Do you know with your great decision you can afford risk free dream home for yourself and save maximum?
Owning a home is a special feeling especially when it is brought from your hard earned money.
We always wanted ourselves to be covered from any risk while going through the process of buying home.
Sometimes we need to wait till we get possession and some more wait continues till we register our home on our name as owner.This is my story,I Saved 35 Lacks while buying a House in India.Though Saving is one of my most talked project that i was working and still learning in India.
The most successful project that given me some financial balance was trying to create a buzz .
Many times the journey from buying our house till registration is painful.
We not only loose our precious time but we lose money in terms of EMI and rent towards any rented house if we are affording.
Very recently I owned a house in India (I am going to refer any flat, villa or residential property as Home or House in this article) and moved in quickly before my first EMI starts.
I am going to share you some of my best decisions and experiences while buying my dream home in a well maintained and reputed society.
While decided to buy a house in India you have 2 options basically. First- Buy from primary market direct from builder or company.
Second-Resale market, Buy from person directly who is owner of house. I am not going to advice to buy from investor companies due to my approach of being for best decision for certain criteria which I will explain later.
Buying House in India from Primary market from Builder, Company or Developer
When we are decided at our budget, Location, Type and other requirements, it’s time to buy a new house as per our need. Buying a new house in India from Builder or company for a newly launched project or in an under-construction project is beneficial for some factors like:
- We have variety of options to choose according to our budget.
- Options to choose direction of our new house and tower/lane as per the availability in builder’s inventory.
- Options to choose payment schemes.
- Low EMI and low price of new house.
- No middle man factors, you know whom to contact for your every query.
- Accurate completion estimate time.
- For investment purpose good to get awesome returns when completion.
No doubt buying a new house in India from builder or developer is very beneficial for many factors.
But what about if you came across any of these hurdles:
- The permission or approval of project got into some legal problems from authority somehow after few months or year.
- Long delays in possession.
- Builder change the planning architecture of your society in middle of construction phase, like not making any big club house now what was shown in planning phase.
- You are not able to register your house on your name because of some problems between builder and authority.
- Project not getting completion certificate due to many pending works.
- Builder cut off many facilities or did not completed it and landscape architecture was modified.
- You are paying EMI and rent both.
These types of misfortunes can happen with anyone, especially the way real estate business goes up and down.
I was able to buy my dream house in India without any hurdle and was living in the house when paid first EMI. Saving very good money was another best thing happened to me while going through the process of buying my house.
As we proceed from here i am going to share you my decision and some tips to take care while you buy house in India.
Two or three projects suited to my choice. I quickly went to their websites and tried to collect as much information as I can.
Websites can give you an overall idea of project including price (but not all builders put their price listening, you may have to contact their representatives for price).
I wanted to find out practical situation of the projects which is only possible at the grounds at site.
After looking from few resources on internet it was clear, out of three projects one was ready to move and families were residing in it.
The other two were under-construction project but were of good value. I went to see all of these projects, I visited actual grounds, site offices and tried to contact some of buyers in order to get some practical experiences on the projects.
Buying a house is a very big investment, some of us call it a lifetime investment. You have to look for every aspects.
I also wanted to be very cautious while taking any decision on this big investment.
I talked to some of experts in property dealing (roughly any of them impressed me, everyone do have their own views), I also talked too few people I know who has invested in residential properties either for themselves to move in or for investment purpose. After few days I was having tons of ideas and some real life scenarios.
I really wanted to filter out something which can give me my best decision for buying my home and you know what, finally I was able to get it.
How about if I say, I bought a resale house but it was brand new with age less than 1 month and less than 10 to 15 lacks what was the selling price of that house in market by builder.
Yes that’s true and I can let you know what concluded this as best decision of mine towards buying my dream home.
With my research I was doing for few months there were some key points and very important things I noted.
- To buy a house in a project which is completed newly or almost completed.
