Jun 15, 2023

Understanding the Homebuying Process

by Godrej Properties Limited

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Owning a house is a cherished dream of many individuals and families. However, the process of purchasing a house involves a lot of research as well as various technical and legal aspects that need to be carefully considered. So what is the process of buying a house? Below is a checklist of how to buy a property.

Buying a house: Step-by-Step Process

  1. Establish a Budget: The initial step in the home buying process is deciding the budget. Determine an approximate amount that you are comfortable spending on a property. Review your financial situation - savings, debts, income, etc. to derive the figure of the downpayment you can afford and the quantum of home loan you may need.
  2. Finalise the Location and Property Type: Consider your family's requirements and choose the appropriate property type (flat, builder floor, duplex, etc.) and the number of bedrooms (BHK) based on your needs. When selecting a location, balance your desired locality with your budget and consider nearby areas with potential growth. Ensure essential amenities are available within a 500-meter radius of the property.
  3. Analyse the Rental Rates of the Property: If you are buying a property for investment, consider your desired locations' rental rates. This will enable you to maximize your earnings from the investment property.
  4. Property Resale Potential: A property’s future resale value is an important determinant in choosing it. Study market data on the location and property and choose a property with a strong resale potential to ensure better returns in the future.
  5. Assess Loan Eligibility and EMI: Homeloans bridge the gap between your financial resources and the chosen property’s price. Home loan EMI calculators help determine manageable monthly installments. Also consider factors that lenders check such as age, salary, credit score, and work experience before applying for home loans.
  6. Legal Fees and Taxes: Buying a house involves additional charges such as registration fees, stamp duty, sales tax, and income tax that must be paid to the government and vary across states.
  7. Other Expenses Associated with the Property: Other additional expenses incurred when purchasing a property include the fees of professionals like real estate agents, home inspectors, mortgage brokers, and lawyers. Check necessary documents, and secure the Title Deed and occupancy certificate.
  8. Property Insurance: The final stage in the step by step process of buying a house is buying an insurance policy that offers protection for title, legal issues, and property damages.

To conclude, the above pointers on how to own a house are comprehensive. However, it is advisable to seek professional advice when making your final decision.

 

Frequently asked questions

1. How to purchase a property in the resale market?

Ans. The process is largely the same as buying a new construction property. However, for resale property, consider the age and condition of the flat and building.

2. How to buy houses for investment purposes?

Ans. Consider the rental yields and resale value of similar properties in the chosen market. Consult professionals to make the right decision.

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