Buying a home is one of the most crucial decisions of your life; it involves putting years of saving at stake. A wrong decision and you can ruin and jeopardize your future. Therefore, it is important that you make sure that your investment is safe. Here are a few things to keep in mind when buying your first home: -
• Super Area vs. Carpet Area When you buy a home, most real estate companies and property dealers will quote the super area of the house. This is the measurement that will also be used for the calculation of the price of the property. But in reality, the total surface area of the house will be lesser than the super area. The actual floor area is called the carpet area. In most cases, the carpet area is 80 per cent of the super area. The super area includes common areas such as the staircases, lobby, elevator space, shafts, etc.
• Does the Project come under the ambit of RERA? The Real Estate Regulation Act (RERA) came as relief to homebuyers. The act ensures timely delivery of the project by preventing the real estate developer from channeling the funds to other projects. But keep in mind that some states have still not implemented RERA, and in some places, older projects are not covered under the new Act.
• Does the Project have Necessary Approval? Before you finalize the purchase, run a due diligence on the project title and status of various approvals and permissions. Banks and some other agencies can do this on your behalf for a small fee. This is especially true for banks. If you approach a bank for loan, they will run a due diligence, and if everything is right, your loan will be approved. If the project doesn’t possess the necessary titles and permissions, your loan may be rejected.
• Is it easily accessible? One of the most critical things to keep in mind while buying a house is the location. Try to shortlist is a house that is close to the workplace as well as other facilities, and is easily accessible by various modes of public transport.
• Can you afford the EMI? After you have shortlisted the house you want to buy, the first thing you need to do is assess if you can afford the EMI of the home loan you will be taking. As owning a home is a cherished dream of many, people get emotional, and end up overstretching their finances. Keep in mind that ideally, the home loan EMI, maintenance charges, property taxes and sundry expenses on the house should be within 30 to 35 per cent of your monthly income. Also, make sure there are no hidden costs. Many real estate developers offer “free goodies” such as appliances and free wood flooring. This might sound good but in reality, the cost of these products is charged into the price of the property. Keeping the abovementioned points and researching before buying your first house can save you a lot of hassle later on.