Home Buying Tips - Preparing Budget
Buying a home is still dream of majority of people living in Metropolitan city like Mumbai. It is is a lifetime decision or many and it require lot of planning and research . Preparing Budget is the most important one , without money we cannot buy house. Prices of a property is determined by Locality, amenities, structure strength , Beauty, lifestyle all comes with a price tag. So first thing we have to do is creating the budget for house hunting .
Budget = Cash On hand + Loan Available & Affordable.
Cash On Hand - 500000
Loan Available - 1600000
Total Budget- 2100000
Emi Per Month- 16000
To close a property Deals have to Mach your Budget with Cost of Acquisition.
Cost of Acquisition
Down Payment - 400000
Loan Available - 1600000
Other Expenses- 100000
Total Cost- 2100000
Down Payment - Down payments are essential Minimum you must have 20%.
Housing Loan - Bank will pay Loan amount to be paid to seller
Other Expenses - It has to be paid by Buyer.
1. Registration , Stamp Duty, Service Tax, Vat ( Government fees which are applicable)
2. Society formation charges or Society transfer charges. Loan Processing fee.
3. Fees Legal, Brokerage.
Home Loan : Bank & Housing finance companies will provide 80% of cost to purchase a property it depends on your eligibility criteria it is works out based on Your Income , Your Exiting Debts, Bank Interest Rates. Your credit rating.
Please visit to find EMI . http://www.virarhomes.com/home_loan.php
Home Buying Tips 2- Shortlisting A Suitable Location ( City) to Buy a Home.
When we are planning to buy a Home 2nd thing come to mind is where to Buy. In first part we prepared the budget for home purchase . Location selection is determined by various factors like Budget and Family , Working Place of Family Member. Most commonly used method is if we have a limited budget buy a Decent home like 2bed flat at good location . It should 1 hrs. travel distance to work place it must have good connectivity by road and train/ public .It is good Practice it will give family members , wife , Children’s , Parents have a comfort place to live and give the children is better education and life style.
Ie. Working in Andheri (Mumbai) Buying Home at Vasai (Mumbai Suburb)
Other options is to buy a small (studio Apartment ) home near work place it is feasible for bachelors or Working couples . Cost of Living near posh areas are high. So we cannot provide quality space nor lifestyle to children’s and parents.
So locations is the most important one , Please research each location on net and personally visit Places see basic amenities Like water, Electricity, Schools,Hospital,Market , transportation Life style Amenities like Malls, Hotel Cinema Accordingly. And write down Positive and negative points.
Home Buying Tips- Shortlisting A Suitable Street to Buy Home.
Earlier we have discussed how to select a city or location , here we discuss how to select a street or local area in the preferred city.
Present market situation prices are determined by street and locality and complex amenities basis.
Here is an example about Virar . 1 BHK Flat - Near Station 27-30 Lacs D,Mart Area 30-35 , Global City 24- 27 Lacs, Bolinj 21- 28 Lacs . You have to select a locality based on your budget and requirement.
There are several real estate portal which give locality insights in each city here is few reference , 99acres,Magicbriks,housing, common floor , virarhomes.com . Now you can see the ongoing pricing of each locality based on the property listing of each locality from these websites . On this research you have to note down the ongoing prices and advantages and disadvantages for each locality.
Home Buying Tip 4- Fix a Time Frame to Move to New Home.
You must aware than how much time you need to move to new home, here is few example.
Immediate - Resale/ Ready to Move Apartment from Builder.
1 Year - Semi Finished apartment by builder and Investor.
2-3Year - Under construction Property
Ie. Ready to Move Price - 6000 Semi finished Rs. 5500/- Under Construction Rs.5000/-
If you have more times you can buy better apartment at discounted prices at under construction Building. It can be also used for Budgeting purposes .
Home Bying tip-5 - Looking for a property in Ready to Move | Under Construction
Advantage of Ready to Move & Resale Apartment
1 Can inspect each part of house. Understand how the society and neighborhood.
2 It does not involve any big risk to buy a ready to move or re-sale property.
3 Save Service Tax & Vat. Save society formation and development charges.
4 Save will get the procession of property immediately.
Disadvantages. Don’t get any discount in prices.
Buying a under construction property it involve few risks, completion of project . We have to spend more time study about the under construction project before buying check out the necessary approvals , paper works by legal advisors, check credibility about builder .
Now real estate market is going through one of the worst financial crisis , Re-Sale and Ready to Move prices has not corrected as much In affordable market segment. Due to the financial crisis and overflow of new projects outmatch the demand you can get huge discount from builders in most cases. Due to this risk and market situation we can buy 2bhk at the cost of Resale -1bhk in under construction properties.
IE. Virar West.
Old locality 1 bhk are selling at 28-35 lacs , But under construction property at chikal dongri area 2bhk are selling at the same rage 28-35 Lacs.
