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Home Buying Tips

Date post: 11-Apr-2017
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House Hunting Series Part-1. Preparing Budget for House Hunting - Buyinga 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. Example. My Budget 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
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Page 1: Home Buying Tips

House Hunting Series Part-1.

Preparing Budget for House Hunting -

Buyinga 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.

Example.

My Budget

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

Page 2: Home Buying Tips

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 orSociety 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

Page 3: Home Buying Tips

House Hunting Series Part-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 commonlyused methodis 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.

Page 4: Home Buying Tips

House Hunting Series Part-3

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.

Page 5: Home Buying Tips

House Hunting Series Part-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 .

Page 6: Home Buying Tips

House Hunting Series Part-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.

Under construction.

Buying a under construction property it involve few risks, completion of project

. We have to spend more time study about the under construction project

Page 7: Home Buying Tips

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 underconstruction properties.

IE. Virar West.

Old locality 1 bhk are selling at 28-35 lacs , But underconstruction property

at chikaldongri area

2bhk are selling at the same rage 28-35 Lacs.

Page 8: Home Buying Tips

House Hunting Series Part-6

Pre Approval of Home Loans.

Getting a Home loan will confirm your budget for buying home. Pre

approvedloan 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 ,

2Address proof like electricity bill

3 Salary Slip for 3 months,

Page 9: Home Buying Tips

4Form 16

5 Bank Statement for 6 Months

If You need a home loan assistance please visitwww.virarhomes.com

Page 10: Home Buying Tips

House Hunting Series 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.

Page 11: Home Buying Tips

House Hunting Series Part-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

Page 12: Home Buying Tips

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.

Page 13: Home Buying Tips

House Hunting Series Part-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

Page 14: Home Buying Tips

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.

Page 15: Home Buying Tips

House Hunting Series Part-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.

3 Registration.

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.

Page 16: Home Buying Tips

Happy End of the House Hunting.

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 . ream home.

House Hunting series end here, wish you all find and own your dream home.

Thanks all of you .

Team Virarhomes.com

Planning to Buy a Property In Western Mumbai Suburbs Please visit www.virarhomes.com or Post your requirement to [email protected]


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