Home buying guideline - How to search & finalize a home that you wish to purchase

Comprehensive Real Estate and Home Loan Manual for First-Time Buyers

​

Introduction

Navigating the real estate market can be a daunting task, especially for first-time buyers. This comprehensive guide is designed to walk you through every step of the process, from identifying a property to securing a home loan and handling post-purchase concerns. This manual includes insights on avoiding common pitfalls, understanding legal and financial terms, and leveraging services like Greh Pravesh Insights to ensure a smooth and informed real estate journey.

1. Identifying a Property

Define Your Requirements

• Type of Property: Decide whether you want a residential or commercial property.

• Location: Choose based on proximity to work, schools, amenities, ,future development plans and emotional considerations.

• Budget: Determine your budget considering your savings and loan eligibility.

Common Pitfalls:

• Overlooking future infrastructure developments.

• Ignoring local market trends and pricing.

How to Avoid:

• Research the area thoroughly using online resources.

• Consult real estate market reports and trends.

• Utilize Greh Pravesh Insights service to avoid real estate mistakes.

2. Understanding Your Budget

Assess Your Financial Capacity:

• Calculate your total savings, income, and existing debts to understand how much you can afford.

Calculate Your Home Loan Eligibility:

• Research banks and financial institutions to understand their interest rates, eligibility criteria, and loan tenure.

• Use online tools or consult a financial advisor to determine the amount you're eligible to borrow.

Consider Additional Costs:

• Budget for expenses like registration fees, stamp duty, legal fees, and maintenance charges if purchasing an apartment in a gated community.

3. Research and Shortlisting

Online Research:

• Use real estate portals.

• Check RERA registration for project authenticity.

Visit Properties:

• Schedule visits to shortlisted properties.

• Evaluate the property condition and neighborhood.

Common Pitfalls:

• Falling for false advertising or manipulated photos.

• Not visiting the property in person before making a decision.

How to Avoid:

• Cross-check online information with actual site visits.

• Interact with current residents for unbiased feedback.

• Utilize Greh Pravesh Insights service for a detailed property analysis.

4. Property Types

Choose Between Apartments, Houses, or Plots:

• Different properties offer various advantages and disadvantages. Apartments are low-maintenance, houses provide more space and independence, and plots can be developed according to your preferences.

Consider New vs. Resale Properties:

• New properties often come with modern amenities and require less maintenance but can be more expensive. Resale properties may offer cost savings but might need renovations.

Assess the Pros and Cons of Gated Communities:

• Weigh the benefits of added security, common amenities, and a sense of community against maintenance fees and potential property modification restrictions.

5. Legal Compliance

Verify the Property's Ownership and Title:

• Engage a legal expert to verify the property's ownership and title. Ensure there are no disputes, pending litigation, or claims on the property.

Check for Land-Use Classification:

• Verify that the property is designated for residential use and there are no zoning issues or restrictions on the land.

Ensure Compliance with Local Building Codes:

• Confirm the property complies with local building codes and has necessary approvals from municipal authorities.

6. Home Loan Process

Research Lenders and Interest Rates:

• Compare home loan interest rates and offers from multiple banks to find the best deal. Consider factors like interest rate, processing fees, and loan tenure.

Loan to Value Ratio:

• Consider the Loan-to-Value (LTV) Ratio, representing the percentage of the property's total value the lender is willing to finance.

High Interest Rate Hikes:

• Ask for the interest rate movement of the home loan bank or NBFC for the last three years to inform your decision.

Evaluate EMI and Loan Tenure:

• Calculate your Equated Monthly Installment (EMI) based on your loan amount and tenure. Ensure your EMI is manageable within your budget.

Gather Necessary Documents:

• Prepare and submit required documents to the bank, including proof of identity, address, income, and property details.

7. Property Inspection and Due Diligence

Inspect the Property for Structural Integrity:

• Hire a professional agency or seek Greh Pravesh's services to assess the property for structural issues, like leaks, cracks, or foundational problems.

Review the Property's Legal Documents:

• Carefully review or seek Greh Pravesh's services to check legal documents, government approvals, and occupation approvals.

Check for Outstanding Dues and Encumbrances:

• Confirm there are no outstanding dues like property taxes or maintenance charges and that the property is free from legal encumbrances or mortgages.

8. Negotiation and Offer

Make a Reasonable Offer Based on Market Research:

• After inspecting the property and researching the market, make a fair and competitive offer.

Negotiate Terms and Conditions:

• Negotiate the terms and conditions of the sale, including price, possession date, and any required repairs or modifications.

Have a Lawyer Review the Sale Agreement:

• Engage a legal expert to review the sale agreement and ensure it protects your interests.

9. Property Registration

Understand the Stamp Duty and Registration Process:

• Be aware of stamp duty rates in your state and the property registration process. Budget for these significant costs accordingly.

Hire a Lawyer or Use Online Registration Services:

• Engage a lawyer or use online property registration services to assist with the process.

Get the Sale Deed Registered in Your Name:

• Ensure you have all necessary legal documents, including the sale deed, khata certificate, and property tax receipts.

10. Home Insurance

Consider Home Insurance for Added Protection:

• Home insurance provides coverage against natural disasters, theft, and other unforeseen events. It's advisable to safeguard your investment.

Understand Different Insurance Options:

• Explore various home insurance policies to choose one that suits your needs.

Choose a Policy That Suits Your Needs:

• Select a policy that aligns with the value of your property and possessions, ensuring it covers specific risks you're concerned about.

11. Tax Implications

Learn About Property-Related Taxes:

• Familiarize yourself with property-related taxes, such as Goods and Services Tax (GST) and property tax.

Explore Tax Benefits for Homebuyers:

• India offers several tax benefits to homebuyers, such as deductions on home loan interest and principal repayment. Consult a tax expert for guidance.

12. Possession and Handover

Verify the Property's Condition During Handover:

• Thoroughly inspect the property to ensure it matches the agreed-upon condition.

Ensure All Promised Amenities Are Provided:

• Check that all amenities, such as parking spaces and common facilities, are as per the agreement.

Update Ownership Details with Local Authorities:

• Complete necessary paperwork to update the property's ownership details with local authorities and the housing society.

13. Interior Design and Furnishing

Plan Your Interior Design and Furnishings:

• Decide on the interior design and furnishings for your new home, including furniture, appliances, and decor items.

Hire Professionals If Needed:

• Consider hiring interior designers or contractors to execute your vision efficiently.

Budget for Home Decor and Renovation:

• Set a budget for interior design and renovation to avoid overspending.

14. Community and Society Rules

Understand the Rules and Regulations:

• Familiarize yourself with the rules and regulations of the community or society you're moving into.

Comply with Maintenance Charges and Membership Fees:

• Ensure you pay maintenance charges and any membership fees promptly to avoid disputes.

Participate in the Residents' Association:

• Get involved in the residents' association to have a say in community decisions and address concerns.

15. Resale and Appreciation

Keep an Eye on Property Market Trends:

• Stay informed about property market trends, including price appreciation and demand in your locality.

Consider Future Resale Value:

• Make property improvements that may increase its resale value. Regular maintenance can prevent depreciation.

Invest in Property Maintenance and Upgrades:

• Allocate a budget for ongoing property maintenance and periodic upgrades to ensure your investment appreciates over time.

Conclusion and Checklist

Track Your Progress:

• Use this checklist to track your progress during the home-buying process. Stay updated with Greh Pravesh for the latest trends and insights.

By following this comprehensive guide, you can navigate the complexities of real estate with confidence and make informed investment decisions. Greh Pravesh is dedicated to providing the transparency and support you need at every step of your journey.