Being able to own a home of their own is often the biggest motivation for people to work hard and save money. In India, a home is more than just a piece of property, it is also a source of pride, security and stability. More Indians today are looking to invest in residential property, instead of living in rented houses as tenants. This is further bolstered by the number of first time home buyer benefits being offered today.

The Economic Survey 2017-18 revealed that only 28% of urban Indians live in rented houses as compared to 1961 when as many as 54% lived in rented houses.

The current Indian real estate market is booming, making it the perfect investment opportunity for almost guaranteed returns. Rapid improvements in infrastructural developments in the suburbs and increased competitiveness among property developers have given home buyers immense choice when it comes to finding a home to invest in.

These market conditions have also been supported by a slew of economic policies and first time home buyer benefits introduced by the government to make home ownership accessible to all. The RERA act was a landmark move to bring about transparency in the real estate sector and protect a buyer’s interests. The complex and highly variable tax structure in real estate was also eliminated with the introduction of GST, which standardised tax rates across the country. There are also certain first time home buyer tax benefits introduced which individuals can now take advantage of. But, arguably, the most ambitious move to encourage more people to buy homes was the launch of the ‘Housing for All’ scheme which offered heavily subsidised interest rates on home loans. This was one of the best first time home buyer benefits in India to encourage more people to invest.

These factors have made this the perfect time to invest in a home of your own. However, for first time home buyers in India, the entire process can seem confusing and intimidating. This in-depth guide to buying a house will help you understand every step involved in the homebuying process and ensure that it goes smoothly.

CHAPTER 1

Things First-Time Home Buyers Should Know Before Investing

Things for First Time Home Buyers

You might have decided to invest in real estate, but how do you find the right home to purchase? A glossy brochure can seem very attractive, but there are deeper aspects to look into before deciding whether a property will be a worthwhile investment.

Knowing exactly what questions to ask before zeroing in on a property can be the difference between a good investment and a bad investment.

A smart real estate purchase will deliver a high ROI margin while a bad real estate investment depreciates over time. For most ongoing projects, the factors that can influence price appreciation might not be immediately evident. This is why, understanding what to look for in a project can help a first home buyer make the right decision.

If you have decided to take the leap into real estate investment, here are a few first home buyer tips to follow.

1. ASSESS YOUR NEEDS

If there’s one thing home buyers have no shortage of, it’s the number of choices available in today’s real estate market. The challenge then becomes not to find investment options, but to narrow them down. The two questions to ask yourself when looking for a home are:

 

2. SET YOUR BUDGET

Many financial institutions offer first time home buyer benefits in the form of lower interest rates. But a home loan can only finance 80% of the total property value, so the remaining 20% needs to come from your personal finances. Before you set out on a house hunt, make a complete evaluation of your personal finances and decide how much you can realistically afford to spend on a home.

3. EVALUATE YOUR OPTIONS

With the huge number of projects coming up, the variety of residences available for first time home buyers in India have also increased. Typically, you can choose from three main types of residential properties:

Apartments

Villas

Villaments

Based on your budget and needs, you can decide which option is the best fit for you. Here’s how you can buy a home without breaking your budget.

4. CHOOSE YOUR LOCATION

The location of your new home is crucial both on a personal level and from an investment perspective.

A few questions to ask yourself before deciding on a location are:

  • Does this locality attract investments from large corporations which can increase property value over time?
  • How far is it from my workplace?
  • Is it close to essential facilities like hospitals, schools and colleges?
  • Does it have conveniences like supermarkets, banks and ATMs nearby?
  • Are there any recreational facilities like malls, multiplexes and restaurants nearby?

5. CHECK YOUR CREDIT SCORE

If you are planning to apply for a home loan, as most first time home buyers do, your credit score, or CIBIL score, can be a make or break factor. The CIBIL score is based on your financial credit history and can be analysed through the following categories:

Banks might not approve your home loan application if it is low, so if you do have a bad CIBIL score, it’s a good idea to take steps to increase it before applying.

