We all have a common desire in our life to spend quality time with our close ones. We work hard to bestow our parents and children with a pleasant and stress free life. Owning a home is the foremost way to keep their life in a congenial mode. Owning a home not only makes living enjoyable but also set us free from the tedious job of shifting. A high rent has to be paid every month which is almost equal to more than half of monthly installments and have to bear a heavy loss due to damaging of precious articles while shifting. What if it is a first time you are buying a home? Whom should you approach initially or what are the essential points before finalizing any deal?

Cost of property is on rise in Tier 1 cities i.e., cities with more than 1 lakh population and if we consider middle class inhabitants then a due diligence is required. Buying a property is a tiresome and stressful job, we have to run after a builder and it is risky also because we are on the way to spend our life time saving. It is suggested to be vigilant while dealing with property.

Let us discuss some points that could help you in taking right decision

Budget

Budget is the foundation step, finalize your budget before approaching property dealer. A home can be purchased by paying whole amount in cash or you can apply for home loan. If you are paying in cash then no worries but if you are applying for home loan then hold this –

Suppose you have set your budget to 40 lakhs and are planning to take a loan, in such a case you have to pay a down payment of 20-25% of home loan. A down payment is an amount which bank does not pay, this amount has to be disbursed by you. Here, down payment of around 8-10 lakhs is calculated.

Now, Loan amount is the amount which bank pays to the builder, it is calculated by deducting down payment from total amount. Here our total amount is 40 Lakhs and down payment is 8-10 lakhs, then a loan amount of 30-32 lakhs bank will pay. Generally this loan amount is payable in instalments.

How much amount of loan you are eligible for?

Eligibility of loan amount is determined by salary amount you take home. Total amount of loan is 60 times the salary you are taking home. A person alone or husband-wife together taking home salary of 50,000 is desirable for getting 30-32 lakhs loan.

Find a right builder

Although finding a right builder is not an open and shut case but it is not a wild goose chase too. You can find builders over the web easily, read reviews about his work or concern with your friends or family members.

Property Assessment

(i) Compare properties of various builders like nearby facilities available

• School
• Hospital
• Grocery Shop
• ATMs
• Banks
• Malls
• Public Transport

These are the basic prerequisites for any house holder, it is suggested to keep an eye on these conveniences.

(ii) Avoid locations with low rental value area, high traffic, noisy or busy highways. These factors depreciate the value of property.

(iii) It is expected that value of property will surge in approaching years, locations which attract investors or foresight of opening of any public sector project could tremendously accelerate property value.

Now no matter if you are dealing in property for the first time, just be specific with your requirements. Enjoy your visits to different property dealers and scrutinize properties by keeping above mentioned points.