Property81 Home Buyer Guide

HOMEBUYERGUIDEPROPERTY81.COM
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You, being a first time home buyer, are confused as there are many
options available to you.You do not know what to do.
“Still, you’re eager to take the plunge”.
Dear, you’ve made my dream come true ! ....
I love it - This is what I wanted !
Finally, I got it what I was looking for !
is still not a good investment option in India. As far as
investment is concerned, most of the Indians prefer ‘yellow
metal’over a piece of land.
Indians will splurge their money on events and festivities but
will generally hesitate to buy a property. Somehow, you have
managed all these things in a rented house so far. Now
you’ve arrived at a decision to buy a residential property for
yourself and your family.
You, being a first time buyer, are confused as there are many
options available to you. You do not know what to do
because there is still a dominant fear of losing money. You
are afraid of being let down like a few you’ve read about in the
newspapers and heard on television. But you’re still eager to
take the plunge.
Hereafter, this article will guide you to ‘secure’ your dream
home.
These are phrases that one
loves to hear from near & dear
ones. After all, buying a home is
an achievement & for many a
daunting task, because of the
risks associated with the
investment.
What are those factors and why
a r e t h e y n e c e s s a r y t o
understand before buying your
dream home? Just relax and
read on.
Now that you’ve made up your
mind to jump into the realm of
real estate, something that may
bother you would be the overall
financial load on you. Of course,
the pleasure of bearing this load
is much more than any other
thing. There is another aspect to
this as some may be adding
assets to an existing one, a
second home for short-term
investment or simply to say reap
profit or earn rentals.
For first time home buyers, this
is certainly not an easy decision
to make in the days of
skyrocketing prices especially
in a city like Mumbai. You must
have already planned for the
future of your kids and saving
for their upbringing /education
/marriage etc. Real estate, as
mostly but wrongly believed,

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1. Fear of making a mistake
2. Fear of words you say
3. Fear of incurring debt
4. Fear of being lied to
5. Fear of unknown
6. Fear of being sold
7. Fear of losing face
8. Fear due to bad experience in the past
9. Fear of prejudice based on third-party
opinion or subconscious fears
10. Fear of losing capital

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Purchasing a home for self-use is far different than buying a property for
an investment.
Elders keep advising younger
folks to plan investments as per
available resources. So, being
well aware of the needs of your
family you must take into
consideration what actually is
required in your home.
In simple words, what you have
to buy? Do you want the house
for permanent use or for a short
period? Will it be a short term or
long term investment? Most
probably, this will be a long term
investment as owning a home
gives a person a basic necessity.
Purchasing a home for self-use
is far different than buying a
property for an investment. The
former gives you physical and
mental security while the latter
provides you a monetary profit.
“To be happy at home is
the ultimate result of all
ambition, the end to
which every enterprise
and labour tends, and of
which every desire
prompt the prosecution.”
Samuel Johnson
Did they face any difficulty in getting to the site?
Where do they live?
How big is their family?
Where is their workplace located?
Are they looking to invest or live?
What is the time horizon/expected ROI they
have in mind?
What is their budget and source of funds?
Get them to share their achievements.
Find something authentic to compliment
Find common ground, such as having kids in
the same school, similar hobbies, etc.
Be truthful and give helpful advice
Ask them what a home means to them
Ask them what their top three criteria for owning
their dream home are?
Why they have chosen this preferred location?

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With a vast canvas in front of you, almost every region around you will
discover pros & cons.
T h e s e l e c t i o n o f
location depends upon
your finances and how
well they can be
managed.
With a vast canvas in front of
you, almost every region
around you will discover pros &
cons. The greenery, bustling
marketplaces, business
centers, superior infrastructure,
easy connectivity, charming
neighbourhood can easily
attract you.
Ultimately, you compile the
overall situation and finally put a
dot on the map on a location
which suits best to most of your
needs.
Location plays an important role
in life because upto a large
extent, the address defines you.
Finally, the selection of location
depends upon your finances
and how well they can be
managed.