6. CHECK CREDIBILITY OF BUILDERS

Making a real estate investment is not the best time to test your luck with a gamble. While unknown builders might attract you with lower prices, you can never be sure of their quality of construction, if they have the required approvals or if they will complete the project on time This is why, you should always choose a reputed builder to ensure that the process goes smoothly.

For more information on how to prepare for your house hunt, read 7 Things a First-Time Home Buyer Should Know Before Investing.

CHAPTER 2

Best Investment Destinations to Buy a Home

guide to buying a house

One of the biggest advantages of living in your own house is that you have the liberty to make any change you’d like. If you find your walls drab, you can repaint them. If you want to drill holes in your wall to hang a few picture frames, no one can stop you.

But if there’s one thing you can’t change, it’s the location of your home. If you want to avoid a bad investment (and all of us do), the key is to identify a location that will guarantee the highest returns.

Choosing a location for purchasing your first home takes a little bit of research and a lot of foresight. You shouldn’t focus too much on how the neighbourhood is at present, but how it will grow in the future. Luckily, India is at a very exciting point of its development, where cities are expanding and suburbs are becoming hot investment destinations.

When it comes to selecting the perfect location for your home, here is a new home buyer’s guide to help you decide.

1. Bangalore

Bangalore is India’s biggest technological hub, attracting some of the biggest corporations in the world who are opening their offices here. As most of these organisations are opening up in the former outskirts of the city, it has led to a huge opportunity for real estate growth in these parts.

Bangalore offers the ideal trifecta every homebuyer is looking for: low prices, high appreciation and excellent locations.

The plethora of residential apartments in Bangalore that are being constructed offer home buyers an unmatched lifestyle. You can read more on What Makes Bangalore an Investor’s Paradise to help make your investment decision easier.
Within Bangalore, a number of localities have emerged as some of the best places to buy a home.

Sarjapur

The turning point in Sarjapur’s history came when Wipro opened up its campus here. This acted as a catalyst for Sarjapur’s development, encouraging other large companies to also invest in this area. With the infrastructural improvements and economic growth leading to an influx of people moving to Sarjapur, property values here have skyrocketed. There have been a number of beautiful residential projects in Sarjapur launched which offer plenty of choice to customers. Another factor driving Sarjapur’s growth is its close proximity to major commercial hubs like Koramangala.

Take a look at Sarjapur’s Growth Through the Ages to understand how this locality transformed from a textile manufacturing centre to a technological hub.

Electronic City

Electronic City was one of the first suburbs to be developed and transformed into a hub for technological investments. Today, this locality is home to some of the biggest MNCs in the world including Wipro, Infosys, Hewlett Packard, Siemens and more. Buying property in Electronic City will ensure investors enjoy a home close to their place of work and steady returns on their investment.

Hennur

Hennur is a major developmental zone in North Bangalore which gained prominence after the inauguration of the Kempegowda International Airport nearby. This led to several major tech companies opening up in Hennur like Larsen and Toubro, Nvidia, Target Corporation and more. With the growth in opportunities, more people were looking to buy residential properties in Hennur, which in turn, pushed up property values in the area. Its strategic location on the Outer Ring Road also makes it very accessible to other parts of the city.

Read more about Why Hennur Road is the Place to Be if you are keen to invest here.

Whitefield

Whitefield today has become almost synonymous with the technological dominance of Bangalore. This former suburb is now home to huge MNCs like IBM, SAP Laboratories, Mphasis and more. With hundreds of thousands of people moving here for jobs, residential apartments in Whitefield are some of the most luxurious in the city. This upward growth will not be stopping anytime soon as the Namma Metro project will make Whitefield even more accessible to other parts of the city.

