Searching for a house and buying a house are two of the toughest decisions that one has to make. One day you might think that you found the right property to invest in, and the next day, you might question yourself, ‘Should I buy a house now?’ or ‘Is it worth the investment?’. The confusions are endless, and so are the choices. Finding the house of your dreams can be daunting, but it is all worth your effort. There are periods of a good time to buy a house, and it is all created when the market demands are high.
After years of steady demand, the residential property market is again seeing a surge in demand in India. According to the reports of MagicBricks, the house price in India’s several cities has risen up by 15% to 20% in the first half of 2022.
Delhi NCR has seen a sizable high among all the cities, followed by Greater Noida and Noida. However, even after these big jumps, residential properties are easily accessible in real estate’s micro markets.
Here are some tips and pointers that can help you use that good time to buy a house in India.
Pointers Checklist Before You Buy a House
Take the plunge as it is time to invest and buy a house in India. Despite COVID-19, lockdown, market slowdown, and other influencing situations, the residential property market is back to its growing stage. The steady rise of house prices in India throughout the last year has been increasing home rates. Also, this instance made the repo rates go up in the country. The demand is more likely to push house prices in India, interest and repo rates. Therefore, it will be wise to get your hands on the right property and buy it before an increase.
Here are some of the pointer checklists that you should check before buying a house every time.
Have You Opted for Pre-Approved Housing Finance?
A pre-approved loan is the first thing you should have when planning to buy a house. Finding the right property takes time, unlike the advertisements. You can get a pre-approved loan even if you have not finalised your dream property. This saves you from the detours required by the banks after finalising the property. The financial institution will avail you of a pre-approved loan to buy a house in India. They charge the interest rate and give the in-principle approval for the loan amount depending upon the borrower’s income and repayment capabilities. A pre-approved loan can also help you to negotiate with the seller as the amount is ready to be disbursed by the financial institution.
Did You Check the RERA Registration of the Property?
The Real Estate Regulation Act, also known as RERA, is an important factor to check. It is a landmark for registration issued to protect the buyers’ rights and punish the developer or dealer in case of any default. RERA will ensure that the property is legitimate and delivered to the buyers on time. Moreover, a RERA-registered residential project will assure you that it complies with all the rules and provides security to your rights. However, do not only rely on the RERA certificate of the property.
see also – Why should you buy a property in Gurgaon?
What to Go For – Ready or Under Construction Houses?
This might be your biggest confusion. Choosing an under-construction land residential unit construction or buying a ready-to-move-in unit. It is always better to go for properties that have been constructed as they are secure, and the chances of your money getting drowned are reduced. Since the property is already constructed, it has no uncertainties or delays. Also, if you aim to buy a house for renting out, ready properties help you to generate rental in no time. However, ready-to-move-in properties can be a bit costlier than under-construction properties. But the chances of delays and uncertainties are high unless it is bought from a RERA registered builder after some research.
Are You Aware of the Area of the Property that You’ll be Paying for?
The seller often asks you for the payment without providing you with knowledge about the floor. Therefore, to safeguard against any issues, always acquire information about the floor you are paying for. A good time to buy a house does not mean you can overlook such a case. The builders often show the buyers the super areas included in their property, like elevators, corridors, etc., used by other residents. Only the built-up area is the actual area coveted by the home you will be purchasing. According to real estate law, the builder is liable to provide you with the floor and carpet area breakup before you make the payment.
Are the EMIs in Your Budget?
EMIs are a big responsibility when it comes to house prices in India. It is always a good idea to access your payment capabilities and EMIs before you say yes to your dream property. Overstretching your finances can be bad; therefore, it is suggested not to do it. An ideal income ratio to the loan should always be below 35%, i.e., all the loans adding up to the EMI should be 35% of the income. In costly properties, the ratio can extend up to 40% to 45%, but over 50% can lead to disaster finance management.
Is Fixed Rate Better to Buy a House in India?
Given the higher rates, many buyers in India are opting for fixed loan interest rates. The fixed-rate loans are pricier than the floating rates loans by 100 to 150 basis points. But it is a good choice because they do not change, and your EMIs will remain the same throughout the period. So, to buy a house in India, where real estate prices are going to be high in future, fixed loans will keep you safe. Many fixed interest rate loans are only fixed for a specific period and change to a floating rate after that.
Have You Opted for Health Insurance that Covers the Loan?
With around 60% to 70% of the housing cost being covered under the loan, you should be prepared for unforeseen situations as a buyer. Get yourself term insurance equal to the loan amount that can cover your home loan in case of your demise and does not leave an unaffordable loan on your family.
