The 7 Point Checklist For First Time Property Buyers

Property whether residential or commercial has a number of things associated with it – from making personal visits to finalizing the cost and other important details there is a lot that property buyers need to look into and take careful consideration of.

Considering India in particular, the demand of both residential and commercial property is high and the prices too continue to grow as per the demand. Despite all the basic knowledge that the buyers have they tend to sideline a number of things which prove to be mandatory over a period of time.

This blog post by Namma Family Builder & Developer Pvt Ltd is a checklist that the first time property buyers need to keep in mind for a perfect deal –

• Plan Your Budget – To begin with, the buyers need to take a note of the budget and the expenses. Most buyers directly begin with the work of property search and take the budget estimations as secondary, and that is exactly where they tend to go wrong. Doing the planning right in the beginning means you have things established for the rest of the buying process, which further means you have nothing to worry about and things will be really simple for you. Furthermore, when you do the budget management prior to the property selection process you can be sure your search will be limited to such options, thus simplifying your work.

• Understand Land Laws – The land laws in every city or location of the country may vary and having the information about them is exactly what does the magic for you. Before you begin the property search make sure you’re clear and okay with the land laws of the particular area, this will give you some idea on whether or not choosing a property in that particular location is worth your money or not. Buyers are further suggested to take the information from a valid and approved personnel rather than keeping things restricted to his knowledge and information.

• Get Finance pre-approval – Next up in line, is that you be sure to get your finance approved as early as possible to ensure a smooth functioning when you start house hunting. You can get started with finance by researching potential lenders or getting in touch with your bank or mortgage broker to compare mortgage rates. They will discuss your budget to help you settle on a finance plan you can comfortably afford and may give you a pre-approval certificate to verify your eligibility to borrow before you buy.

Documents for pre approval include the following 

1. Identification Documents – Government Identification Cards

2. Proof of Savings such as two to three bank statement or pay slips

3. Proof of Income in the form of a payslip or tax returns

4. Evidence of Current Debts such as your credit card or loans

5. Good Credit Score which should be checked before you apply for pre-approval

• Understand the Locations – Every location has its uniqueness – while some are considered appropriate for residential properties others in particular have everything on the commercial front. As buyers you must have the potential to choose and differentiate among the given set of properties and see the one that best suits your requirements and expectations. Also, there might be a case where you get stuck among a number of locations and that is when the cost factor comes into play – apart from considering just the basic facilities and amenities available in the location it is important that you also consider the cost and see if a property in your chosen location is worth the money.

• Opt for a Property Inspection – This is the point that most buyers tend to ignore – when carrying out the property search online the buyers ignore the idea of property visit and this is a negative thing to do. Before you finalize a property in your location make sure you personally visit the property and see if it is exactly what it appears like online. Also, when you visit the property you get a clear understanding of the location, the amenities available as well as the other properties sold here.

• Complete the Necessary Paperwork – Paperwork is indeed one of the most important things and while no one really forgets to do that people just forget some of the most important documents that need to be taken into consideration. When choosing the property make sure you have all the important documents with you and that they are all verified – this saves from the tension that may come later.

Some really worthwhile documents include the following 

1. Sale deed / Title deed / Mother deed / Conveyance deed

2. Building plan authorized by constitutional authority

3. Layout approval plan permit

4. NOC from electricity department / pollution control board / water works /  airport authority

5. Supplementary agreement / ratification deed (if any)

6. Allotment letter from the builder/co-operative society / housing board

7. Approved plan of creation / extension and certificate for construction

8. Comprehensive cost estimate/valuation report from chartered engineer / architect (if applicable)

• Understand the Taxes and Tax Savings – Taxes are an imperative part and should be carefully considered. As most of the first time home buyer tax benefits provided are applicable on home loans, utilizing one to help finance your property investment – this can have more advantages than you ever thought. There are also separate tax policies for under-construction properties and completed ones, so it can be helpful to understand them before choosing a property to invest in. Check all the details before making the final decisions.

Keep in mind these seven most important points about property purchase in India and make the things really simple for you. Therefore, if you are a first time home buyer and aren’t sure what you need to consider during the property purchase, then this checklist guide is all that you ever needed.

The Best Builders in Chennai, Namma Family Builder & Developer Pvt. ltd. Offers you residential plots, industrial plots, and investment plots in chennai, Guduvanchery with all high-end needs. Bank loan is approved from major banks such as Axis Bank, HDFC Bank, ICICI Bank, LIC.. We’re one of the few plot developers in Guduvanchery to have a team exclusively dedicated to post-sales support.