What are the tips & precaution that should be taken before buying a property?
There are many things to consider before buying a property anywhere. They are as follow:
- The most important decision a common person takes hardly once or twice in a lifetime is their decision to buy a property.
This is a very emotional decision and before buying a property I would suggest you some few tips you should keep in mind.
- Do not be in a hurry to finalize or buy a flat or property. Assess and your requirement whether you are buying just to take the benefit of an income tax rebate or to generate future income or you need premises to stay.
- Sometimes it happens that we had sold our earlier property and need to re-invest in another property
- Before deciding to buy a property first exactly which location are you interested in?
- What is the budget which you feel would be comfortable for you
- One of the mistakes which we make is we go by the media reports that the property market is going up or property market rates are going down. It is not so in all the circumstances. Supposing you want to buy in areas like Porvorim Goa the Property rates here are not going down but if you see Yamuna expressway in Delhi in Noida the prices there are falling. It is not necessary that if the prices of one area are falling the other areas will fall or vice versa.
See the trend in last year how the properties prices have behaved and then take a call.
- Assess and find out the reliability of the person you are buying property from.
- If you are buying old property or old apartment or a Villa, before finalizing it take help of properties stability agency . in the present technology, they can assess in the property whether there is any leakages or seepages for unstable construction or any fault in electrical lines wiring the situation of the water tanks, the stability of the building Etc. you have to pay many times from your nose to get it repaired later on but if you know the situation whether to buy, might as well you can avoid by these types of properties.
- Many time a home buyer face harassment after they have paid the price for a property. They discover that the paper works a defective, sometimes the title is not clear, sometimes there is their mortgage on the property, sometimes in litigation in the property within the family, sometimes the seller has already entered into a contract to sell a property to somebody and taken advance money.
Sometimes the seller has fabricated the documents and sold you although he is not a real owner. Many property buyers face these types of issues.
The best way to avoid all this is to get the titles of the property checked through a proper lawyer and publish, notice in a newspaper with your intention to buy it.
Utmost care should be taken and one must be very careful in checking the titles before buying a property.
Is it advisable to avail housing finance scheme or home loans?
The advantages of taking a housing loan are
- The housing financial organisations or the banks verify the title of the property thoroughly and make sure that you do not get cheated.
- The documents are in safe custody with the bank and you need not worry about the safety and security for the property document.
- Recently there is a scheme by the government of India that if your income is below 18 lakh rupees per annum you are eligible for a subsidy of up to 1.5 lacs for the housing loan interest.
- Tax Benefits on Housing Loan
On the principal amount, Rs. 1.5 lakh can be claimed as tax benefit under Section 80C of the Income Tax Act.
Deduction for Interest Paid on Housing Loan. ... The interest portion of the EMI paid for the year can be claimed as a deduction from your total income up to a maximum of Rs 2 lakh under Section 24.
If you are staying in a rented house it is advisable to think to purchase house of your own by availing the housing loan finance.
If your credit scores are good you can get up to 80 to 90% finance on the property purchase.