Hebbal

Hebbal is widely considered the next Whitefield of Bangalore as it has witnessed a massive flow of investments from huge corporations, which have accelerated the development of this area. With the setting up of large tech centres like Manyata Tech Park, Hebbal has seen a growing demand for excellent-quality accommodation. If you plan on living in your new home, investing in Hebbal can mean that you will live very close to work. Even if you are looking for a home as an investment, Hebbal is still the best option as it will give you a steady stream of tenants and also high price appreciation.

2. Chennai

Chennai has one of the best property markets in the country as the number of unsold inventory here is very low as compared to other metro cities. The Old Mahabalipuram Road (OMR) is one of the most important investment zones in Chennai since it is home to Chennai’s biggest technological corridors. Infrastructural developments also mean that the residents of OMR can enjoy the same comforts here that they would in other parts of the city. Real estate investments in OMR are almost foolproof as the rates of property appreciation don’t look like they’re going to come down anytime soon. Apartments in Chennai offer residents convenient amenities and luxurious living spaces.

Read why Suburban Chennai Is the New Housing Destination for homebuyers looking to make the best returns on their investment.

3. Vizag

Vizag is the largest city in Andhra Pradesh and has been gaining prominence for its massive growth potential. Suburban areas like Parawada and Achutapuram have become favourites for IT companies looking to open up their offices in this city. Vizag also offers unmatched quality of life for its residents and is ranked as one of the cleanest cities in India. These factors combine to make this city one of the best places in India to make a good real estate investment. The new apartments in Vizag which are coming up also offer unmatched construction quality to its residents.

Find out why Vizag Is One of The Top Real Estate Investment Hotspots Today.

4. Kolkata

Kolkata is emerging as one of the most promising cities in India to invest in real estate. The real estate market here has grown by almost 30% from 2014-17. The city is also expanding rapidly, with suburban areas like Uttarpara becoming favoured destinations for both residential and commercial real estate investments. Since the market is still growing, the property prices are still comparatively low. But with the current price trends showing steady growth, these rates are certain to appreciate in the future.

CHAPTER 3

Types of Residential Property

location for purchasing your first home

When it comes to choosing a home to invest in, homebuyers today enjoy a greater variety of options than they ever did before. When you are trying to zero in on the perfect home for your family, it’s important that you don’t just focus on your present needs, but those which might arise in the future.

Since your home lasts for a lifetime, it needs to be able to grow along with your family.

If you have a family of three at present, do you think this number might grow in the future? Will your parents or in-laws move into your home later on? Asking yourself these questions will help you find the right home that ticks all your boxes.
Homebuyers exploring their options are usually faced with four options, each with their own plus points. Here’s a home buyer’s guide to find the perfect apartment to fit your requirements and budget.

1. Apartments

Apartments are the most popular and widely-available types of real estate available. There are a number of reasons why apartments are so attractive to homebuyers:

Price Variations:

From very affordable basic apartments to ultra-luxury homes, apartments cater to almost every budget.

Security:

Apartment buildings are usually manned by 24×7 security guards, CCTV cameras in common areas and other advanced security features.

Convenience:

Apartments these days have a permanent maintenance department for the regular upkeep of the building and can also provide an electrician, plumber or any other service you might need.

Community Living:

Most associations regularly organise fun events, so you can mingle with your new neighbours and become a part of thriving community. If you have young children, apartments will help them find playmates and ensure that they will never feel lonely or bored.

Shared Resources:

Residents in an apartment usually have access to common amenities like a swimming pool, clubhouse and gym. Since these facilities are shared among all, their upkeep is also taken care of by the building maintenance department.

2. Convertible Homes

A convertible home is a relatively new concept which is becoming increasingly popular among homebuyers. These homes are futuristically designed with an extra room that you can adapt to your specific needs. The possibilities for how you can use this convertible room are endless.

  • If you have a growing family, it can be designed as a nursery for your baby.
  • It can be used as a guest bedroom when friends or relatives plan an impromptu visit to your home.
  • You can use it as your home office or study, to store your books and files.
  • If you have always wanted a mini library in your home for your books, you can finally do it with a convertible home.
  • If you are big on fitness, a convertible room will give you the perfect space to keep all your workout equipment.

