How to Buy a Flat?

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Own house is one of the biggest dreams of every family and it is one of the largest buy they make in their life. Buying a flat involves huge money and while investing such huge amount one needs to know whether he is taking a right decision or not. The procedure for buying a flat is not complicated and not so long, it is very easy and one should be careful while choosing an option.

Following are some important points which every buyer should know while buying a flat.

·         Location of your flat

·         How well the flat is designed?

·         How is the quality of construction?

·         Home Loans

·         Find out how much the flat actually cost you?

 

Location of your flat

Choosing a right location for your flat is very important as our daily life involves too much interaction with the society. Going to work, purchase of household materials, children education, health care facilities, good environment these are some basic requirement for every family in daily life. So following are some questions which every buyer should consider while selecting the location of flat.

·         How is the transportation facility in that location?

·         How far the location is from the centre of the city?

·         How is the drainage system, garbage facilities and water supply facilities in that area?

·         Does that area has play ground for children, park and garden for daily walk?

·         Does that area have good healthcare facilities like hospitals, medicals?

·         How good the environment in that area?

·         Is that area safe place to raise children?

·         How far it is from work place, school and city market?

·         How polluted that area is?

·         How far that area is from city market where people buy vegetables, fruits and household items?

 

How well the flat is designed?

How the flat is designed is one of the important aspects one should consider. A good flat is one that satisfies buyer needs and fits to his lifestyle. Following are some of the important points the buyer should consider while choosing the design of the plat.

·         What is the age of the people who would be living in the flat? If they are old then choose a flat that is either in first floor or in the ground floor.

·         Are windows arranged well? Is enough sunlight is coming into the flat?

·         If the flat is on a high floor then make sure that the building is having lift facility. And also check whether the lift is having generator backup.

·         How many corridors are present in the apartment? Many no of corridors would affect the room area since you will be paying on the basis of area.

·         Ensure that kitchen and dining room are close to each other so that serving would become easier.

·         Make sure that u have enough privacy in your flat, when the people are talking in flat next to yours then confirm that you are not hearing them.

How is the quality of construction?

Checking the quality of construction is very important while buying a flat. Buyer should check out efficiency and reputation of the contractor, promoter, and architect in the construction business. Check out the projects done by them earlier. A 6 inch external wall doesn't indicate stable construction. A 9 inch wall is always good. So check the thickness of the external wall before buying. Also consider the quality of cement and quality of iron used in constructing the flat.

Home Loans

Home loan is one of the methods of raising money to buy your dream flat. There are many companies which offer home loans and there are different features and offers. So which home loan to go with? This is an important question and one should be very careful while choosing a home loan offer.

Compare the offers

Visit the institutions which offer home loans and discuss with them about the features of the home loan they are offering. Ask them to calculate and tell the net amount of money you have to pay over the term period. Here the term 'net amount' includes interest, processing fee, administration fee and all other fees. Different rates are offered by different banks.

Ask the bank about the EMI you have to pay, different terms of the loan have different EMI and interest rates. A long term loan usually has low EMI and higher interest rate, in such case you have to pay more than what you had borrowed. A short term loan usually has higher EMI with lower interest rate. In such case you will pay less than what you had borrowed earlier. So depending upon your convenience go for a good home loan.

Check all kinds of fees that an institution charges on home loan and try to negotiate on those fees. Ask them to reduce the fees. Home loan could be a good possible way to reduce your income tax, and the income tax you saved can be used in paying the EMI.

 

Fixed or Floating interest rate

Fixed interest rate means interest rate is fixed while at the beginning itself when you are applying for the home loan. Interest would remain constant throughout the period for which you are paying the loan EMI.

This option is safe since if the market interest rate goes up it wont affect your EMI since interest rate is fixed but it would be bad if the interest rate goes below. So to tackle this there are various kinds of fixed interest are present, one of them is 'semi fixed' interest rate, in this type interest rate will remain constant for 3-5 years and after this period interest rate will be changed again.

In floating interest rate, interest rate changes according to the changes in some other external interest rate.

 

Find out how much the flat actually cost you?

How a flat is priced? Generally a flat is priced on the basis of the area, but what area? And what is the area? These are some important questions present before us.

Carpet area

it is defined as "net usable area in the flat, that is total area measured from inner faces of wall to wall" but nowadays the measurement is changed and super built area/saleable area is taken into consideration. In this type net area of the flat including area covered by the wall thickness is also considered. This also includes "common spaces area"

Common spaces area

there are two kinds of 'common spaces' areas are present. Common spaces on each floor- in this type lobby, staircases, lift etc. are proportionately divided among the flats present in that floor. A floor may contain number of flats with same or different built up areas, so in such cases the floor space is divided proportionately.

For example

a floor contains 4 flats with built up areas 2000 sq feet, 3000 sq feet, 3500 sq feet and 1500 sq feet so proportionate share in the floor space are 20%, 30%, 35% and 15%.

 

If the total space covered by staircase, lobby, and lift is 1000 sq feet then this area should be divided proportionately among them proportionate to the floor space enjoyed by each flat in that floor. So now gross area of all the four flats in that floor becomes 2200 sq feet, 3300 sq feet, 3850 sq feet and 1650 sq feet respectively. This is too much complicated since if you own a big flat in a building then you have to pay more for the common space in that floor.

 

Common spaces in the building- every apartment has a generator room, a staircase, lift, store room, a pump room so the area covered by all these is proportionately divided among all the flats present in that building

Super built up area

Super built up area = built up area + common space in the building + common space in each floor. So when you are buying a flat you will be charged per square feet of the super built up area.

 

After following the above said procedures consult your lawyer for further legal agreements of purchasing the flat.

Happy Investing!!

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