Last Modified: 27 May 2020  |  Home Buying Guide

Buying a property in India can be a strenuous process that may require a lot of your time and effort. Well, that is why we have narrowed a step-by-step guide that could​ make your home-buying a very easy task:

Step 1: Planning a budget 

The first step is to identify your budget. Do remember that this must be in accordance with your expenses, savings, and all your other family’s needs. This will help you search for a property that caters to the budget available for your dream home.  

Step 2: Selling/renting of current property (Exit market strategy) 

Most people tend to reap benefits from their current residential property by renting or selling it. This is a good strategy, but it is important to calculate the ROI in both these cases. Making the right choice will involve comparing the rental return and the capital appreciation to what can be earned by investing in another property. So, choose wisely!  

Step 3: Choosing the right builder  

Choosing the right builder that upholds a great reputation, offering world-class quality, great amenities at affordable prices is very important. Like, Shriram Properties, one of the leading real estate player of South India, who has been at the forefront of creating homes and relationships that are highly valued.  

Step 4: Choosing the right location

The location has a significant impact on your everyday life, so take a careful look at the location and locality before buying the property. Also, the location will have a large impact on the resale value of the home.    

Step 5: Checking for loan eligibility

Your home loan eligibility will depend upon the repayment capacity, income, existing loans or debts and age of the loan applicant. The loan amount that can be sanctioned varies with the banks and the eligibility criteria may vary according to the bank or RBI regulations.    

Step 6: ​Tax implications   

Buying a home comes with tax implications. The TDS is levied at one percent, if the value of the property exceeds Rs 50 lakh, since September 1, 2019. In addition, you have to bear the cost of-    

  • Registration charge: The registration fee adds up to one percent of the ‘agreement value’ but it can vary depending on the state.    
  • Stamp duty: In typical cases, this amounts to about five percent of the market value of a property.  

Step 7: Legal clearance 

A legal clearance while purchasing property is an essential process that one cannot overlook. So, here are the documents that you must check for:  

  • Agreement to sell  
  • Absolute sale deed and title deed
  • Title search and report  
  • Khata certificate  
  • Receipt of property tax  
  • Encumbrance certificate  

Step 8: Property insurance: 

Property insurance ensures your financial future! Don’t fret because the cost is relatively low and provides coverage in case of problems with the property title, certain damages, or legal issues. Choosing the right house insurance protects the property and makes the process of buying easy.

We hope that this article has addressed significant questions, and provided you with meaningful insights into the process of home buying.  

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