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Avoid These Mistakes While Buying A House

    IndianMoney.com Research Team | Tuesday, April 12,2016, 06:49 PM
 

The long wait is finally over. You have found your dream home. It is nice and cozy and has everything you need. All you have to do is move in. But there is something you need to remember. Your dream home costs several lakhs of rupees. It is not something you can buy again and again….. You cannot afford mistakes while buying your dream home.

Take time out and answer this question….

Why are you buying the house?

Are you buying the house to stay there, or as an investment? If you are buying the house to reside, you need to consider your needs and your family’s needs. Your children go to school. The school needs to be nearby. Your children need a place to play. There must be open spaces for your children to play. Your workplace should not be too far from your home. All basic amenities such as hospitals, market should be nearby.

And finally ….what about some fun? You need to go to the movies. Perhaps dine with your family in a fine restaurant? These got to be nearby. If you are staying in a joint family, you cannot choose a 1 BHK apartment. You need a larger apartment. If you are staying in a nuclear family, you do not need a 3 BHK apartment. You would simply be wasting your money. What if you are buying a house for an investment? If you want to give your house on rent, you need to buy a house near a commercial area or an educational hub. The value of your house will rise fast and you can make good money, by giving your house on rent.

You need to make the right decision while purchasing your apartment. Did you buy the house to stay or as an investment?

Seek legal help

Get the documents of your house checked by a lawyer before you make the purchase. The title deed of your house needs to be clear and marketable. The title deed gives you the history of ownership of the land. Who were the previous owners? 

You need to check if your house has an encumbrance certificate. Has this house been mortgaged or is there litigation on the property?

Check for the building occupancy certificate. Your apartment gets the occupancy certificate when it has the necessary water, sewage and electrical connections. The occupancy certificate also proves that your apartment has been constructed, according to the building layout approved by the Government.

Budget for additional expenses

You have availed a home loan to buy your dream home. Banks do not sanction the entire cost of your house as a loan. You would have to pay 10-20% of the cost of the dream home from your own pocket. This is known as the down payment. You need to keep this money ready, before you purchase your home.

You would have to pay your lawyer and your broker their fees. You need money for this. You might also have to pay for advance maintenance, club membership fees and so on. You might also need money to purchase furniture and for the interior decoration of your home.

Do your research

Buying your dream home might be the biggest purchase of your life. You need to check the market value of similar properties in the vicinity, to make sure you are not cheated. Check if the area has good water and electricity supply. This will help avoid nasty surprises later.

You must have heard the famous saying “Haste Makes Waste”. If you rush the purchase of your house you could face a lifetime of regret.

IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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