How often do you buy a residential property?
Surely not often enough to get accustomed to the trends and process which changes in every cycle, right!
We must understand that the ever increasing demand in real estate sector makes this industry extremely dynamic and it is very difficult to keep yourself updated with everything around it. However, at the same time if we are about to buy a property it becomes important to do a thorough research at our end make sure we don’t make mistakes.
Bangalore being a major IT hub of India is one of the most appealing investments for HNIs, NRIs and other investors and hence has observed real estate grow by huge leaps and bounds in a short span. There are a lot of good projects in Whitefield and other posh localities which have recently developed and are offering homes in all budget brackets. With so many options it becomes easy to get carried away and not take the right decision. Hence, a step by step approach is a better one. Following are some tips for that same:
# What is your budget?
Determining budget is the first and the foremost aspect of buying a property. Until you know how much you can spend, you cannot make a purchase as humungous as buying a house. To answer this you need to check your financial standing and consult your bank passbooks and a CA to understand you disposable income for this project.
# How much loan can you get?
Firstly the amount of loan that a bank or a financial institute can sanction to you depends on your credit history or the equity if you have a previous home loan too. If you have defaulted in paying off your debts, it will show in your financial history which the bank can fetch from their system and this will pose as an obstruction to loan approval. Secondly, if you have a higher income or if you are jointly owning and registering a property with spouse or anyone else, you can get a bigger amount of loan.
# Is the property Compliant?
The developers must have certain certificates to prove that the residential project he is offering complies with all the government set rules and regulations like Conversion order, title deed, building plan and floor plan certified, No objection certificate, occupancy certificate, completion certificate etc. Hire a lawyer to assist you while checking this if you are not proficient enough. For example, if it’s a flats in Whitefield Bangalore from a trusted developer, you can easily verify previous details and reputation of the developer and decide to trust or not.
# Which banks are financing the project?
Check if some reputed banks are approving the loan for this project or not. This should include big names like HDFC, ICICI, SBI, etc. rather than only small financial institutes. This is because if the banks are convinced that the project is compliant then only they give the loan and so if the township you are considering does not have any good bank associated to it means there is some verification and reliability issue.
# What is the total cost of the house?
Even if you have hire a financial consultant, go to the website of a good bank like and use the home loan calculator to check if you can afford a certain amount of loan and determine your budget on your own as well.
July 15, 2016