Checklist - What do I look out for when buying property?

When you buy a property, you are investing a substantial amount of money and long term financial commitment.
This property is also taking care of your long term housing needs, and for most people, it is not an excercise that you will repeat very frequently in your life.

Its thus important to plan your purchase. We aim to give you a basic checklist that will make your life easier:

Budget and Affordability:
Ensure your total monthly housing loan instalment does not exceed 33% of your monthly income. This will help ensure that you have sufficient cash for fulfilling other objectives such as investment, retirement. Location is a very important consideration in the selection of your property. A well-maintained property in a good location will lead to would be better able to sustain its valuation.

Site Visit:
You should personally inspect the property before buying it. Look out for any defects.

Surroundings:
The surrounding of your property (neighbours, industries, view) are also an important consideration.

Home Loans:
When shopping for the right home loan, keep these in mind:


Loan duration: Check the maximum loan term that you can get - normally, it is 20 years or till you retire.


Plan for the rainy day: You should set aside cash to pay for at least six monthly instalments.


Payment projections: Compare the EMIs (based on different interest rate scenarios) from various banks to see if you are comfortable with the amount. Remember that interest rates change over the duration of a loan. Stay comfortable instead of stretching yourself too thin.


Extras: Check if the bank gives free Life Insurance, Burglary/ fire insurance etc.


Penalties and fore closure: Check what the fore closure charges are that will be charged to you if you do a partial or full redemption of your loan. Also check how long the penalty period is.


Other costs: These include legal fees, valuation charges, etc.