4 Questions You Should Ask Before Buying Property

Let's say, one morning you decide to buy a house, but you have serious reservations in your mind. As you are about to make the most important financial purchase of your life, you might be a little nervous and might have questions. Buying a home isn't as difficult as you might think, but if you think thoroughly through your requirements before you start looking for a property, the process will go a lot smoother.

Here are 4 basic questions you should ask yourself before searching for a home:

Why do you want to buy the property?

It's very important to understand the purpose of your purchase, as that will define the kind of money and time you should invest in it. It might be a long term investment, a home or a regular source of income. For example – if you are looking for a regular source of income you might invest in an assured returns commercial property. This might carry a higher risk but will also give higher monthly income. Buy-to-let is another option that people opt for, where you buy the property to let it on rent. This will require higher investment as you will be buying a completed property. It may not be very attractive but might be feasible as the rent can be used to pay off the EMIs and can prove to be a regular income.,

What kind of property?

What kind of property you eventually buy based on answer to 1st question depends majorly on your budget. You have multiple options in residential property i.e., plot, 1/2/3 BHK apartment, villa, independent house etc. For example – affordable plots are available mostly in the outer areas of city which are being developed whereas apartment options are available across the city. Villa though an attractive option will require heavy investment compared to apartments. Within apartments based on your number of bedroom preference your budget requirements will vary.

Where do you want to buy the property?

Location of the property is another important aspect, and this too depends on the purpose of the property. If you are looking for a long term investment, then invest in a property that is located in an upcoming area. Make sure the area is set to have complete infrastructure in near future and has some important commercial projects coming up. This will largely appreciate the value of the property. Also, if the area is not yet developed then it may be available at a lower price.

If you are planning to buy the property for end use purpose, then ensure that it has access to public and social amenities like bus stops, railway stations, health care centres, schools and commercial areas. Similarly, if it's a commercial property, then ensure that the property is well connected with proper transport facilities.

How will you finance your Property?

If you don't have ready cash then go for a property loan. You can avail upto 85 per cent of the value of an apartment (for an apartment of Rs 20 lakhs) and up to 80 per cent of the value of an apartment priced above Rs 20 lakhs as loan amount. While for a plot, the loan available could vary from 70-75 per cent depending upon the area and plot size. For commercial properties 50 to 60 per cent of the value of the property can be availed as a loan amount.

There are other criteria like the salary package, background and company details that the banks will take into consideration, but make sure to check the interest rates for the loan you plan to avail.

While these are some of the technical and legal issues involved in buying a property, choose the option that works best for you and fits into your budget. Buying a home is a personal decision and you need to examine your personal situation to determine whether it's the right buy for you.