Home Buying Guide

Home buying guide in India

These days, owning  one’s own home is more than just a basic need. It is sign of Pride, Freedom ,Success ,Security and, Achievement

Deciding to buy a home is one of the biggest decisions one takes in his/her life and it will be biggest investment decision one takes, so it’s important to know the major and minor details when it comes to home buying. If done wisely, one will not only save money but also avoid legal or technical issues.

Following these simple rules will help find the dream home you have been looking for.

1) Prioritise your requirements

Deciding what one really wants about the house. This includes
–       What kind of home one is looking for?
–       In what locations
–       What amenities one should look for.
–       What about surroundings
–       Is it safe?
–       What are the growth opportunities
–       What facilities are there in nearby locations. i.e : schools, hospitals, gyms etc.

2)Type of Residence: This could range from an Apartment, Flat, Duplex, Pent house, Row House to a Bungalow.

3)Area size of the house : Area plays a key role in the overall price of the house. Choose Area size based on your family’s requirements & preferences like the no. of rooms, balconies, Bathrooms etc.

4)Location: Real estate is all about Location. Proximity & convenience of access to work place, public transport facilities, hospitals, recreation clubs, gym, malls places, health clubs, schools, road connectivity, rail connectivity, access to airport etc should be taken into account while selection.

5)Surroundings: The surrounding social and natural environment impacts the moods, behavior and general living conditions of people. It also plays a vital role in the upbringing of kids. When selecting a location for your home, safety against theft and anti-social elements, pleasant surroundings, the neighbourhood etc should be taken into account.

6)Arranging Home Loan :   Owning a house requires lot of capital. How to arrange capital / money becomes important thing.  Many people opt for a Home loan and there are many HFC’s who provide various home loans based on the customer’s requirements.

If you are going for a home loan, do ponder on the following things

• Joint Ownership: Home loans can be taken through Joint Ownership which means purchasing the property with somebody else. This process can make the buying process easier, for example buying with parents or a brother can actually ease the financial pressure. This will increase the loan amount one can take, so that one can afford a bigger/better house.
• But remember relationships can change and circumstances alter, so you might want to get legal advice before deciding which type of ownership is right for you.
• If you do decide to buy with someone else you might want to get a contract drawn up saying who has contributed what, what you will do if someone wants to move out or sell up, etc.

• What is a Home Loan? Simply it means a loan under an agreement to borrow money in order to buy a property and the property being mortgaged to the lender until all the money has been repaid by the borrower to the lender. The Home Loan is repaid over an agreed time period, together with interest thereon. Once the Home Loan is fully repaid, the property is released by the Lender from the Mortgage.
• There are many things you need to consider when working out what you can really afford on a monthly basis. This includes your income ‘in’ such as your salary, gifts, interest from savings and any other income, and your costs ‘out’.
• Costs include your personal costs such as food and drink, travel, insurance, toiletries, entertainment or credit card payments; as well as your home costs such as your mortgage (or rent), taxes, buildings and contents insurance and utility bills.
• If you add up your personal and home costs and take the total away from your income, then you should know if you can manage, have a shortfall or have any funds left over.
• Remember a good budget allows for saving, some luxuries and an amount for emergencies or repairs and maintenance.

Once it has been decided what exactly you want and had finance arranged, the next part that comes is finding a property matching your requirements. Searching for the dream home can be a daunting task; however, the following sources could be sought after for the same.

Buying a home varies from location to location and from city to city. Before buying a house, do consider the local conditions and situations.