Here’s Everything You Need to Know About Convertible Homes to help you decide whether this is the best option for you.

3. Villas

If space and privacy are your biggest priorities, villas are the perfect option for you. These homes usually come with a private garden and terrace so you have ample space to enjoy. While villas were always considered to be very expensive in the past, today they have become comparatively more affordable as the market becomes more competitive.
Many homebuyers who want to invest in a villa are hesitant because they are concerned about security. However, gated communities can solve this problem as the individual villas are located within a common neighbourhood that has round-the-clock security.

4. Villaments

Villaments are the latest trend in the real estate business and the concept is quickly catching on. These homes are uniquely designed to combine the best aspects of villas and apartments. If you want the affordability, security and convenience of an apartment but also the space and privacy of a villa, villaments can be the solution to your dilemma.

Since this is a relatively new concept, here’s Everything You Must Know About Villament Accommodation. This will help you learn more and will act as a guide to buying a house in India that fits your needs. You can also find out how to own a home at 7000!

CHAPTER 4

Things to Check Before Booking a Home

first time home buyer checklist
After countless site visits and weeks (or even months) of research, you might have finally found the perfect home that ticks every box on your first time home buyer checklist. But before you can grab a pen and eagerly sign the contract, you still need to dot the i’s and cross the t’s.
Purchasing your first home is a huge commitment, so you need to make sure that you have checked out every nitty-gritty aspect before finalising it. Inspecting a home fully before you book it can help you prevent any unforeseen issues from cropping up in the future
Your guide to buying a house includes three main things to cross off your first time home buyer checklist before you decide to invest in a home:

Final Price of the Property

Often times, the price advertised is not the same price you end up paying for a home. The cost of an apartment as specified by the builder doesn’t always include additional charges such as service tax, clubhouse membership fees, maintenance charges, parking fees, etc. Some builders might even charge you extra if you want to buy a house on a higher floor or in a tower with a special view. Make sure you find out all the extra costs involved before you commit yourself to investing your hard-earned money in it.

Buyer-Builder Agreement

At the time of booking a house, you will usually be required to pay a certain amount as a token fee to finalise your agreement. You will then have to sign a three-way contract between yourself, the builder and the bank you are receiving a home loan from to pay the remaining amount of the property value. This contract is called the buyer-builder agreement. It is very important that you carefully read the fine print of the contract before you unwittingly sign an agreement that might not be beneficial to you.
Many buyer-builder agreements have terms and conditions which specify that the builder can raise prices of the house before handing over if the market fluctuates. Once you sign this, there is no legal avenue for you to challenge the builder against additional payments. If you have a lawyer, ask them to comb through it completely before purchasing your first home.

Approvals and Licences

Ensuring that the builder has all the required certificates and approvals in place can prevent you from getting involved in any legal hassles later on. Some of the approvals you should check for before purchasing your first home include:

  • Title Deeds
  • NOC by relevant local bodies
  • Environmental clearances (if applicable)
  • Check Encumbrance Certificate
  • RERA certificate
CHAPTER 5

Documents Required to Buy a House

BLOG-BANNER-Chpt5

Everyone wants their home loan application and property registration appointment to go smoothly the first time. However, if you don’t have the correct documents, you might have to reapply and wait longer.

The documents you will need to present can be grouped into two broad categories: those which pertain to you and those that concern the property you are investing in.

Personal documents act as proof of your details and financial situation. These documents are usually required at the time of applying for a home loan. The documents related to the property include verification of its legal status, the credibility of the project and certificates from relevant authorities.
Here is a guide to the complete first-time home buyer checklist of documents you will need to present throughout the process.

