Consideration while buying a Home

Buying a property is a crucial decision in an individual’s life as the purchasing cost of the house/property is very high. It takes multiple years to collect money altogether to buy a property. Also, many people have to avail home loans for buying a property. Many people are forced to stay in a leased apartment due to un-affordability to buy a house. Thus the PMAY scheme[Pradhan Mantri Awas Yojana] aims to help people buy their own homes under the scheme who do not own any property anywhere across the country. The scheme has benefitted many people across the country to buy the house under the “Housing for all PMAY” scheme. The residential market is increasing rapidly due to large-scale urban migration, growing population. Thus the demand for home loans is also increasing year-on-year basis. The homes in the prime localities fetch higher demand while the properties at a remote location or in the outskirts fetch lower demand. The prices of the property vary according to the ready reckoner rates and also depending on the demand. The banks are always ready to provide loans to customers. Also, the flat buyer can claim tax benefits under income tax act 80C.

The demand for luxury homes is also growing in the markets. The premium luxury apartments are the ones that cost above Rs.1.50 crores. Such projects in the urban region may have amenities like a swimming pool, garden, clubhouse, gymnasium.ETC. The banks provide pre-approved loans for the projects, which the banks already verify. The pre-approved home loans help flat buyers avail loans at concessional rates or pay later option is also available for the disbursement of loans. The pre-approved loans are sanctioned by the bank only after checking the property documents with clear titles. Thus there is a surety that the project is genuine, and the property documents are available with clear titles. The property is expected to have a regular water supply, electric supply, toilets, and an underground drainage system. The housing project should also have nearby basic infrastructures like good quality road connectivity, street lights, footpaths, and preferably a public transport facility. The banks provide up to 80% of the property value as a loan to the flat buyer, while the remaining 20% should be paid upfront as a down payment. The interest rates being charged are in the range of 6-9% per annum. Thus the sanction of a home loan is also a major deciding factor for purchasing the house.

Thus following are the factors to be taken into consideration while buying a home:

  • Un-interrupted water supply and electric supply:

There should be a consistent supply of water & electric supply in the locality where the house needs to be purchased. The locality should be thoroughly surveyed whether it has a consistent supply of water & electricity or not.

  • Good road connectivity:

There should be good roads, and the house that needs to be purchased should have proper access to the main road and be properly connected to major roads.

  • Approval of bank for loans:

The bank only approves the loans for the properties with clear titles and also proper land records. Thus the approval of loans for the particular project is an important factor while purchasing the property. Where-ever bank approves the loans, it is said to be a project with clear titles and is also suitable for buying the house.

  • Public transport nearby:

There should be good connectivity of buses, metro rail, or shared services auto-rickshaw as every time traveling at distant places, especially in metro cities, may not be possible with the private vehicle. Thus having good connectivity of public transport is necessary.

  • Prospects of the property:

The resale value of the property should be taken into consideration. The property should have good growth value and also better prospects for sale while in the near future. The development of commercial markets, malls, recreational activities, gardens add value to the property. Also, the connectivity of metro rail adds value to the property.

  • Child centric home:

It is better for the people who have kids to buy the property in areas with ample spaces to play or the availability of gardens, swimming pool, tennis court, or other sports activities. There should also be schools nearby and also health care centers nearby for medical treatment.

All the above factors are necessary while considered while buying the house. Basic civic amenities are required. Also, the quality of construction and the structure should be good. The approval of the bank loan is also a necessary factor while buying a new property. And the connectivity through roads and also good road connectivity is necessary.