Buying a property has always been considered as a good option for investment. But taking into account the dynamism of the real estate market in India, it becomes very important to consider a few factors before investing a huge sum of money in it.
Here we have compiled a few points that you must consider before buying a property, we have bifurcated the buying decision under two major categories.
- Physical Factors like : property location, title clearance and property potential.
- Monetary factors like: Returns, loan and affordability factors.
Let us discuss in detail about each factor.
- Physical Factors –
- Property Location: It is the most important factor while considering a property for purchase. Whether you are buying it for investment purpose or for residential purpose, it is important to check the location with respect to the basic facilities like accessibility to different means of transport, hospitals, schools, airport, etc. Proximity to certain amenities like metro station, schools, and upcoming commercial complexes helps in increasing the property value.
- Title clearance – While purchasing a property make sure that the property is non-disputed and has a clear title. If your property, either under-constructed one or a completed one, is in dispute, it might lead to loss of money and loss of ownership as well. Thus, it is advisable to do a thorough research about the property, background check of the builder and the project.
- Property Potential: Or you can say the property demand. If a property is high in demand then it proves to be a good investment as the value of such properties is definite to increase in the coming time.
- Monetary factors:
- The Affordability Factor – While there are many banks and NBFCs that provide you instant home loan to buy a property, it is important to understand that you need to check your budget first. But, with the change in time, the buying capacity of people has increased. As per the data compiled by HDFC, in India, the average property value in the current scenario is around Rs. 52 lakh and the annual income of an individual has grown up to Rs.12 lakh per annum. Apart from the rising income level, certain factors like tax incentives, luring interest rates have aided the property buying and made it easy for an individual to make an investment in property.
- Picking up the Correct Home Loan Product – A variety of home loan products have made it really easy for people to buy a home. Accompanied by enticing policies of bank people often pick up a loan in a hurry. But you need to consider the following factors before finalizing your bank for home loan: the penalty fees, comparative analysis of different interest rates, hidden costs, balance transfer facility penalty w.r.t balance transfer, the pre-EMI and full EMI schemes offered by the bank, the interest rates in both the cases. Once you have a positive answer to your queries, go ahead.
- Evaluation of Various Costs– Before deciding to buy a house, go through the price menu. It includes stamp duty charges, property registration charges, maintenance cost, transfer fees, monthly outgoings in the form of electricity bill, phone bills, and other amenities cost, and cost of utilities. Do your research with other builders. Compare the costs and don’t hesitate to clear your queries with your builder.
Many time builders don’t project the entire costing upfront which leaves the home buyer baffled , hence don’t get swayed away by enticing policies and look for what best fits your budget in present and in future.
It’s never too late to make a decision to buy a property, but, if you are spending some good amount of money then why not do it smart way. Loanyantra can be your smart partner in assisting you with the home loan process. We give you a chance to be the king and choose the bank that best matches your requirement. Let your goals be monitored by us so that you can finish your loan as early as possible. Apart from these features Loanyantra offers you a pool of benefits that will make your buying decision an easy and profitable one. Get connected with us today to know more about home loan.