Buying a home especially for first time buyers is an overwhelming experience. For most, it’s a dream come true to own a house so it’s just not a financial decision but also an emotional one. It is one of the biggest investments that you would have made till now and have to live with, if not for rest of your lives, but at least for next few years. Hence, it becomes imperative that you do all the due diligence required to own your dream house.
Here are some of the aspects that you need to consider when buying a property:
1) What kind of property?
You need to decide on what kind of property you would like to buy. There are several options like apartments, villas, row houses, independent houses, condos etc. available in the market. Each of these options have their pros and cons and you need to evaluate and see which option suits you best.
As per a survey done by Makaan.com, it was found that a whopping 69% respondents preferred apartments in urban areas. The main reason could be around security and community living that only apartments can offer. Also, the kind of amenities offered within the same complex are just not available if you are not living in a gated community.
2) Price and Location
The appreciation of a property is mainly driven by the location and the current price at which you are buying the property. The right location needs to have everything you need on a daily basis for you as well as for your family. So, for working couples, their office needs to be closer while for kids their schools need to be closer too. Other entertainment destinations like malls, multiplexes, restaurants etc. should also be close as it becomes even more difficult to travel far due to traffic and parking woes.
It is also important to look at the property not just at the current rates in the area, but also the future potential for appreciation, as it’s critical to opt for a home that will give high returns over a period of time. After all, it’s one of your most prized possessions.
3) Direct purchase from builder
If you are buying directly from the builder you don’t have to pay the brokerage and it generally means that you are the first owner of the property. With brokers there is always a hassle of negotiation and you also need to give them brokerage of around 2% of the total house value which can amount to upwards of 1 lac. Hence it’s no wonder that as per the aforementioned survey too over 58% of respondents said they would prefer to buy property directly from the builder.
4) Consultants and vendors to the builder
Builders use consultants and vendors to construct the property as not everything can be done in-house. These vendors provide their expertise for the project and in turn define how the project will look, the quality of construction as well as the time required for completion. Hence, although most people ignore this aspect, it is one of the most important factors that should be considered while purchasing a home.
The more renowned the vendors and consultants like architects, construction firms, landscaping firms, the better will be the outcome of the apartment complex. This will also comfort you that the builder is using experts in their fields and hence will deliver quality property.
5) Down Payment or Construction Linked Plan
The price of the property should be looked at and compared with similar projects in the vicinity to get a feel of the price in the area. It is important to consider the entire cost of ownership and not just the basic cost of the property. Also, builders give various options of payments and it is up to you to decide which option suits you best. In Down payment, generally builder provides a discount as you need to make more than 80% of the total payment at the time of booking. However, in construction linked plan you need pay around 15% initially and the rest of the payment can be paid as the construction progresses so it does not burden you with large payments when you book the apartment.
6) Financing options
If you are looking for finance, it is important to also consider which banks have approved loans for the property. Also, if Govt. affiliated banks approve the property then there are less chances of any legal issues with the property as the banks do all the due diligence to certify the property. You should check with several banks on the offers and interest rates offered by them and then take an informed decision. You can also bargain with the banks as even if you save .5% of interest, it can amount to a large amount over a period of 10-20 years.
Please share with us if you feel there are any other important aspects that needs to be considered while purchasing your first dream home.
Durga Petals is an upcoming project from Durga Projects and Infrastructures Ltd in the prime location of Marathahalli Outer Ring Road, the heart of Bangalore’s IT corridor with proximity to major IT companies, educational institutes, shopping malls and more. Spread on 5 acres of land, Petals boasts of 7 luxurious sky soaring towers with each having 13 storeys. And that’s not all; it also has a club house and 40+ recreational amenities.