Everyone wants to buy a home as owning a home is not only a status symbol but has become one of the most significant ways to build wealth. Purchasing a home is perhaps the biggest financial decision you’ll ever make, but most of us are not aware of the intricacies involved with purchasing a property/villa in Bangalore
Purchasing a property/ independent villa in Bangalore may need extra caution due to legal and regulatory issues. If you are planning to buy a property in Bangalore the below-mentioned suggestions would clarify your confusions
Price and Your Financial Status: The cost and affordability are the biggest factors in buying a home. Find a loan that works for you ideally, loan payment should be within 30% of your gross monthly income. Don’t take on a financial obligation that can ruin your monthly budget. Compare the loan amount to what you’d pay for rent. Keep in mind that when you purchase a property, you can deduct the interest on your loan and property taxes. The higher the down payment, lower is the debt for you. The lower the debt, the better you will be able to handle your finances and still own your house.
Locality and Neighborhood: Evaluate the location of the property; check how far schools, hospitals, and marketplace are from the property. Check out the approximate distance from your workplace. How much time will it take every day to reach your office? Ideally, the residential property should be located within a radius of 30-minutes distance from your office. Take into account how moving would affect your transportation costs to work. Choose a property which gives you the best advantage and value for money in terms of locality, connectivity, and good neighborhood.
Builder Reputation: Check the history and quality standards followed by the builder. A visit to old buildings constructed by the same builder will give an idea of the quality standard. Past history will reveal whether the builder will provide the property on promised possession date or not. Inspect the work done by different builders in the same location. A view of different projects will give you an idea about Quality, Facilities, and Price.
Price/Return on Investment: Survey about the prices find out which area or which property will fetch you a better return on investment in the long run. Keep in mind that the most economical one may not be necessarily the best in terms of quality and facilities. Invest in a property which is likely to appreciate more in the future.
Legal checks: Local government is the approving authority for building construction/maps. See that the developer has obtained approvals from the Municipal Corporation, Electricity Boards, Area Development Authorities and Water Supply and Sewage Boards.
- a) Sale deed:Ownership of the land can be traced from this document. It shows details of the property and the subsequent series of transactions it has undergone.
- b) Get hold of the original papers this will help you find out the sort of usage allowed from the property i.e., is it commercial, residential, mixed, etc.
- c) Find out if the property is freehold, leasehold or a government accommodation
- d) Check that the owner has the encumbrance certificate
- e) Execute a registered sale in its absence you may not get valid title to the property
- f) Ensure that all taxes have been paid to the government and the seller has receipts of the paid taxes.
Add-On Expenses: Keep in mind apart from property cost, there are several add-on expenses. Stamp duty, registration charges, parking space charges, service tax, home loan processing fees, club membership charges, electrification charges, preferred location charges (PLC), etc. Some of these may be over and above property cost, paid to government agencies.
Avoid acquiring a property through Power of Attorney to prevent any litigation in the future. Ensure that all the agreements are stamped according to Karnataka Stamp Act, 1957 following all the rules therein.