7 Tips for Buying the Best Residential Property
Purchasing a residential property is a huge deal. It doesn’t matter whether you have done it before or are understanding the processes involved in it for the first time. It is a massive financial investment, so it is essential to weigh the pros and cons well before agreeing to a particular residential place. To make things easier for you, we have put together a few tips that can help you find and buy the best residential property in India. Read on to find out what you need to keep in mind when looking out for such property.
1. Decide on the Kind of Residential Property You Want
There are many residential property types that you can choose from. Investors and home buyers can opt from villas, old school apartments, row houses and even new-age gated communities. Taking into account your budget, preferences, needs, and situations are essential when coming to a conclusion. You can also choose the ready-to-occupy properties or go in for other projects, provided you possess the required certificates and proper approvals.
2. Come Up with a Financial Plan
Conducting proper financial planning is a must before you go residential property shopping. First of all, examine the existing financial obligations you have. These can include life insurance, student loans or any other commitment that takes up a bit of your monthly income. When you plan to apply for a Home Loan, understand your budget and how much you can put in for the EMI (Equated Monthly Instalment). See that you have a good savings account that can help in paying for registration, stamp duty, and clubhouse charges among other factors. Check the various loan options provided by the lending institution/bank and move ahead accordingly.
3. Familiarise Yourself with Various Interest Rate Options
If you are a first-time residential property buyer, you may be in a fix wondering whether to choose a floating rate of interest or a fixed rate of interest. In floating rate of interest, the interest rate is not constant during the entire loan period whereas, in a fixed rate of interest, the interest remains the same even with market fluctuations. People, nowadays are opting for fixed-floating Home Loans. In this scenario, the interest rate is fixed for an initial couple of years and then begins to fluctuate after this period. This helps individuals plan their finances better since the monthly EMIs remain constant at least for a few years.
4. Research Locations and Neighborhoods
Before investing, it is essential to keep the location of the residential property in mind. Buying into a high growth area is always beneficial. This ensures you can take advantage of budding growth and potential capital gains. Also, check for any future developmental projects coming up in the neighborhood and how it can have a positive or negative impact on you. Check whether malls, schools, your workplace, and hospitals are within proximity to the residential area. Remember, the location needs to blend well with your budget and specific requirements to a great extent.
5. Enhance Your Credit Score
The credit score of an individual plays a significant role in the loan application procedure. When you fill out a Home Loan Application, the lending institution instantly checks your credit report and credit score. A low credit score is not good as it makes the lender vary about offering you a loan. So if you are asking yourself where can I get a home loan, the answer is at any bank or lending institution, provided you have a good credit score and are a pleasant customer.
6. Take into Account the Builder’s Credibility
Other than focusing your time and attention on obtaining a loan and looking at the property, make sure you look into the credibility of the builder as well. Examine the developer’s previous projects, the rate of appreciation in value, quality of construction, number of future projects and existing demand in the market.
7. Look at the Legal Documentation
It is essential to inspect the license and registration number of the development before you invest in the residential property. You also have to see whether the property is priced as per the carpet area of your apartment. This enables a more seamless clear-cut transaction. You also have to verify that the developers have obtained a No Objection Certificate (NOC). This helps to certify that the property is completed without any violations.
Choosing a well-recognised developer always benefits in the long run. Other than this, do not forget to carry out negotiations to get a better deal. When you have selected a residential property, and made an initial payment, the builder should give you an allotment letter specifying the area, flat number, payment details, and price in addition to the added charges on account of other amenities provided.
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