Documents Required from the Builder:

 

1. Sales Deed: The sales deed is proof of the sale of the property to the buyer.

2. Building Approval Plan: This is issued by the relevant municipal body if the building approval complies with the existing requirements.

3. Commencement Certificate: For a property still under construction, the local body will issue a commencement certificate if it meets their criteria.

4. Khata Certificate and Extract: These documents are required for registration of property and provide details of a property as assessed by local authorities.

5. Encumbrance Certificate: An Encumbrance Certificate documents all the transactions carried out against the property.

6. Recent Tax Receipts: These are receipts of the required taxes paid by the builder to the
government or local body.

7. Completion Certificate: For a completed property, the municipal bodies will issue this certificate if it meets their criteria.

8. Occupancy Certificate: This is also issued by municipal authorities after inspecting the construction quality of the project and checking if it meets their safety standards.

9. NOC: A No Objection Certificate is issued by all the local bodies concerned if they determine that a property does not violate any requirements.

10. Allotment Letter: This letter is issued by the builder and provides details about the project and acknowledges the amount already paid by the buyer.

 

First Time Home Buyer Documents Needed:

 

  • Photo Identity Proof or Age/Residence: You can use your Aadhaar, PAN card, passport or driver’s license as proof of these details.
  • Employer Identity Card: In case of salaried individuals if you are planning on applying for a home loan.
  • Bank Account Statement: Account statement for the last 6 months from all accounts held.
  • Previous Loan Statement: If you have taken a loan in the past, then you will need to provide an account statement to show the status of repayments.
  • Salary Slip: Payslip for the last 3 months in the case of salaried individuals
  • Form 16 Copies: IT Returns for the last two years as received by the IT department
  • Address Proof Business: Proof of location of business for self-employed individuals.
  • Balance Sheet: Profit/Loss account for the last 3 years to indicate repayment capacity if you are planning on taking a home loan.
  • TDS: TDS certificate or form 16 needs to be submitted for self-employed individuals.
CHAPTER 6

The Complete Home Loan Application Process

how to save money to buy a house

In the past, buying property was considered a choice available to only a few who were privileged enough to be able to afford it. Now, however, it has become more accessible to most income groups. One of the reasons for this has been banks relaxing their first time home buyer interest rate and application requirements, especially for first time home buyers. Buying a home has also become more affordable as the average down payment on a house for first time home buyer has also come down. Home loans have given people the capacity to buy their dream home by allowing them to pay the full property value in monthly instalments. Many banks have also introduced attractive first time home buyer benefits to encourage more people to invest. However, it’s important to remember that a home loan can’t cover the full cost of a property.

A home loan can cover only 80% of the total property value; the remaining 20% needs to come from your personal funds.

For those not familiar with it, applying for a home loan and understanding the amount payable as first time home buyer down payment can seem tedious. However, once you understand the process, you can prepare for it and learn how to purchase your first home with zero hassles.
Here’s a new home buyer’s guide to all the steps involved in the loan application process.

1. Fill Out an Application

Once you decide on a bank to take out a loan with, you can download the home loan application form from their website or collect it in person. This form usually includes your personal and financial details. You will also need to attach specified documents as proof of the information you have provided. To understand the exact procedure involved, the websites of these institutions are an important source of first time home buyer information.

2. Evaluation of Your Credentials

Banks are always undertaking a risk when they give out loans because there is a chance that you might not pay them back. This is why they conduct a thorough background check to verify your details and assess your repayment capacity. Most times, the bank will send a representative to your home or office and evaluate your documents.

3. Assessment of Credit History

Banks use a number of parameters to judge the repayment capacity of an individual. Younger applicants usually get preference as they have a greater number of working years left to repay the loan. It also helps if you work with a reputable and well-known organisation. For self-employed individuals, a financial statement of your business will tell banks how stable your income is.
One of the most important factors taken into consideration by banks is your CIBIL score. If your CIBIL score is below 750, you should take measures to increase it before applying for a loan.

