Home truths

PROPERTY

Home truths

INFORMED CHOICE: Location is an important factor when it comes to buying property. Photo by the author

Buying a home in Bangalore is no mean task. You have to look through a range of localities that is convenient to all members of your family. That should come at a figure which sounds reasonable enough for you to approach a bank for a loan.

If you are buying property that is still under construction, then you will have to ascertain the reputation of the builder. Approaching a bank too requires a lot of groundwork in terms of the documents needed.

Just the thought of this entire process can be stressful and it is quite natural that you may forget a few important details in between.

Here is a checklist of sorts to help put things in better perspective when it comes to buying a home in Bangalore.

Location, location, location

This is the mantra for all builders when they begin plans for a new project. This very same mantra is as important when it comes to the buyer. There are several aspects that you need to consider when it comes to zeroing in on the right location.

The first thing is ensuring that the access route to the location is open and in good condition. You should at least have an assurance that it will be that way when the project is complete. Next, the location should have good water supply (Cauvery water supply) as well as electricity.

Drainage systems of the property as well as the adjoining areas should be in working order as should the garbage disposal arrangements.

Conduct a recce around the locations. Look for any industries or sources of pollution – air and noise. The overall development of the area should also be taken into consideration. If it has a better scope in the future, then your property appreciation rates will be great. Talk to the locals in the area and make enquiries on the standard of living as well as the amenities and the problems that area might be facing.

Thinking long-term

You may have found the home of your dreams…it fits the location and the budget. But hold on. There are a few other things that often get sidetracked in the joy of having found the right one. For starters, don’t always go by the word of others. When you are researching a builder, try and get as many facts and figures as possible. Speak to brokers, look through forums for opinion and only then narrow down your search. Brands are expensive no doubt, but quality always comes at an expense. That having been said, the research involved remains the same with branded builders as well.

Go in for property that has good potential resale value. Whether you believe in it or not, a Vaastu-friendly home will get you brownie points if you are negotiating a sale. While the price of the land naturally appreciates, it’s the cost of the house that is always negotiated. And of course, location is also important.

Also analyse your potential homes in terms of your lifestyle and the access to it. If you are a social person, you will want all means of recreation close at hand. For those who are a bit laidback, serene environments, a bit secluded from the carnival that is Bangalore is necessary. Coming to the house, look at the plans minutely and check whether the space allotted to different rooms is adequate and suited to your family’s needs. Check the builder’s willingness to customise the home for you.

Financing the dream

Once you have crossed the hurdle of narrowing down the project of your choice, the next step is to find the financial means to get the home of your dreams. The one aspect about home loans that you need to understand is that eligibility constantly changes with an alteration in interest rates. Higher interest simply means a higher EMI and more stringent eligibility rules. This is where you should try and work at raising your eligibility. You can do this by applying for the loan with your spouse. Even if you are engaged, this is an option you can still avail of.

If you are able to provide additional proof of security in the form of FDs, bonds and policies, then this too will hold you in good stead. You have to remember that a good credit history goes a long way in getting a loan at a great interest rate.

When you plan for a house, you have to understand that buying a home involves an additional expenditure. You should budget it to around or below 35% of your total income. You have to give yourself some leeway in your budget to fund unforeseen circumstances that come along the way. You will also have to ascertain how much you can put as down payment. This will play a crucial part in getting you the house of your dreams.

Once you do get your loan and have moved into your home, you have to be consistent with the payment of your EMI. To ease your burden you should decide on whether a three-year fixed interest will work well with you or a five-year one. If you are alright with a higher risk factor, then choosing a floating rate of interest might be an option for you. Bottom line in all these choices is that you pay your EMIs on time.

You should also read the fine print when it comes to a loan. Find out what the penalty, if any there is, for pre-payment of EMIs and the like.

Buying a home in Bangalore involves a look at multiple aspects before you actually sign on the dotted line. Take the time to make the decision – it is something you will be paying for, for a long time to come.

CHECK-LIST

* All documents pertaining to the erection of the building as per building norms.

* The mother deed – it can be obtained from the registrar’s office and gives you a look at the property for the past 30 years.

* Sale deed

* Conversion documents – in cases where agricultural land has been converted.

* NOC – No Objection Certificate

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