Key Takeaways: Begin your house hunt after considering the type of property, your affordability and your financial constraints.The process of buying a home involves analysing your needs, fixing a budget, hunting down a property that aligns with your expectations, planning your finances, proposing an offer, closing the purchase with proper documentation and then insuring the property. 1. Consider the choices Having a clear picture about what you’re looking for and why makes your way forward smooth. It helps you make an informed decision. Start with defining your purpose – whether you want to move in and occupy immediately, rent out the property, leave the space for lease or simply buy for investment. Based on your purpose, choose the type of property you want – apartment, villa, penthouse, gated community, commercial space or a plot. For example, if you’re looking to invest in real estate, a plot is the best and most-opted for, while for rental purposes, nothing beats buying an apartment. Most Chennaites looking to move-in are inclined towards buying properties in the proximity of medical, commercial, educational and other conveniences. This has made integrated townships a famous choice. 2. Fix your budget On average, a person living in Chennai earns about ₹33,800/month. Though the amount seems good enough, the race between savings and expenditure is neck-to-neck, with all the bills to pay. So when you’re planning to invest in real estate and know what you’re looking for, it’s important to fix your budget. When working out your budget, ensure that you consider your present level of expenses, savings, capacity for loan repayment (if required), future investment plans, and tax implications. 3. Shortlist the preferred localities The choice of location is what influences the cost of a property the most. Make a list of all the neighbourhoods you like starting from your topmost preferences. Then start ruling out based on your top priorities. Suppose you are buying a property for your personal use. In that case, it is best to consider localities that are well-connected and have proximity to your workplace, commercial centres, medical facilities, schools, etc. Sometimes, you may prefer a prime locality, but the rates may not fit your budget. In such a case, you can consider properties in its neighbouring localities. This way, you get to enjoy the amenities of the main locality for much lower prices. Some of the best localities in Chennai include Manapakkam, Kottivakkam, Kolathur, Adyar, Annanagar East, Sholinganallur, Chrompet and Velachery among others. Newry has ongoing and upcoming projects in many of the localities mentioned above. 4. Check for resale value and rental returns It is always good to analyse your Return On Investment (ROI). When it comes to real estate buying, the resale value of your property and the rental returns indicate your ROI. If you’re planning to rent out, buy a property that’s in high demand in commercially developed/developing areas with good accessibility to IT parks, manufacturing hubs, airport/railway stations, etc. for good-to-reasonable rental returns. The resale value is significant when you are buying real estate as an investment. To check for the resale value, consider the scope for commercial and infrastructure development in and around the neighbourhood, the connectivity and the builder’s reputation. 5. Evaluate your loan eligibility When applying for a home loan, the amount sanctioned depends on your repayment capacity, mortgage value, income, a track record of existing debts and loans (if any), age of the applicant, etc. The prime factors that you must consider to apply for a loan include the bank, interest rates (lower the better) and your current expenses. Banks offer several offers for first-time buyers and women investors. Choosing the top and credible banks for availing your home loan makes this tiring procedure effortless and hassle-free. 6. Be aware of the associated and additional costs Exclusive of the property’s purchase price, you can expect associated costs that are mandatory – stamp duty and registration fees. Only by paying this can you claim ownership of the property you are buying. Stamp duty is paid to the state government for the documentation of your property purchase, followed by which you will have to pay the registration fee to legally register all the documents. In most Indian states, the stamp duty and registration charges vary between 5-7% and 0.5-3%, based on the property value, respectively. In Chennai, the registration charge is 4% while stamp duty is 7%. The additional costs incurred are the commission for your real estate agent, lawyer charges for validating the property documents and payment for the surveyor to evaluate the property that you choose to pledge. Though you can save money by not hiring an agent and a lawyer, both the human resources prove to be very useful. 7. Safeguard your new property with an insurance There is a range of insurance policies with varying levels of protection & safety for your new property. During unforeseeable circumstances that lead to property damage, property insurance safeguards your asset. With that, we have covered all the different aspects you need to consider before buying a property and the process that needs to be undergone. Whether you are a billionaire or not, property investment is an expensive affair that requires much of your involvement, attention and money. So, be wise and make the right choice!
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