Why is it important to evaluate a property and the builder before buying a house?
Purchasing a home is one of the biggest investments in one’s life. It is more crucial when your savings are at stake. Let us be practical, savings nowadays are not enough to get a home for yourself. And that is the reason why Home Loans are needed. A decision to buy a house can turn hectic and painstaking if proper research is not carried out. Houses do not come cheap and when you decide to buy a home, you will want to end up in the right place with the right surrounding.
If you are applying for a Home Loan then it is essential that prior to that you evaluate the property that you are looking to buy. In fact, not just the property, but the builder as well. Buying a home is not an easy task amidst all the illegal construction and other unfair practices going on. Thus, there are two things you must take care of before you buy a house.
First is that you thoroughly evaluate the property and second are that you run a background check on the builder who has worked on the property. It will help you analyze how safe is your investment. Let us understand how a property can be thoroughly evaluated:
- Location and accessibility: Do not just buy it because it is cheap. Find a proper location, one that suits your needs. See that all the convenience is there, you do not want to end up in an area where even traveling is a tedious task. Public transport, hospitals, school and other social institutions should be checked upon before you approach the Non-Banking Financial Companies (NBFCs) for a Home Loan.
- Walk around the locality: It is advisable to take a walk around the property before you decide to buy one. It will help you understand the people who live there, the amenities in that area and drawbacks of the same. Do not just sit back and relax thinking your agent would do it all for you, it is essential that you do some basic research with regards to these matters.
- Basic utilities: Most of the metropolitan cities in India have the problem of water shortage. It is essential to find a house where water shortage is not much. Apart from this, you might want to make sure that the electricity and other essential facilities are on point.
- Additional Facilities: It is essential that you look for proper facilities to help you relax. Some recreational facilities such as gym, swimming pools, and parks can make your life better. More so if it is nearby or inside the plot.
- Home Loan benefits: There are various Non-Banking Financial Companies (NBFCs) which are offering the services of Home Loans. You must consider these first and compare it with other lenders and secure the best service for you.
- Property status: It is essential that you check whether the property is move-in or under-construction. The major difference between the two is that under-construction property is deprived of tax benefits. A construction certificate is essential in order to avail tax benefits, which you get once a construction is completed. Moreover, you should not fall for under-construction property which is being offered at a low rate. Study well regarding each and every aspect.
Apart from evaluating the property, it is essential that you evaluate the builder since he is the one who is responsible for the construction of the property. It is essential that you check the builder and get a proper information about the same. Here are few points that you must take care of:
- Track record
- Credibility of the builder
- Where has he funded the construction from?
- Free from legal hassles
Thus, these are the two things that you must take care of before you approach any financial institution for a Home Loan.