Points To Remember Before Buying A Flat
Purchasing a property is one of the most important decisions in one’s life. We tend to make mistakes, which sometimes cost us a lot in the long run. Investing in properties is not as simple as it seems. Before proceeding, one should think about the investment benefits, the appreciation value, the home loan approvals, the builder repute, and the legal hassles etc.
If you are residing in Kolkata and looking forward to buying a flat in South Kolkata, make sure, you are aware of the key points. Below is a checklist that will be very useful when buying your dream property.
Know the Purpose
There are usually two kinds of requirement. Some purchase a property for investment, whereas some look for an ordinary rental income either from a residential or commercial property. Make sure you determine your purpose first, which will give you a clear guidance for your decision. Remember that a house purchased for rental or investment needs and a home purchased for a living should have a separate treatment as several factors are concerned there.
Know the Total Area Vs Carpet Area
There are many builders who are not transparent in pricing, especially for the total area. For example, if a builder states 1,500 square feet as the flat area and quotes a rate around Rs 3,000 per square feet, then do not get tempted at all. You never know, this can be the super built area of the flat and you require reducing 15% – 20% space, (common area) to get the built up area. This means the developer is charging you around 20% more on the rate mentioned and you get only 1,200 sq ft as carpet area. This means, for Rs. 45 lakhs, the carpet area is 1,200, which works out to Rs 3,750 /- square feet.
Know the Existing Home Loan Charges
Banks usually tempt buyers and offer house loans at cheaper interest rates. Usually, they offer low-priced home loan rates in the initial years. Example: A buyer once took a home loan from LIC HFL, which was a fixed amount for two years with the rate of interest 10.25%. Later the bank increased the amount to the floating rate, which was above 11%. This means the EMI would jump automatically without any reason. Therefore, it is always advisable to know and learn about the home loans charges properly before you proceed with the buying of a property.
Work on the Household Renovation/Repairs/Additional Facilities
If you are buying a second house, it is important to renovate or repair the residence. If it is flat then you may require some additional facilities, which the builder may charge you separately. Make sure that the additional costs are accounted for.
Use Your Own Money than Home Loans
Check your sources of funding, as soon as you know the cost of your flat or home. When it comes to funding, you may have hard cash, stocks, tax-free bonds, mutual funds, etc. Make sure, you keep some capital as your emergency fund and then accordingly decide your home loan requirement.
So, make sure you remember all the above points if you are planning to buy a flat in South Kolkata.