According to a report published by the Indian Brand Equity Foundation in November 2016, the housing sector alone contributes 5%-6% to India’s Gross Domestic Product (GDP) and the value of Indian real estate market is expected to touch US$180 billion by 2020. In this ever-growing market, with the low interest rates being offered on mortgage loans, home buyers have much to celebrate.
If you too are looking to buy your own home, this might be the best time to do so. However, it is important to make an informed buying decision. Here are some aspects you should look into before making a final decision.
4 Questions You Need to Answer Before Buying a House
1. Do you really need to buy a house?
Sometimes, we decide on something just because we want it, without asking ourselves whether it is necessary to do so at this time in life. It is better to buy a house you will be able to afford and find peace in, rather than making an impulsive decision and regretting at leisure due to the financial burden it puts on you. Never forget, renting has its own benefits at specific points in life.
2. Have you checked the legal papers of the house?
Trusting the wrong people in real estate can prove to be very costly. How often have you heard of illegal constructions being torn down or a house being under dispute? Make sure you check all the legal documents or get a professional opinion regarding legal issues associated with the property you are interested in before putting in any of your hard earned money. The good news is that when you seek a mortgage loan to make a purchase, the lender will do their own due diligence, so you can be sure that if the loan is sanctioned, the property is likely to be hassle free.
3. Are there any structural problems with the house?
Make sure you visit the location and check the property carefully. Images you see online can be deceiving. If it is an existing home, check for leaks, electrical connections, and any cracks on the walls, etc. If it a property being constructed, again check the status and get an update from the builder, while asking for timelines.
4. Are you ready to afford the add-on charges?
The rates that the builder tells you is only the price of the property they are selling you. There are other charges like the stamp duty, registration fees and many more expenses that you will need to bear before getting full legal possession. Moreover, you also have to work on the interiors to make the place worth living in.
If you are taking a loan, then take help of a mortgage calculator to get a clear picture of what you can borrow and how much you will have to pay as interest and therefore the expected EMI. Never take a decision under pressure.