Home Buying Checklist: Key points first-time homebuyers should consider before investing

A first-time home buyer can claim an additional tax deduction of Rs. 50,000, than the existing limit of Rs 200,000 as per Section 80EE of the Income Tax Act, 1961.

home buying checklist 2022
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Owning a home has always been a lifetime goal for many today, Real estate sector has been witnessing a majority of millennials and Generation Z aspiring to own a home. However,  it is definitely a challenge for any first-time homebuyer to analyze various aspects of home buying understand loan requirements, plan their finances, identify the right location, size of the house, and many others. Thankfully, first-time home buyers enjoy certain special advantages, that incentivize them to confidently make substantial investments in real estate. 

Benefits for First-Time Home Buyers in India

Encouraging first-time homebuyers and providing them with an opportunity to invest in real estate the government of India has offered many interesting policies like tax benefits and many others.  A first-time home buyer can claim an additional tax deduction of Rs. 50,000, than the existing limit of Rs 200,000 as per Section 80EE of the Income Tax Act, 1961. The deduction is applicable only on the interest portion of the loan, which is taken for a self-occupied property. Lastly, first-time home buyers falling under the Economically Weaker Section (EWS), Low Income Groups (LIG) or Middle Income Groups can claim tax subsidies on home loans through the Pradhan Mantri Awas Yojana. 

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Factors to Consider Before Investing in Real Estate 

Primary factor to keep in mind while investing in real estate is to know if the property is value for money. 

As tedious as the process may seem, the essential prerequisites of buying a house are just a few, including carefully weighing the options in context to your requirements and budget. Since it is a once-in-a-lifetime investment for most buyers, it is essential to be aware of making the optimum benefit out of the deal. Listed below are some factors that you can consider to be able to make your very first purchase most effectively. 

Analyze the Track record of the builder 

It is necessary to understand the credibility of a developer when investing in real estate. While online reviews and ratings have their own charm in filtering the right developer it is equally necessary to step out on the ground and enquire about the builder’s track record. With RERA now in place, it is easy to know a builder’s track record, the timeline of completions, construction quality, etc. 

Find a suitable home as per the requirement

Finding a suitable home requires the determination of your present needs. For instance, determining the size of the house depends on the structure and number of members in your family. Chalking out a rough idea of how much space each family member needs and whether the house is flexible enough to allow changes in the existing space requirements is the ideal beginning of the search for a suitable house. 

Also Read: Taking house on rent? Will you have to pay 18% GST? Govt clarifies

Location survey

Another essential consideration before buying a house is the location and neighbourhood of the house in context. Whether you need a house near a place that makes it easier to commute to any part of the city easily or just a quiet neighbourhood to retire from the occupational hazard of work-life must be zeroed in on before investing in your dream house. Besides this, it is also necessary to understand the socio-economic infrastructural developments in a location which determines the capital growth of the property.

Paper works 

It is necessary to keep your documents handy while buying a house. It is important to register the sale deed in the Sub-registrar’s office of the area where the property is located. Other required papers before buying a house may include RERA registration, Extracts, No-Objection Certificate and a Copy of the Building Plan, among many others. 

Awareness regarding financial benefits 

Awareness of financial benefits is essential to ensure you can gain the most out of the purchase. As mentioned above, first-time home buyers get myriad financial benefits, making the purchase even cheaper in effect.  

Home buying is a big step towards realizing bigger and long-term goals in life. The above-listed factors will undoubtedly help the buyers (especially first-time buyers) to navigate towards the perfect home for their future. 

(By Vimesh P, Vice-President Marketing, CASAGRAND)

(Views expressed above are those of the author and not necessarily of FE. Please do your own research and consult a professional advisor before buying a property)

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