Your Dream Home: A Step-by-Step Guide to Smart Buying

Beyond Financial Readiness: Essential Due Diligence for a Secure Real Estate Investment

For many, owning a home represents the culmination of a lifelong dream. Unlike other investments, real estate requires thorough research and careful consideration, as funds are not easily withdrawn once a decision is made. However, real estate is a long-term investment that can yield significant returns over time.

An Income-Generating Asset
Generally, real estate investments appreciate over time. The longer you hold onto your property, the greater the potential profit. Investing in real estate provides increased control over your assets, leading to higher returns on investment. This year shows promise for the real estate sector, with a notable uptick in pricing and appreciation. Homebuyers should seize this opportunity to purchase their homes while prices remain relatively stable. “We understand the importance of accumulating income-generating assets,” shares recent homeowner. “We took a joint loan and bought a house in the city. In the future, we plan to move to the suburbs, and this house will provide us with good rental income.”

Claim Tax Benefits
Tax deductions on property can offset the buyer’s income and reduce overall taxes. The government offers tax breaks for property depreciation, maintenance and repair expenses, insurance, legal fees, and loan interest. Real estate investors also benefit from lower tax rates on long-term investments. “My spouse and I took a joint loan to buy a house, as we can both avail of tax benefits” mentioned one buyer.

Make the Most of Your Investment
Location significantly impacts home value. Buyers should identify key micro-markets with strong potential for price appreciation and infrastructure development. Experts recommend thoroughly evaluating offers and ensuring they provide real value in terms of reduced costs. “When buying a home, buyers seek value for money while addressing their specific requirements,” states another buyer. “The implementation of the RERA Act provides homebuyers with greater security and transparency in the real estate sector.” It Is Important to Do Due Diligence While Buying a House.

Here Are a Few Things to Look Out For:

Purchasing from Owners

• The building should have necessary approvals and an occupancy certificate.
• Check if a society has been formed and conveyance in favor of the society is complete.
• Inquire about the seller’s title to the property.
• Check for unauthorized changes or extensions.
• Ensure all dues are paid and there are no outstanding liabilities.

Purchasing from Developers

• For ongoing projects, verify RERA registration.
• The developer’s title certificate should show a clear and marketable title.
• Ensure approved plans and a commencement certificate are available.
• Check if the developer has raised loans against the property and obtained lender NOC.
• Confirm the developer is collecting sale proceeds in a designated account.

Other factors influencing a buyer while making the purchase decision

• Price: Analyse the long-term financial impact of the purchase.
• Approvals and Licenses: Check for necessary paperwork, including encumbrance certificates, land use zones, title deeds, and environmental clearances.
• List of Banks Financing the Project: Ensure the project is financed by reputable banks.