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Key things to know before buying a property

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Key things to know before buying a property

For the very first time, home buying can seem to be an intimidating experience indeed. However, there are several things that people should keep in mind before purchasing real estate. Here are key points to be considered in this regard-

  • There should be a carefully decided strategy/blueprint for buying property and the contribution towards down payment can be amassed via mutual funds, SIPs and the like. One should always have a decent credit score for scaling up one’s eligibility for property buying. One should ensure thorough research in order to choose a property that generates good returns.
  • There should be a focus for buyers on the credit tips. There should be thorough checking of the specific demographics of the location in order to earn good returns in case an investment property is being purchased. The rentals and the appreciation for the last three years should also be checked. Social amenities in the area and future infrastructural developments should also be verified carefully.
  • There are several kinds of loans which can be taken for property purchases. There are options where EMIs can start immediately in order to save money on pre-EMI interest and loan against property as well. Buyers can also get loans at lower rates of interest while there are top up loans which help buyers get an extra loan over and above the home loan amount.
  • Buyers seeking property should emphasize on GST, higher down payment amounts and payment terms and conditions. The property size is also vital. There are multiple affordable housing choices in the market currently and this is helpful for those who have smaller budgets initially.
  • There are several tax benefits available on home loans. Buying properties with occupation certificates is a good option indeed. There are several real estate developers who are offering zero GST offerings for buyers. There are package buying deals which will help in garnering higher tax savings. There are savings up to Rs. 2 lakh on interest on home loans and Rs. 1.5 lakh on home loan principal repayment.
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