Do’s and Don’ts When Buying Property in India

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hardik, December 19, 2018

Do’s and Don’ts When Buying Property in India

A prudent investor will always include real estate as part of his investment portfolio. Real estate in India has yielded good returns in the recent past, in the wake of developmental projects undertaken in various cities. Investment in real estate involves investment of a large amount as capital. With the ease in procuring home loans, most home buyers rely on borrowed capital to fund their purchase. Home loans come with varying rates of interest and the purchaser should consider the affordability of such loans.

There are many “do’s” and “don’ts” associated with buying property in India:

The Cash Flow

Many investors have a tendency to pay a small down payment and rely on home loans to fund the major part of the cost. Consequently, they end up paying high amounts as EMIs, causing a strain on their finance. They also end up paying a huge amount as interest over a period of time. It is financially prudent to pay a larger sum as down payment in order to minimise the interest burden. This can also substantially reduce the monthly EMIs.

Have a Plan

A decision to invest in property has to be taken after much consideration. Do your own research and do not rely too much on information provided by real estate agents. If the property is your first home, you need to consider the facilities offered by the builder and the ease of living in that area. Access to supermarkets and restaurants and to recreational facilities should be another factor to consider.

Must Read: Tips For First Time Home Buyers

If you are purchasing a second house for investment purpose, you need to consider the rent it is likely to generate and the resale value that you are likely to get in future. It will be wise to choose an upcoming locality where many infrastructural projects are being planned.

Do Not Be Hasty

Real estate investments should be made after careful planning and deliberation. You need to explore several options and do your own research regarding real estate companies and their projects. It will be wise to take advice from professionals from the real estate field. Always be ready to negotiate the price since many sellers are open to negotiation.

If you are looking to re-sell your property, it is advisable to be patient and look for the right time to sell in order to maximise your returns.

Exercise Caution When Investing in Old Property

New property is always preferable since it can give you better rent and a higher resale value. New properties are in much better condition and will be easier to maintain. Older properties can be a drain on your pocket due to the renovation cost and the cost of upkeep of the property.

If you looking for a property in Mumbai, Puranik Grand Central will be a good bet. It is coming up at Pokhran Road 1 in Thane, which is a prime location. Puranik Grand Central offers spacious homes with top class amenities. Thane is a much sought-after real estate destination for home buyers.

If you are a home hunter in Bangalore, Shapoorji Pallonji Parkwest will be a good option. Located at Binnypet, close to Majestic bus station, this property promises the best of modern day living to its patrons.

If you are looking for professional help in choosing a property, availing a home loan and preparing the documents, home loans by Bajaj Housing Finance Limited can provide you the ideal solution.