A good location

For a house, always choose a place which has good connectivity and good roads. Look out for an area that has good schools, colleges, hospitals, restaurants, markets and other infrastructure in place. It not only makes your stay comfortable, it also helps to realize more value in case you want to sell it off later. Also check the upcoming real estate projects in the area.

Make enquires about the land/plot

Make sure the land on which the building is coming up is free of litigation. You must to find out if the land is registered and whether the builder has got the permit to develop the property. Find out if the plot of land on which the building is constructed or is about to be constructed is freehold or leasehold. Make sure of the reputation of the builder or seller. You must also calculate the resale value and the rental income you will get from the property.

Make a budget

Prices are skyrocketing. Some experts says that the prices are inflated and they will drop. However, it is better to buy a house than stay on rent as rentals too are rising. You can also avoid the hassles of shifting your house every year and save money on the shifting charges. So it is important to make a budget of the house you can afford.

Make a list of what facilities you need. Prioritise your needs. Builders will always trying to convince you to buy bigger flats. Make the right calculations because as you go along you will have to bear many more household expenses.

Ideally, buy a small house as rates are inflated at present. If you are staying at a rented apartment, the money you spend on rent can be used to pay the loan EMI (equated monthly instalment).

Decide on the city/town

You have to decide on the city where you want to buy a flat. Since it is a long-term investment, make sure you can stay there for a long period. If you know for sure you have to shift out of the place, it is better not to buy a house there as you will lose a lot of transaction and establishment costs even if you sell the flat.

But if you already have a flat and want to buy another one as a safe investment, buy one in a developing town, where realty prices are likely to zoom in the near future. Even if you are living in a city like Mumbai where prices are soaring, it makes sense to buy a house in a small town as an investment while you continue to stay at a rented apartment.

You can pay off the EMI with the rentals of the new house. Tier-3 towns are developing at a fast pace so your property price will also appreciate in a short time.

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