer to invest in property making it an ideal time. With the unusual rate of growth in the market, buyers have tones of options, regarding to the price, connectivity, structure and according to their financial strength.
Here is our guide to buy property in India for first time home buyers.
Financial strength and budget is the most important element while buying property, especially for the first time buyers. One should have a clear view in case of money and later investment each and every month to meet their expenses. Home buyers must have a clear idea about their budget and how much can they pay towards their home loans. Your budget for buying a home should be based on your household budget and a review of your monthly financial obligation. According to an expert, one should keep 4-5 EMI safe in case of any unforeseen situation to avoid any future issues.
The Location of a home is very crucial, and can make all the difference in the long term returns on your property. Buying a property in prime locations not only gives good ROI but also makes better resale value. Property buyers sometimes focus solely on the location or budget, however they must consider the right location as well as value of property in the long run before making an investment. Prime location is a location which occupies hospitals, malls educational institutions and many more facilities within 10 k land area.
Different kinds of loans are available for buyers according to their suitable financial needs. Home Buyer should must a clear understanding of home loans accordingly. Home loan eligibility is calculated on the basis of parameters like the source of income, repayment capacity, earning members, other financial obligations and age of the loan applicant.
- Home Equity Loans
- Home Purchase Loans
- Home Extension Loans
- Land Purchase Loans
As the name suggests, Property Insurance protects your major investment of life in case of any legal matters, or any other real estate problem in the future. Different types of insurance policies are available with different level of protections to make you enjoy your investment and for hassle-free living.
It is a legal exercise and should not be misunderstood with tax evasion or tax avoidance. You should be aware of your tax benefits under home loans. As per the Income Tax Act, 1961, an Indian resident can claim tax benefits on both the principal and interest components of a housing loan. One can even purchase the property in joint names like in case of married couples. Thus it is very important to know about your home loan and the subsequent tax benefits available on it.
Additional Costs: Many buyers buy property without keeping in mind some of the key aspects in expenses. According to them only the price of apartments is what they have to pay. This is wrong. Buyers should keep in mind that there are other expenses also to pay such as fees charged by real estate agents, brokers, land surveyor, home inspector, notary etc. Other monthly expenses like the maintenance charges, car parking whether included or need to be paid separately shall also be taken into account.
Stamp Duty and Registration Fees:
Another important expense or tax that is collected by the government just like income tax or sales tax is the Stamp Duty and the Registration Fees. Stamp duty is payable of property transfers and normally varies from 4-8% depending upon the location of the property. A registration fee is around 1% of the property value and again varies as per the location of the property. The legal fee is normally 1.5% of the property value. So while making a budget to buy property it is important to know the market value of your property and calculate all these rates and charges applicable on it as per the zone and sub zone of the property.
Research about Developers:
One must have proper knowledge of the Developers from which they are buying their dream Home. There are lots of questions that need to be inquired about the builder, about his past projects, his quality of constructions, and appreciation in value, current market demand and the number of projects in hand for future. The more you talk with your builder, the more satisfied you will feel at the end of the project.
Legal Advice: It is very important to take legal advice and prepare an agreement be it purchase, construction, buying or selling, lease or property. Since the property rates keep on increasing, one has to very clear about the laws that govern the real estate investment and taking legal advice in all the matters is a wise decision.
Allotment Letter: So once the property is selected and the initial payment is made , the builder gives you an allotment letter which has all the details regarding your property purchased like the flat number, price, area, payments details, extra charges paid by you if any, in case of club fees, parking charges, maintenance charges etc. In case you have any preferences for a certain floor or view then it should be informed at the time of initial application only because once the allotment letters are handed over, there are very little possibilities of any further changes.
Verification of all Legal Documents: Sales agreement, Society documents, encumbrance certificates, sanction plans are some of the essential documents that one should take and the document should be legally verified and duly signed..
Possession and Registration: This is the final step for the completion of any purchase process. The possession is the physical transfer of the property by getting the property registered in the buyer’s name with any local authority and the seller documenting the same. For this the stamp duty needs to be paid at the time of registration.
We deal following premium projects which are situated top location of Noida Extension.
- Hawelia Valencia Homes
- Hawelia Valenova Park
- Rajhans Residency
- Trident Embassy
- Nirala Aspire
- Nirala Greenshire
For Buying Property Please Visit Us: http://www.realty360degree.com
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