4. Inspection of Property

Banks will send their representative to visit the property and check whether it is a good investment. Some of the details they look out for include:

  • Whether the stage of completion matches the details provided by you
  • The pace at which construction is taking place
  • Whether the layout and facilities provided comply with standards specified by development authorities
  • Value of the property in comparison with price trends of surrounding properties
  • Construction quality

5. Signing of the Agreement

After the bank has verified your personal and property details, they will sanction your loan. The draft of the agreement will be approved by a lawyer and then has to be signed by you. You will also need to hand over the original property documents to the bank who will keep it with them as security until you have repaid the entire loan amount. When you receive the cheque for the entire loan amount, it will usually be made out to the builder and not to you personally.

To learn more about this process, read our Quick Handbook: The Complete Home Loan Process in India.

CHAPTER 7

How to Save Taxes on a Real Estate Investment

first time home buyer tax benefits
Every person knows that investing in a home requires you to spend money. However, not many know that you can also save money through real estate. In what should come as a sigh of relief for those making their first real estate purchase, the government has introduced special first-time home buyer benefits.
As most of the first time home buyer tax benefits provided are applicable on home loans, utilising one to help finance your property investment can have more advantages than you realise. There are also separate tax policies for under-construction properties and completed ones, so it can be helpful to understand them before choosing a property to invest in.
Here’s a new home buyer’s guide to saving money on taxes at various stages of the home-buying process.

How to Save Tax on Your Housing Loan

There are a number of ways to claim first-time home buyer benefits for tax deductions against the interest payable on your home loan:

  • Under Section 80C of the Income Tax Act, you can claim up to Rs. 1.5 lakhs as tax deductions against the interest payable on your home loan.
  • If you decide to give your house for rent, the entire interest amount on the home loan can be deducted from your income tax.
  • For self-occupied homes, you can claim up to Rs. 2 lakhs under section 24 (b) of the Income Tax Act.
  • If there is a delay in the construction, you can claim deductions against the principal amount. Once you take possession, you can claim the interest paid in the period prior to handover.

Pro-Tip: Taking out a joint loan will help you enjoy tax deductions on both the principal amount as well as the interest.

 

How to Save Tax When You Take Possession of Your Home

If you have only one house under your name and you aren’t living in it, then you won’t have to pay any additional taxes. For people with two or more houses where one is lying vacant, they will need to calculate the ‘notional rent value’ of the house and pay taxes on it. The notional rent is calculated taking into account the current price trends of the location. You can also claim tax deductions against this amount.

Pro-Tip: When taking possession of your home, you can claim 30% of the total value as tax deductions under maintenance and repair charges.

How to Save Tax When You Are Selling Your Property

There are two main types of tax that are applicable when you are selling your property: Short-Term Capital Gains Tax (STCG) and Long-Term Capital Gains Tax (LTCG).

STCG: If you decide to sell your property within three years of possession, you will be taxed under the standard I-T tax policies.

LTCG: If you sell your property after three years, you will have to pay 20% of the total value of your property as LTCG after adjusting it for inflation. However, if you invest the entire profit gained into buying another house within two years of the sale, you can avoid paying this tax. If construction of the property is still not completed after three years and you want to sell it, you won’t be charged LTCG.

Pro-Tip: You can deduct the amount payable as STCG and LTCG by including the amount paid on home renovations as well as processing fees (stamp duty, legal fees, brokerage charger, etc).

Read Best Tax-Saving Options to Explore in the Home-Buying Process to find out more ingenious ways to reduce your tax burden.

CHAPTER 8

A Step-by- Step Guide on How to Register Your Property

first time home buyer tax benefits india

After what might have seemed like a lifetime, you have finally navigated the maze that is property investment and reached the reward: the keys to your own home. But before you plan a much-needed celebration to mark this milestone in your life, there is one last process you need to complete before owning your first home.

Registering your property is the single-most important step of the real estate investment process.

