A home is a dream. When it comes to realizing your dreams, each and every step forward should be taken carefully. Here we present you with 6 steps while investing in your dream home.
The first step in buying a flat in Chennai is to check for the right location or set of areas that you are interested in. When doing so, maintain a checklist of things you like/ dislike about the area/neighborhood. Evaluate the property with your required features like layout, size of the kitchen, 2 BHK or 3 BHK etc. If you need a loan, understand whether lenders are active in the neighborhood. Understand risky areas that might be under dispute or unauthorized for construction. If buying from a developer understand if the property is approved.
Step 2 is all about ensuring you and your investment is legally secure. read on, make the right decisions. A proper legal due diligence on the property helps to avoid any troubles in future. There are 2 types of properties you can buy. A pre-existing property or a property being newly constructed. In either case be sure the seller owns the property & has the right to sell the property. This ensures you don’t get into confusion about ownership rights.
- Pre-existing property: If buying a pre-existing property you need to transact with the seller, agree on terms & conditions, verify documents and finally get a loan approval if you need a loan.
- Under- Construction property: If buying an under construction property confirm that the property is legal and that sanction plans have been approved. Ask for approval documents, legal papers and get them verified with a trusted source. Take this step to ensure you don’t pay for something that is illegal.
Understand your payment plan. Depending on the builder and type of property, you need to know the payment plan for buying a flat in Chennai. If buying pre-exiting property, you may pay a sum today than cross payments across installments. If buying an under-constrcution property, you may have flexibility under payments.
Typical payment plans are of 3 types.
- Construction Linked: Pay based on the progress of construction. This is the safest method as you are paying per progress and not funding the developer when property is delayed.
- Time Linked: Pay according to a time-table, whether the construction is on time or not. Risk is that you are bound to pay installments, even if there is no progress.
- Up-front payment: Pay upfront but exposed to the risk of delays unless a delivery date is agreed upon and specific terms are agreed.
The 4th step of owning a home is all about applying for a home loan. a step that is crucial in ensuring you have the necessary funds to make your biggest dream come true. If you need a loan for your home, it’s advisable to start an application process. Do it along with the above steps. You’ll get insights on the size of your loan and the terms applicable. Don’t delay this process as your deal can fail without adequate funding. For passing a loan, lender needs your income and tax status documents along with property related documents.
You can also get a pre-approved loan if you haven’t selected the property yet. Do understand how the lender disburses the loan; in a lumpsum or as per the payment plan you sum up for.
The 5th step of investing in a picture perfect home is all about ensuring you have an allotment letter with all terms and conditions agreed upon. read the fine print, consult friends, ask a lawyer if you have a doubt. After applying for a booking at a property, you will be allotted a flat. You will receive an allotment letter from the builder. This letter includes details like flat number, area, price of your flat. This also includes payment details, extras levied, amenities & maintenance charges.
You can mention your preference such as a particular floor / view, you can request for it in initial application. Once an allotment letter is given, flexibility to change might be limited.
Owning a dream home is all about safe guarding your interest and making sure your investment is secure forever. read about the steps involved in drafting an agreement.If you are buying a pre-existing property property your seller & you will sign a sale agreement immediately. If investing in an under-construction property, the developer will sign a sale agreement shortly. The agreement signifies that the property is sold and also highlights details of your home. Check all details agreed, especially price, sq.ft., delivery date and penalty for delayed delivery and payment plans.
For any further clarification talk to us. We will be delighted to help you. Call us on:+91 44 400 00 300