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How To Buy A Flat?

Mr. C.S. Sudheer | Updated On Tuesday, February 20,2018, 11:47 AM
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How To Buy A Flat?

 

It's time to buy your dream flat. But, should you rush the purchase? It would be wise to pay attention to these points before buying your flat.

 

Step 1:  Location is very important

 

Location of your flat is super important. Make sure that your office is not too far from your flat.  Schools for your kids, the market, hospitals, Malls for shopping need to be pretty close to your flat.

 

Step 2: Buy a RERA approved flat

 

After July 2017, all ongoing projects had to register with the real estate regulator of that State.

 

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How to check RERA approved flat?

 

  1. Visit the RERA website and check the track record of the developer and the details of his projects.
  2. For a good flat, timely delivery and quality of construction is very important.
  3. Check the names of the real estate agents who are dealing with your flat on the RERA website. It is compulsory for real estate agents to register with RERA.

 

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Step 3: Avail a Home Loan

 

Avail a home loan from a bank, even if you have the money to buy the flat. Banks will do due diligence (thoroughly check the credentials of the builder), before sanctioning your home loan.

 

 

Step 4: Check for additional costs

 

While buying a flat, there are always additional costs. These are the hidden costs. The stamp duty and registration charges can be 6-8% of the cost of the flat.

Then, there are the extra parking charges which your builder has forgotten to mention. Additional costs can push the price of your flat up, by even 20-25%.  

 

SEE ALSO: First Time Home Buyers: Should You Buy That House Now?

 

Step 5:  Make sure you can afford the flat

 

Want to buy a flat, but not sure you can afford the home loan EMIs? This is a simple trick. If you take a home loan of Rs 50 Lakhs at 9% for 20 years, the EMI is around Rs 45,000.  Now, try putting aside this amount in FD's or an RD. If you find this difficult, how will you pay back the home loan EMIs, after you buy the flat?

Want to know more on residential apartments and residential land? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.

 

Step 6: Documents to check before buying a flat

 

Important documents when buying a flat

 

  1. Title Deed: The title certificate should be clear and marketable. The title deed tells if your builder has the right to develop and sell the property.
  2. Encumbrance Certificate: You must get the encumbrance certificate from the sub registrar's office. The encumbrance certificate tells you if the property on which your flat is constructed is free from legal/monetary disputes and litigation.
  3. Land conversion certificate: It is compulsory to change the use of land from agricultural to non-agricultural, from a competent revenue authority. A conversion certificate must be issued from a legal authority on the property.
  4. Occupancy certificate: The occupancy certificate is a very important document. When your builder applies for an occupancy certificate, authorities carry out an inspection to make sure construction of your flat meets specified norms. So, the occupancy certificate tells you that your flat is ready for occupancy.

 

Take your lawyer with you to check the documents while buying a flat. This will save you a lot of headache in the future. Be Wise, Get Rich. 

 

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Article Author

Mr. C.S. Sudheer

Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.

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