Even if you have started paying the home loan instalments and received the handover of your home, you are still not considered the legal owner of the property. According to section 17 of the Property Registration Act of 1908, a person will not be able to claim any legal right over a property unless it has been duly registered in their name. Not doing so will leave you vulnerable to property disputes in the future as it is not legally yours.
To ensure that you have complete ownership of your new home, here’s a few steps to help first time home buyers register their property.

1. Calculate Amount Payable as Stamp Duty

Stamp duty is a form of tax that is levied by the state government and is either calculated as the current circle rate or as a percentage of the total property value of the house, whichever of the two is higher. Since the stamp duty can increase as the property value appreciates, it’s important that you register your property as soon as possible.

2. Prepare the Sales Deed

A sales deed needs to be typed on stamp paper which can be purchased through a vendor or on an e-stamp paper which can be downloaded online. As it is a legal document, you will need to get a good lawyer to draft it on your behalf. Once the deed has been drafted and signed, the submission of documents to the sub-registrar should not exceed four months from this date of execution.

3. Collect Required Documents

When you meet your sub-registrar to register your property, they will first have to check the following documents:

  • Government-approved ID and address proof
  • No Objection Certificate (NOC) for the property
  • Passport size photographs of the owner of the property and of two witnesses
  • Latest receipt for tax payment
  • Latest account statement from bank if still paying home loan on the property
  • Building plan that has been sanctioned by the concerned authorities
  • Title deeds of land owner
  • Cash or demand draft to pay stamp duty

4. Meet the Sub-Registrar of Your Locality

After you make an appointment with your local sub-registrar, you can meet them on the scheduled date to submit your documents. After the sub-registrar checks the documents and stamp duty paid for validity, you will be asked to pay the registration fees. They will then give you the registered documents but will keep the copies to maintain their records.

With these documents, you can now celebrate owning your first home and start living like a superstar!

You can read our Guide to Registering Your Property to understand how a first time home buyer benefits from registering their new house.

FAQ's

1. Do you need a downpayment for first time home buyers?

First time home buyers do need to make a down payment when applying for a home loan. This is usually 20% of the total property value. Making sure you have the required funds before applying for a loan is an important step in the home buyers guide.

2. How do I buy my first house?

The most convenient step for a first time home buyer to buy a house in India is with the help of a home loan. This provides several benefits, especially to people with limited funds, such as tax deductions on interest, deduction of GST and deduction on subsidy slabs.

3. Who qualifies for first time homebuyer?

Anyone who doesn’t have a property/home attached to their name would qualify as a first time home buyer. Our property buying guide in India can help you buy your first home.

4. What subsidies are available for first time home buyers?

Government of India has come up with with subsidies to help benefit first time buyers and also to make the procedure a lot easier. The Pradhan Mantri Awas Yojana Scheme is an initiative taken by the Indian government to make home ownership accessible to all income groups.Under this particular scheme, the lower and middle income groups are provided with special interest subsidies depending upon which income bracket they fall under. The Pradhan Mantri Awas Yojana Scheme comes under the Credit Linked Subsidy Scheme where individuals can enjoy subsidies on their housing loan interest that is proportional to their financial income.

5. What are the requirements for a first time home buyer loan?

Every bank in India has a minimum CIBIL score which acts as a cut-off. Generally a score of 750 and above is considered as a good score, 350-750 is considered is considered as an average score and below the score of 350 would be considered poor. One of the most important tips for buying property is to increase your CIBIL score before applying for a loan.

6. Is there any benefits for first time home buyers?

Many banks offer special loan programmes which can let first time home buyers get a home very easily. Additionally, the Government of India has introduced special incentives for first time home buyers under the Pradhan Mantri Awas Yojana (PMAY) and the Credit Linked Subsidy Scheme (CLSS).

