Bangalore house prices | August Ventures Private Limited

A checklist of things you need to do before you buy your own new home, especially with new normals in the work place.

Sure, you have thought about buying your own new home, making memories in your dream home! And, we have also discovered the ease of work-from home too, though we may need a larger home with everyone staying in.

This is probably a good time to invest in your dream home, a quick search of “new homes for sale near me” shows you your familiar locality and incentives offered by property developers- like lowering of the asking prices to stamp duty exemptions, even free air cons!

But real estate purchase is a big decision, it is not a shoe or a hand-phone you can return if it does not suit you well. So we share years of our learning to give you a list of things you need to do before you actually make the purchase.

Familiarise yourself with the property market

You have seen newspaper ads, and talked with your family and friends. But before jumping in, you need first-hand knowledge about the property market and realtors in Bangalore. Understand the basics of residential property in Bangalore, the different property types and land tenures. Also the types of home loans and guidelines to repayment, as well as what to look for in a good property developer. The top home selling websites and researching Bangalore house prices is a good way to start.

Rent vs buy a home of your own

Will you possibly relocate for work? Are you building your retirement assets? Do you have expenses like children’s education?

The eternal debate of which is better- rent vs buy a home all depends on what YOU want. They say it is cheaper to buy vs rent your home if you live there for more than 5 years. There are several buy vs rent calculator apps too which can help you.

The advantage of owning your dream home means you can live rent free, and after loan repayment, the home is all yours. The advantage of renting is that you can afford to live in a more expensive rental.

Ask yourself a few questions about where you see your future, your answers will guide you.

How much can you afford

Calculate how much you can put away each month towards home loan repayment, to guide where you buy, how big, what kind of renovation. Most financial experts advise that monthly instalments not exceed one third of household income.

You will also need to complete your risk assessment before you start, as well as provide the last 3 months salary slip if relevant. Banks will check your credit cards and car loans repayment records, as well as your debt-service ratio. For now, just remember this is the calculation:

DSR = (Total Commitment ÷ Nett Income) × 100

For the calculation of loan eligibility, visit RBI guidelines for buying property

Researching the location

Check the neighbourhoods to see public transportation, location of schools if relevant, local shopping and entertainment.

To understand the importance of checking out the location, click here

Tips: Don’t depend on second hand information or be swayed by glossy brochures or fee waiver offers!

Research price points

Work out a median property price per sq ft of the location you have chosen. As well as the average unit size and the number of bedrooms. This gives you a bargaining power when it is time for negotiations.

Calculate all costs for the bigger picture

Before the gruelling on-site visits, calculate your income and the expected outlay, including the down payment. Home buyers typically need to put down 10% of the home purchase price as the down payment, while the rest is financed with a bank loan.

You will also need to set aside another 10% of the property price to pay for the lawyer fees, stamp duties, other valuation fees. Some developers absorb some of these costs, buyers have to pay the rest themselves.

Tips: You can also budget another 10-15% for doing up the home, furniture and fittings and other customizations to your dream home.

Still to come- shopping for home loans. Watch this space for more details

Finally, begin your property search

What kind of home are you looking for? Apartment, condominium, a large complex, individual houses, villas?

To understand the benefits of large properties vs smaller, click here

There are a lot of top home selling websites to help you make the selections of the places you would like to visit.

Do not forget, check the reputation of the builder. Apart from glossy brochures, beautiful sample flats, do your own research about the realtors in Bangalore and their websites. Check the ease of locating contact details, customer testimonials, resident feedback, construction history for realtors reputation. Understand their commitment to the environment and initiatives for recycling and ethical constructions processes.

Hiring a real estate agent and other experts

Some prefer to outsource the search to an agent for unlisted properties. Some prefer agents to avoid tedious and time consuming processes. Others do their own research rather than paying the fee, this is usually 2% of the purchase price.

Even when the developer cover legal fees, it is recommended to get your own lawyer to draft and sign the agreements. Whatever you decide depends on what you are comfortable doing, there is no rule that you have to call in these experts.

The bottom line

Once all the paperwork is completed and initial payments are made, you collect the keys to your brand new home. When it is a ready property, the fun part of interior decoration can start, and you can start planning for the house warming party! In most cases there is a wait for two years for the construction to be completed.

This overview should help you on the path to filling in any gaps in your home-buying knowledge. Remember that the more you research the processes before you even start, the less stressful the whole process will be.