- We can practically see landscapes, outdoor and indoor facilities, already constructed homes to check the quality of constructions and other things.
- Check developed nearby areas and facilities like accessibility, hospitals, offices, markets and schools for children.
- Talk to people who are already living in the society and get some views on their experience with the project and society maintenance.
- Visit society more than once during different hours, also at night time to see how safer society is and how it look to be there at night time.
- Check society security arrangements, how safe your family will be there.
- Inquire if more families are getting possessions and registration is ongoing for the homes on owner names.
In a newly constructed project you have two options to buy, one from builder and another from a real owner. Both of your choices will definitely get you a home quickly but approach will be little different.
I choose to buy house from an owner who got his newly constructed home just 1 month ago and he was willing to sell it to get some returns.
The house was new and untouched by anyone since no one was living in it after possession. The best part- house was registered on owner’s name. I was able to verify from every legal resources about the legal existence of house and all details related to it since it was registered.
How safer side we are when a property is registered legally in this case?
Well, to me, when a house in India is registered on owner name in a society then few positive points to notice:
- Project has got complication certificate, if not 100% then atleast for a very good stage.
- There doesn’t seems to be any legal problem with the project.
- No issues between project and authority
- Builder or Developer not having major problems on their side.
All of the above can be situation dependent but mostly correct. After all we also want our house to be register on our name as soon as possible.
After looking few options in the society I choose to buy a home that was full filling my criteria like Direction, space, vastu etc.
Doing negotiations is a self-developed smarter way of dealing things. That was one of best part happened to me.
I was able to negotiate price to an extent what my pocket was allowing keeping some money for later expenditure like registration etc.
The whole process of buying a resale home took almost 45 days. The whole amount was given to owner and home was registered on my name as a new owner. Key of our new home was in our hands.
There are few points to remember when you are trying to buy home in resale:
- Buyer and seller has to enter into a legal contract agreement for duration 30 to 60 days, which means deal of this purchase should be finished within that duration. If you are a buyer I will suggest to get maximum days in your contract as possible because some legal work takes time.
- First phase will be to take NOC from builder or developer by seller.
- Next step will be to take permission of transfer property on buyer’s name from legal authority. Just remember this is only permission and does not mean real owner has lost all authority on his property. Property is still registered on owner’ name.
- After permission of transfer next is registration date, for which a representative of builder, owner, and new owner and bank personals needs to be present.
Our EMI was scheduled to start from 5th of next month and we entered in our house just after a week from registration. So when our EMI started we were already living in our dream home.
Now the best part of this deal was huge savings for me. I know I could have purchased this home 5 years back minimum at launch date when price was lowest but I did not wanted to face any unexpected hurdles what I mentioned above.
I selected my budget, project, home, done payments, registered my property and moved in quickly. No waiting or running behind builder for possession dates and paying anything unnecessary.
Now coming to saving parts. My huge savings happened at each and every stage.
I am going to break it down as below:
Saving on buying resale house from owner on a negotiation price as compared to market price – 15 lacks
Making all proceeding steps by myself and not involving any property dealer or agent – 2 lacks
Saving on making Deed and dealing with builder’s advocates – 50 thousand
Saving on tax for seller property purchase value – 60 thousand
1 year maintenance charges for society – 40 thousand
One time Car parking, club charges, cooking gas, electricity, and intercom etc + taxes ( GST etc) - 7 lacks & 50 thousand
Saving on rent (15 k) considering I could have purchased home which was expected to deliver after 5 years – 9 lacks
Saving on Tension, stress, problems while dealing with owning new house and running behind the builder – Infinity
So overall my saving in purchase of my new dream home was: Rs 35 Lacks + Infinite saving on problems with purchase phase till possession and registration.
Abhishek Anand is a finance blogger and entrepreneur. He loves to talk about personal finance and loves to share his knowledge and personal experience on Finance. He has some amazing articles about Money savings and money growing on his startup Wisemoney.in .Write to him on firstname.lastname@example.org