7. What is the best advice you can give to a first time home buyer?

Here are few home buyers tips which could be of great help- 1.Having a good credit score (a score between 700 and 750 is considered excellent) is the most important and one of the major factors taken into account by banks when they issue loans to first time buyers. 2. Most of the banks offer home loans to first time buyers with the requirement of a down payment. 3. Doing a thorough background check to check which home loan is most suitable. Keep important factors like eligibility criteria, interest rates, turnaround times and list of the most trusted lenders in mind. 4.It is always important to choose a reputed bulider to avoid complications while buying the house. Reading a home buyers guide would help ease the process for a first time buyer while buying a property. These property buying tips would be of great help to a first time buyer.

8. What are the most common mistakes a first-time homebuyer makes?

1.A first time home buyer might choose a home beyond their budget and potentially run into debt. 2. It is possible that a first time buyer might be unaware of their credit score, making it difficult to get a home loan. 3. They might make hasty and emotional decisons as they might get attached to the first site they see. 4. Making decisons on their own without consulting family or friends.Making an informed decison is one of the the most important property buying tips. Reading a home buyers guide checklist would help a first time buyer to avoid such mistakes.

9. What are good tips for buying a First house?

Here are few property buying tips for a first time buyer- 1. Always choose a reputed builder to get the best infrastructure and also to ensure the highest returns on investment.This is one of the most important home buyers tips. 2. Pick a house which is close to basic/important amenities like hospitals, schools, grocery stores etc. 3. Choose a house which is located in a safe area. 4. It should be a location which has easy connectivity. 5.Try choosing a home which offers green spaces as it can have many advantages.These home buying tips and tricks could successfully help you invest in a new property.

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Thoughts on “The Complete Guide for FIRST-TIME Home Buyers in India”

  1. DavidJoseph
    on August 16, 2018

    I want to buy a house in India, want to know the downpayment is applicable for the first time home buyers

  2. admin
    on September 7, 2018

    Hi David. Each bank typically has their own guidelines for downpayments. In general, you have to pay 20% of the total property value as a downpayment.

    You can read our blog on The Complete Home Loan Application Process in India for further details.

  3. Kesavannair
    on August 16, 2018

    Well written post for those who buy a home in india, gives a complete breakdown about what are the things required.

  4. admin
    on September 7, 2018

    Hi Kesavan, we are glad you found it useful 🙂

  5. Ananya
    on August 22, 2018

    In the last few months, I spent a considerable amount of my time reading blogs on real estate especially topics on buying a property as I was looking for an apartment purchase. I was doing all these to ensure I hit it right & not regret later for wrong choices. A few months ago, I purchased a 2BHK apartment & I am super happy with my purchase & a part of my happiness is because of your enlightening article too.

  6. admin
    on September 7, 2018

    Hi Ananya, congratulations on becoming a homeowner! Glad we were able to simplify your journey.

  7. sanjay
    on August 24, 2018

    I am a first-time buyer looking to buy a home what are the plans which have to be followed to own a home.

  8. admin
    on September 7, 2018

    Hi Sanjay, buying a home can be a very simple process if you follow the guidelines mentioned above 🙂

  9. mohan
    on August 24, 2018

    I want to buy the first house in India, what are the financial schemes which are available.

  10. admin
    on September 7, 2018

    Hi Mohan,

    The government has initiated several schemes like PMAY and CLSS to benefit a first-time home buyer. Additionally, banks often have special offers for first-time home buyers. You read our blog on Pradhan Mantri Awas Yojana to learn more.

  11. Rishita
    on September 20, 2018

    Well written post for those who buy a home in india.

  12. admin
    on September 20, 2018

    Hi Rishita,
    we are glad you found it useful.

  13. Henry
    on September 21, 2018

    Buying a house in India is complicated or simple thing and what are the most advantages for the first time buyers.

  14. Richa
    on September 28, 2018

    It is a very informative post, useful for all. Thanks

  15. admin
    on October 5, 2018

    Hi Richa, we’re glad you found it useful. Best of luck on your home buying journey!

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