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18 April, 2021 19:31 IST
Financial Planning
   
Things to consider before buying a new house
Source: IRIS (08-SEP-14)

The biggest dream for any individual in India is to own a house. Usually people spend most of their hard earned money to buy a new house. Buying a house is in-fact a onetime investment which needs good adequate planning before deciding to spend a major part of ones savings. Following are some of the things you need to consider before buying a new house:

Select the right property:

Analyze whether you want to buy a new property for residential purposes / commercial purposes or for long term usage/short term usage. Do some detailed research on real estate scenario in the location you prefer to buy a house. Also it would be smarter if you could take some advice from real estate consultants, as they are in the market and would know what kind of house can fit in your budget in accordance to your taste & preference.

Start with the budget:

Having a budget is crucial, and although you might plan to have your dream house - be it with a garden or a fountain or filled with the latest technology, it should fall within your budget - and this should be based on how much you can afford. Check whether your income permits repayment of the monthly EMI and other expenses before making plans on the type of house.

Choose the desired location:

It is important to buy a new house at the location of your choice. You can buy house at any place - it may be rural or urban, but what matters is whether the location chosen is good for you. Buying a large house in a rural area won't help you if you happen to have career and family in the metro city. Also, check for amenities like linkages to major roads, water connections, sewage system, electricity supply, shops, schools, and hospitals in the surrounding areas before narrowing in on the location.

Look for resale value:

As real estate investment is a large investment, make sure that this will not be depreciating in the future. The resale value for property differs from area to area, and it is advisable to know this before hand - check with a realtor if you need to. Also it is important for you to know the development projects happening in and around your desired location of investment, since cities are constantly expanding and huge infrastructure development is on the map. This will make it more likely that your property will be worth more in the future.

Check for legal aspects:

Checking the legal document/agreement before buying the house is a mandatory task. This will prevent buyers from massive issues later on. Make sure that the property is free from any kind of liability, whether it is registered legally and also if it is approved by the government. If it is an older property, one should also check if all taxes, electricity bills, etc. have been paid and there are no statutory dues. One should also check the size and measurement of the property in the agreement as well as the title deed & official seal, etc., before buying the house.

Summary:

> Choose the prime location and check for available amenities around your property.

> Know the resale value for your real estate investment.

> Check all the legal aspects before buying a house

> Keep in mind the budget - and make sure not to overshoot this

(Contributed by Anil Rego, CEO & founder, Right Horizons)


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