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CONSULT YOUR FAMILY ON THE BUDGET
When comes the word budget, it is always advisable to consult your
family. It will help you in alterations to be made in family expenses.
You may have many or at least
one source of income that can
help pay for your dream home.
You have drawn the plan to own
a house and further selected the
location but you find it little more
stressful on your pockets. What
will you do to fix the budget for
the house purchase?
“What will you do to fix the budget for the
house purchase?”.
While discussing the budget with
family members ask them to be
realistic in your future needs.
Strike a right balance between
your household income and your
spending. Being realistic is the
proper planning that ensure your
experience of owning a house
pleasurable.
First of all, discuss your plan with family members. As
family comes first, take them into confidence and ask for
their active participation in the transaction so that they get
ready to adjust to future compromises, mostly financial,
due to sudden burden. When comes the word budget, it is
always advisable to consult your family. It will help you in
alterations to be made in family expenses.

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Once the deal for the chosen house is sealed, you will have no chances
of altering its size perspective.
“Still, you’re eager to
take the plunge”.
Well done on bringing your
family aboard! This is the first
victory!
On the basis of your budget,
you must have an ‘imaginative
glimpse’ of your proposed
house. How big is it? Is it a
bungalow or an apartment / flat /
row house / farm house? You
know your needs and you’ve
also fixed the location and
worked on the budget. Here is a
point to remember. Once the
deal for the chosen house is
sealed, you will have no
chances of altering it size
perspective.
Have you thought of a bungalow? If yes, then you must have
given a thought to its maintenance. You may also need to look
at things such as accessibility for elders and children in the
one or multi-level bungalow besides open space for the
family, and the investment returns.
If you have selected an apartment, then it should reflect a
blend of lifestyle you’ve dreamt of. Apartment can be given a
fresh look any time you want and its maintenance is taken
care by third parties. It may also come with some lifestyle
amenities along with added security features.
And as far as a farm house is concerned, it’s a farm after all.
Make the most of the open space!
The decision of selecting the size of your house mostly
depends on future needs. If you are going to stay with
parents, the requirements and preferences will change. In
case the house is designed with future perspective like rooms
for elders and children and enough space for daily chores, it
will be a perfect selection.

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There are all types of
properties available in the
market. Try to find out trends
in property prices at the
selected location. A highly
developed sector at this
location draws similarly high
pricing and moderately
developed sector draws mid-
level pricing. But in a
developing area, negotiable
pricing may attract you the
most. It means pricing trends
vary in different types of
locations.
Price trends are generally influenced by the developments,
mostly infrastructural, initiated or to be taken up in the
particular area. As you’ve understood pricing in the said
locality, you need to find out what social and physical
infrastructure is being planned for the area, what will be the
contribution of property developer in this regard, how those
upcoming developments will enhance future lifestyle and
pricing etc.
Does it provide facilities immediately needed? Do you see
social and business establishments in or around your
prospective abode? You will have to live in such an area
where social and business infrastructure such as hospitals,
schools, malls, market emergency services etc if proper
attention is not paid towards selection of location.
Commuting or connectivity is
the key driver for developing
an area into a business,
commercial or residential
market. Railways, highways,
airports or ports connect you
to the world outside and
make your life easy. If the
location selected by you is
not connected well by at least
one of the above public
transport means, then you
w i l l h a v e t o m a k e
adjustments at almost every
step. Easy access to modes
of travel ultimately helps in
enhancing one’s lifestyle,
which is important in today’s
hectic lifestyle.
“If the location selected by you is not connected well by at least one of
the public transport means, then you will have to make adjustments at
almost every step”.
“Price trends are generally influenced by the
developments”

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Keep in mind the demographics of the area as safety for
women, children, and senior citizens is of utmost importance.
T h e r e a r e h u n d r e d s o f
parameters you should look at
before concluding the deal.
Some of these parameters are a
must.
Choose an area which has access to hotels, restaurants,
theatres, malls etc so that you have enough options to utilize
your leisure time.
Consider an area far away from
pollutants like dumping
grounds, industrial units, health
hazards etc.
Being a cultured, educated and
respectable person, you
wouldn’t even dream of getting
affected by the criminal
elements. It is the nature of a
peace loving people to stay
away from criminal activities
but eventualities cannot be
ruled out if one has close
accessibility to crimes in areas
notorious for such activities.
You don’t need to get
hypersensitive also because
law abiding forces remains
there in close vicinity. Still, get
your doubts cleared from
residents living in the area.
Besides, media also keeps
updating you on the scenario.

