You may be ready to buy a house in life, but first, you have to save up enough money to do so. How do people accomplish this? Most people live in their homes until they can afford to make the down payment! It typically takes most buyers at least five years of renting before they’re able to buy. Let’s cover the steps to buying a new house in India.
It may take more or less time depending on your monthly debt payments and whether one has saved up enough for either a 20% or 10% down payment (or another percentage). Once you begin addressing all your financial obligations – such as paying off student loans, credit card balances, car loans, etc., you will be prepared to start preparing for homeownership.
Buy a new house in India – Step by Step Guide
1: Decide the Budget
Buying a property is the dream of most people. It is one of the most important decisions of one’s life. Having a home not only gives you a roof over your head but also provides you with a sense of security. When it comes to buying a house, most people don’t want to compromise on their budget. But how much should be the budget for buying a house? The first and the foremost step in the process to buy a house is finalizing a budget. Decide an approximate amount for which you want to buy a property in Pune, Mumbai.
2: Property Type
Another important aspect of home buying is to decide on what type of property you want. This decision will vary depending on your specific needs as a buyer. For example, if your family is growing and you need more space, you may want to buy a duplex or row house.
On the other hand, if you work from home and need ideal conditions for productivity, an apartment in a coworking space or serviced office rental may suit you better! Make detailed decisions based on what kind of lifestyle you want to live when it comes to residential properties.
3: Check the property rent rates
Are you looking to buy a home to live in personally? Check the rents in locations where you are thinking about buying. This will give you an idea of just how much you can charge for rooms on the property. Make sure to calculate the average rent per room per month, as well as occupancy rates and vacancy rates (if applicable). With this info, you’ll be able to do some math and see just how much money that second bathroom is costing YOU! If this isn’t the niche for you, why not try a different field such as bicycles or dog walking services?
4: Check the property’s resale value
Do not just focus on what’s in front of you. You need to consider any future sales when it comes down to cash flow. Have estimation for the property based on the market data itself. Determine a number that is attainable for both parties to be happy about after all is said and done.
This could mean lower than what other properties around that area are going for price-wise so you don’t get stuck spending more money than you originally intended and end up regretting your decision, which is why it’s important to know what the original plan was before things started to burn out!
5: Check Loan Eligibility
Everyone cannot afford to purchase homes, so they take a route of loans. There are plenty of lending options available in the market, who offer home loans, but you should always check the eligibility criteria before applying for a loan. The eligibility is decided by factoring in your age, income, credit score, work experience, and more. We highly recommend having good credit for potential applicants.
6: Property Insurance
It’s important to have your property insured. It will keep the future of your home safe from any problems; you could use the insurance money towards things like repairs, legal costs, and other related expenses. It depends on which policies you choose for yourself in terms of what kind of protection you’d like to have because there are various home insurance policies available out there somewhere. Once this is done for you, you can peacefully live in your dream house or enjoy the rent from your property without worrying about anything else.
7: Stamp Duty & Registration Fee
When buying a house you’re sure to come across a list of hidden costs that can have a negative effect on your budget. There are government taxes to consider and other small charges that most people don’t think about, such as legal and appraisal fees. Calculate any further costs to be expected (over the standard purchase price) and make sure you check with the state authorities before finalizing anything so you know exactly what you will be paying. Keep in mind that some states have higher rates than others!