For most of us, buying a home is a once in a life time achievement. Obviously one needs to plan it out properly to ensure that everything goes smooth since stakes are high. Plethora of things needs to be checked and re-checked. Even a small slip can cost dearly. It is worth spending sometime and settle on certain fundamental issues before you take actual steps for buying a home.

A) Have you assessed your requirement?

A) Your Requirement:
Requirement can be either immediate or future. Since home buying is not a recurrent exercise, we need to plan not just for immediate future but for a little longer. Requirement nevertheless has to go hand in hand with your budget.

Whether you need a one bedroom unit or a little more or an independent bunglow? All this will depend both on your requirement and budget. After you determine your requirements, please try to get the following questions answered.

1.The area mentioned by the builders is generally on super-built basis, which includes the proportionate component of common area. You have to be sure about carpet area, which will give you, exact dimensions of internal area of the premises.

2.Specifications Offered:

i. Kind of Flooring

ii. Tiles in the Bathroom and W.C., kitchen, what the height up to which the      tiles are provided.

iii. Kitchen platform

iv. Quality of wood work for doors, windows

v. Bathroom fittings

vi. Electrical fittings

vii. Whether wiring is concealed or otherwise?

viii. Is Elevator provided?

ix. Does it have stand by generator support?


All these specifications should form part of the Agreement

3.Does your unit receive enough natural light? Does your unit has enough ventilation? Is parking provided? Is it covered or open? What about water and power supply? How and when you will get telephone connection? Does the complex have intercom facility? Does the complex have adequate security arrangements?

B) What is the permissible time frame?

B) Time Frame:
Unless you require the home immediately, it makes sense to opt for the property which is under construction. It facilitates following advantages:

i)  Your monetary outflow is staggered in a phased manner.
ii) You can have additions/alterations made at comparatively lesser price.

While opting for property under construction, the following aspects are to be borne in mind.
i)  The project might get delayed. In such case, are you in a position to wait.      You need to take into account the cost for alternative arrangements.
ii)  In case of delay in completion, you will be saddled with pre-EMI interest      which eventually jacks up your project cost.
iii)  Does your agreement provide for any penal provisions in case of delayed       possession by the builder/developer.
iv)  Are there any escalation clauses? Do they sound reasonable?

C) Which location would you prefer?

1. Whether it is well connected by roads?
2. How far is your place of work?
3. Is public transport easily available?
4. Does it have school, college, market, hospital, gardens, etc. in the vicinity? 5. Are there enough recreational facilities?

D) Who is providing the home to you?

Builder
i)   What is the past track record of the builder
ii)  What is the level of his expertise

Title
i)  Whether title is clear and marketable
ii) Has the project been approved by any financial Institution? Though, it per     se does not shift the responsibility to the Institution concerned, your     comfort level will increase.

E) Cost and Means of Financing COST

Price normally depends upon location and specifications. It is necessary to conduct a comparative study to ascertain the best price. You also need to analyze the components of the total price. Some of the components are not financed by the Housing Finance Companies. In such case, self Equity is required to be planned to finance such components of cost. Normally basic cost, stamp duty and registration charges, one time maintenance are considered by Housing Finance Companies for financing.

MEANS OF FINANCING
ü Own funds
ü Proceeds of Existing property/ assets
ü Borrowings from friend/ relatives
ü Loan from Housing Finance Companies

Structure the means of financing in such a way that you get maximum tax incentives. Though conventionally, self-financing is preferred by many, it makes financial sense to avail loan to claim tax benefits.

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