Rules are Rules – to be followed strictly

By Accommodation Times Bureau

There will be a constant thinking process going in the back of your mind when you are supposed to buy
a flat. Location, area, costs and hidden costs, developer’s profile, etc are few things which will be your
matter of concern. There are times when you have to take step backward to suit yourself considering
how the ongoing scenario of the realty market is. Henceforth, one will have to stick to a certain set of
rules to crack a right deal.

It is a pre-requisite matter concern to fix a budget that will suit your pocket. It will also decide on the
possibilities where in the city you can buy the house. It may not be possible for everyone to have
sufficient cash on-hand for the down payment. Therefore, it becomes necessary for them to apply for a
bank loan. It could be a personal loan or a home loan. There are a lot of schemes that are available for a
customer to choose. The banks may provide you funding of up to 85 % of the flat cost, but one has to
also keep in mind that your EMI payments should not cross maximum 40-45 percent of your take home
salary which can be further less if you are a single income earner in the family with kids.

One should avoid taking two loans at a time since it later becomes very difficult to serve two loans.
Loans are definitely a vicious circle of EMIs’ and its interests. It will be ideal if can get a soft loan from
your family members then too it is advisable to go ahead.

Other costs
In an under-construction/ready flat purchased from the builder, you will get a breakup of the total
payment to be done which includes not only the flat cost but also charges for stamp duty and
registration, electricity meter, club house corpus, one year maintenance and VAT. It is also necessary to
check that there are no hidden costs whilst a deal is supposed to be signed. But when for resale flat, you
will also have to figure out if there are any unpaid dues owed to society, monthly maintenance cost, cost
for painting repairs, furniture, etc and not forgetting the brokerage to be paid to your broker.

Once the budget is decided, you can get an idea of the number of flats in a particular location. It will
also help to locate flats with different areas. But things can be vice-versa also. Location can also decide
the budget only if you have a specific location preferences. Location is important as you will be able to
figure out whether all facilities such as public/public transport, schools, shopping malls, nearest railway
stations are within the accessible distance or not. The poorer the connectivity the higher will be your
monthly outgo towards commuting and shopping for essential services. If your budget is low then you
have to make a choice between a bigger house in a far locality and a smaller house in a well connected

Ready flat/ Resale/ Under-construction property
Generally, it depends on your budget to choose between the ready flat or resale or an under-

construction property. If given a choice, people most likely would want to buy either a ready to move
flat of a new construction where all the connectivity has been provided. But if the budget is a constraint
here, then you can choose under-construction property as it is available typically at a discount over
ready flats. A word of caution here- you need to check the past track record of the builder and the
prevailing market situation before booking as under-construction flat as the possession date might get

Get Your Credit Score
Today all financial institutions access the applicant’s credit report from CIBIL, which is the prominent
credit bureau, created for assessing the individual’s credit worthiness. The higher the credit score the
better is the credit history. It is always better to take an informed decision since it involves your life’s
biggest investment.

Think before you leap !

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