Home Buying Tips -5 - Pre Approval of Home Loans.
Getting a Home loan will confirm your budget for buying home. Pre approved loan will help you to negotiate for better prices with the seller. HDFC, ICICI BANK, SBI, LIC HOME FINANCE, GIC , DHFL are leading Home financing companies in India. Interest rates vary from 8.5 %to 12 % depends on banks and your credit criteria. Most of them are professional in assessing the property and title they will assist you in paper works related to the deal. It is a good help for a home buyer. You can approach bank directly or through intermediaries , you must prepare the basic documents before approaching them.
Here is the list of Basic document for required for a home loan salaried person.
1 Pan card ,
2 Address proof like electricity bill
3 Salary Slip for 3 months
4 Form 16
5 Bank Statement for 6 Months
If You need a home loan assistance please visit www.virarhomes.com
Home Buying Tips Part- 7 Selecting a Real Estate Broker.
Real estate Brokers are important for a house hunting. Because they will provide you with helpful information on homes and neighborhoods that isn’t easily accessible to the public. Their year of experience and knowledge of the home deals , negotiating skills, and familiarity with the area you want to live in can be extremely valuable. If you are paying a fee it is worth it. You can use real estate portal like 99acres, magic bricks, housing, virarhomes.com etc to find agents in that locality. Make few references of brokers from that area is good. Make sure you are getting assistance from right broker.
Home Buying Tips -8 Home Search and Shortlisting
We have completed Budgeting and Selected, Location, Street, Pre Approval of Loan and Real Estate agents for our House Hunting. Now it is the time to start searching homes at selected location. Nowadays the easiest way to for to Search for Homes t On internet , there are several real estate portal and providing listing details . The Leading real estate portal in India are following 99acres, housing, magic bricks local real estate portal like virarhomes.com for vasai,virar,nallasopara. You can see and evaluate prices of each one in selected locality and note down the prices movement , if the property is not sold for few week they will reduce the price it take hours & days to complete this process, meanwhile you can see the advertisement in news papers , I am sure you will get complete idea about the prices in that locality.
I wish share one Important tips with you, always try to buy home at reasonable prices than cheapest prices. I will explain one example if you have a budget 10-15 Lacs planning to buy property at virar the market rate for this area is 4000 to 5000 normal budget for to buy a 1bhk flat in virar is around 25-30. You can fiid advertisement at substantially lower rates which indicates the home may be illegal or which have sold by some troubles builders and scamsters. You have to choose location as per your budget never try to do bottom fishing .
Then shortlist the property you are interested and ask your real estate agent or seller for arranging the site visit and inspection. Once you like a property, inspect the building properly and enquire about availability of water and electricity . Inspect flat property properly and ask seller for to repair all those things at their cost.
If you ask your real estate agent to arrange all property paper for inspection if the papers are alright you can get in to the next stage Deal we will discuss that on tomorrow.
Home Buying Tips-9 - Finalization of Properties and make an offer.
Inspect all selected property in details like, like leakages, electrical problems, water supply, Internal and external , You have to take as much as time to find the right home , it is your lifetime decision make sure everything is right and consult with your family and agent and ask him to negotiate for better prices based on prices on similar homes in same locality . Negotiation of prices will play an important factor , don’t hurry in to the deal , for at the time of negotiation you have to show the seller your Pre-Approved home loan. Always keep one check in your hand. If you display all these things seller will realize you area series party . You must use your Agent negotiation skill ask him to start a price close to deal price which you have in mind, don’t give unrealistic offer it will create ego in mind of seller.
One both seller and buyer are agreed on a certain price , you have pay token payment and ask your broker to prepare the initial set of document like MOU. Make sure you have to discuss time Limit for final payment. Token Money is a small some paid of assurance of deal . After completion of initial payment you have to approach Home Finance banker to evaluate the property . Banker will appoint an appraiser is a member of third party and not associated with the banker. The appraisal will let the parties involved to know the price is fair.
Home Buying Tips -10 - Documentation for Legal & Home loan.
Hire a legal adviser who can assist you to do all paper work .
1 Payment .
2 Agreement for sale.
4 Stamp Duty Payment
5 Home Loan documentation.
6 Share Transfer.
7 Verification of documents.
Involve Your Banker will also verify you are dealing with the owner of the Home
Pocession of your Dream Home
Buyer and seller have to sign all necessary documents and had over the original set of documents to to banker after few days banker will pay the balance amount to seller and seller will gives the keys to you . wish you all find and own your dream home.
Thanks all of you .
Need an assistance to Buy A Home In Virar- Vasai- Palghar we are happy to assist you from Planning to Buy a Property . Please visit www.virarhomes.com or Post your requirement to Info@virarhomes.com or call us +91 7770078333