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10 Points to Remember When Buying a Flat

Purchasing a home is one of the most financially sound decisions one can make. Any decision taken in a hurry might lead to many problems. A significant number of the issues can arise from both legal and financial perspectives. Therefore, it is essential to remember the following points when purchasing a flat or an apartment.

Read more

10 Points You Can’t Miss While Buying a New House

Here is a guide with ten tips that will help you understand and apply the principles that will ensure you purchase your flat wisely:

  1. Budgeting It Out

    When you decide to purchase an apartment, your budget is the first and most important thing you should check. The budget you select should be based on two critical factors. First, it must comprise around 40% of the total income, including the absence of any outstanding debts. The second factor is that an advance payment of approximately 10% of the total amount should be paid.

  2. Best Locality for You

    Another point that you should keep in mind is the location of the apartment that you are looking to purchase. Looking at the locality, the amenities, and connectivity is the best way to learn about the property prices. Some of the most important questions you need to ask are as follows:

    • What is the distance from your workplace to the building project location?
    • How many modes of public transport are available around the location?
    • Is the quality of life in the surrounding areas?
    • What is the quality of essential services like water and electricity?
    • What is the proximity of facilities like healthcare, education and entertainment?

    Understanding that property prices will increase or decrease depending on the locality's future is essential. Hence, it is important to understand the most suitable locality to buy a flat.

  3. Configuration & Floor Plan

    The next point is the configuration and floor plan of the flat. You can select it depending on your family's requirements and size. However, if your family requires a higher budget, you can look at another floor plan within the chosen building project. Other alternatives include exploring other under-construction projects that can provide additional offers and discounts.

    Including the above, specific terms are related to the floor plan mentioned below. These terms are helpful in further understanding how it affects the price of a flat. Here are some of the most important terms:

    • Carpet area
    • Built-up area
    • Super Built-up area

    Apart from the above, the configuration of your flat is also included in the price of the flat you intend to purchase. The most common configurations provided in any building project are as follows:

    • 1 BHK
    • 2BHK
    • 3BHK

    Depending on your budget and family requirements, you can choose the most suitable flat according to the configuration and floor plans available.

  4. Facilities & Amenities

    Amenities are additional features the builder provides for the project, whereas facilities involve the residents' safety and security. Before exploring options for new flats, it is essential to think thoroughly about the amenities and facilities you require.

  5. Land Record & Legal Aspects

    Some important legal aspects that must be fulfilled when purchasing a flat are approvals, certificates, land records, and other legal documents.

    The land where the flat is built is another significant that you have to consider. You mustask the broker to make you understand the soil quality as it can differ from place to place. Checking these will ensure that you do not run into issues caused by fraud.

    Besides, legal documents like RERA registration, a title deed, a sales deed, and a No-objection Certificate are some of the most important documents that must be checked. Once you have received the stamp duty and registration, you become the official owner of the flat.

    You may also read Avoid 6 Mistakes and Get the Best Deal When Selling Your Home

  6. Analysing and Choosing the Builder

    Another significant factor that is fundamentally required is the choice of builder. Before purchasing a flat, it is necessary to check the builder's credibility. Doing so will help you stay safe from fraudulent or unfair trade practices commonly observed in real estate transactions. Some of the most frequently observed unfair trade practices could be avoided with the following steps:

    • Researching the track record of the builder is a good starting point. It will provide you with ample clarity on the financial and legal history of the builder. You will also know if they could deliver past projects within the said timeline and their quality. Financial transparency, reviews and ratings, testimonials, and awards prove the builder’s validity.
    • RERA approvals are another essential part of checking and choosing the builder and their project. These require the disclosure of the floor plan, timely completion of the project, the limit of advance payments, repairs in case of bad quality, rights to information, and redressal.
    • Builder ratings are also essential to analysing and choosing a builder. The ratings provide an overall viewpoint of their performance based on construction quality, financial strength and funding of the project, legal compliance, innovation and design language, and customer satisfaction.

    Apart from all the above points, taking the advice of an experienced real estate advisor can aid in understanding the performance of the builder. It is essential to understand the above factors, which can help you make the best decision.

  7. Financing Bank

    Once you have decided upon the builder, you must understand your eligibility for getting a home loan to purchase a flat. Remember, a financing bank will sanction a home loan that is around 40 to 50 times the amount of your monthly salary. However, the amount varies based on your selected bank and loan duration. In addition, you must check whether the bank you have chosen is willing to finance the respective builder or the ongoing project.

    You may also read Is it Mandatory to Buy a Home Insurance Policy for Your Home Loan?

  8. Builder-Buyer Agreement

    Once you have decided on the flat or the house you plan to buy, you can book the place by transferring the token amount. In return, you will receive an allotment letter from the seller or builder.

    Next, a tripartite agreement is made between the buyer, the bank, and the builder/homeowner. To avoid any future discrepancies, read the agreement's terms & conditions carefully. In case of any doubts, raise the points and ensure all the clauses are fulfilled.

  9. Other Deeds

    The steps of buying an under-construction flat and a ready-to-move flat are pretty different. An under-construction property involves verification, payment of booking amount, sales agreement, home loan processing, regular payments, project completion, sale deed, and stamp duty and registration.

    On the other hand, a ready-to-move-in flat requires fewer steps. These include property document verification, down payment, sale agreement, home loan processing, sale deed, stamp duty and registration charge payment, followed by the possession of the flat.

  10. Buy Home Insurance Online

    Buying your dream house is one of the biggest and most significant steps in your life, and it is your foremost responsibility to get a home insurance policy. You can get comprehensive coverage for both the home structure and the content of your home.

    If you are wondering where to start the home insurance buying process, you can visit the official website of Policybazaar Insurance Brokers Private Limited. Here, you can compare home insurance online quotes offered by several home insurance companies and choose one as per your needs & budget. Sounds interesting! Isn't it?

In Summary

The decision to buy a home is not only important but a highly significant decision. Therefore, it is essential to consider the correct factors. It can not only be a source of satisfaction but also impact the value of your investments. This flat or apartment buying guide will assist you in making a wise purchase decision. Moreover, as a homeowner, you must get adequate home insurance policy to cover your prized possession against several unforeseen risk.

Written By: PolicyBazaar - Updated: 12 February 2024
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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  • Disclaimers+

    #Savings of 28% are based on the comparison between the highest and lowest premiums for a pucca building with sum insured of >₹ 1 crore at Delhi, for property age less than 5 years and policy term of 11 years.