5 Important considerations for homebuyers in India

Investing in a home in the Indian real estate industry is not a decision made in a spur of a moment. It takes a lot of time and market research and home buyers often get confused with the kind of property they want to buy? How much to invest? And where to invest? With this article, Makaan.com brings its readers and home buyers top five home buying considerations.

Have a look at the 5 important considerations for home buyers in India

1. Set a budget according to your current income: One always ponder where and how to invest in a property when property prices are sky-rocketing. As a golden rule it should be kept in mind that a property which is more than 6x of the current income of the household should be avoided. The sweet spot to buy a property should be 4 to 6 times the current income. You can make an exception if you fall in the age group of 25-30 years as your earning potential will improve over the period of time.

2. Choosing a home loan: It is a common practice to take a home loan while buying a property when budget is a constraint. The current rate of home loan is ranging from 10-13% depending on buyer’s credentials. It is widely expected that we could see a 0.50–0.75% reduction in benchmark rates over the next 12-15 months. One should always remember that taking a home loan is not a one-time decision. Even if you opt for a fixed rate loan please make sure you review that decision at least once every year so that you can change your loan if the interest rates have dropped after you have taken the loan.

3. Invest In a good locality: Investing in a property is an important decision and therefore one should choose to invest in a good locality. The biggest advantage of buying a home in the good locality is convenience. The location should be near to office, school for kids, hospitals, markets and entertainment facilities for most members of the family. If you cannot satisfy every member, try to find a location that meets the requirement for majority. This helps in huge saving on time and effort which is critical.

4. Hire a specialized real estate agent: If you are confused in which property to invest in then for sound advice you can hire a real estate agent. . Log-on to property site and check for the properties listed by the agent online. Check for depth and width of the property handled by the agent. Check the amount of details given with each property; this will give you a good idea regarding the knowledge of the agent. Most agents also have their area of specialization. Some specialize in residential where as some in commercial property. Some deal in new projects whiles other in secondary market sale. Choose the real estate agent whose specialization suits your property requirement.

5. Conduct a Due Diligence Of The Property: A buyer must do a due diligence of the property as well as the developer. A prospective property buyer must thoroughly go through all the documents and approvals related to the construction site. One must always verify the approvals and original documents of the property before making a purchase. Also a background check of the developer is a must. See if the developer is facing any liquidity crunch and research on the past record of the developer. This is more important in the present scenario in which more and more projects are getting delayed.