How to buy a used house or flat in India
You often get a better value buying a used house or flat which is in good condition, than buying an expensive new house. Rising construction costs and labor problems veer you away from building a new house on your own. Follow these simple steps to plan your purchase, avoid hassles and be the proud owner of your new home!
Steps
Make arrangements for funds when the idea of buying a house occurs. Bank loan needs a lot of processing which is time consuming.
Some owners prefer partial cash payments. It would sometimes fetch a discount if you have ready cash to down.
Consider the location of the house or flat before deciding to buy. Needless to say, that a residence in a good location, fetches you good value when you decide to sell.
Inspect thoroughly and take an expert opinion about the condition of plumbing, electricity, woodwork, fittings and structural problem and then bargain.
Estimate the expenses involved before finalizing, it may even get you a better bargain
Renovation always goes beyond your estimation so add another 10% to your estimate and keep the figure in mind while bargaining
A house with people problem i.e. a dispute ,a death, or owners staying far away, which has been neglected for a while goes cheap. Beware that it may be a little more expensive to renovate because of the neglect.
Ascertain whether garage facility is provided for the particular flat you want to buy. If not try to buy and deduct from your owner’s payment.
Inspect the relevant papers regarding the ownership and other conditions in the contract (incase of a flat), so that there are no disputes at a later date.
Speak to the neighbors and make sure that there is no problem for water and electricity. Consider the proximity to Hospitals, Super Markets etc.
Caution
- Avoid brokers.
- Verify the relevant papers and get them verified by an advocate.
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Comments
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I wanted to sell my property in Chennai. I just want to know how I can repatriate these funds from the sales deal and what formalities are there are that need to be fulfilled?
If you are a NRI you can
If you are a NRI you can approach your bank and ask for the procedures of repatriation.
If you are not allowed for repatriation for any reason, you have to either pay income tax as applicable or deposit in NABARD for a stipulated period.
buying real estate
What is the best way to buy a house (maybe in Pune), keeping in mind your advise to "Avoid brokers"...
I live in the Netherlands and am thinking about buying a second house to stay there during the winter.
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What is the percentage of long term capital gains tax resulting from sale of housing property, is it flat 10% or flat 20% after adjusting cost inflation index?
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