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After walking down the locality,
understanding its characteristics
and zeroing in on the property,
now pay utmost attention to the
project where your dream home
is situated.
This is one of major factor that
has been affecting a home
buying decision nowadays. This
is because stress level (due to
various reasons) is increasing
and recreational activities are on
the decline when compared to
the past generations. At such a
point of time, the person requires
comfort in the form of an oasis
just around his home. Thinking
positively in this direction, many
developers have started
providing this benchmark to
customers in different designs.
Open spaces like parks,
landscape gardens, walking and
cycling tracks, children play
areas, courts for games like
badminton, tennis etc have
become essential in urban
lifestyle. Size of such spaces
may vary depending on the
number of occupants of the
residential project. But one thing
is certain that availability of open
spaces shoots up property
prices.
Being a caring and doting person, you find it binding on
you to provide your parents and children the environment
suited to them the most. A housing unit free from physical
dangers and environmental safety from traffic, pollution
and social menaces has become the necessity for such a
person. Being so, you have to pay special attention to
indoor and outdoor housing designs planned by the
builder.
Indoor things such as sharp edges of the rooms, exposed
electrical wires and sockets at lower heights, toxic paints,
wooden polishes, floors, faulty bathroom fittings, skidding
tiles may harm the kids and adult alike. Outdoor things
such as play area location nearby house, play
equipments, protective surface, correct height and depth
of the kids’ pool, places for intermingling, sensors at
elevators etc will make the housing complex safe for
children and adults.
Open spaces like parks, landscape gardens, walking and cycling tracks,
children play areas, courts for games like badminton, tennis etc have
become essential in urban lifestyle.
“Ahousing unit free from physical dangers and
environmental safety from traffic, pollution and
social menaces has become the necessity for
such a person”.
Open space

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You just have had the concerns
of kids and adults addressed.
Now, it’s the turn of your ‘home
minister ’ whose greater
satisfaction will lead to the
family’s ultimate satisfaction. I
mean to say, your spouse will
keep you prodding all the times
if your housing unit lacks
amenities needed the most by
home makers. Excluding basic
necessities such as water and
electricity, what are the other
amenities? Have a look at it!
Though water and power supply
is the necessity, its back up
amenities such as emergency
water storage tank, power
generation machine, generator
etc should be in place in a
housing complex. In case of
unexpected power failure,
children and elders living on
higher floors face difficulties in
getting down through staircases
while housewives have to cope
up with situations arising out of
water shortage and darkness in
common areas. It is always
recommended to install an
independent power transformer
so that it eases the heavy load of
power consumed by the
common transformer of the
housing complex.
There will hardly be any family living in apartments in metro
cities without a fleet of vehicles, at least a two-wheeler and a
car. The parking facility, particularly covered one, suits the
most to all. If extra space is available at a certain cost then it
will be more than enough because keeping vehicles
unprotected may disturb your peace of mind.
You not only have an asset in vehicles but also in the
premises of your residential complex. The security of these
assets, including your home, becomes imperative as loss of
assets is not good for financial health. All assets should be
safeguarded manually as well as digitally. Movements of
unidentified people roaming in nearby area must be
regulated all the time. Hence, deployment of full time security
personnel must be made mandatory.
Security, your personal assets as well as societal assets, is
entirely a very important subject to deal with separately
because your neglect of this aspect may cause you a harm of
a lifetime. Nobody can predict what’s going to happen to you
anytime. So, keep residential security on top of the agenda
and install quality locks, intrusion alarms, fire extinguisher,
smoke detectors, flashlights, watch-dog, a two-way
communications system or telephone etc.
Females give intense thought to comprehensive growth of
their kids because they know children cannot remain
confined in a limited space. Space to carry out physical
exercises for children and elderly persons is being
demanded these days. Hence, housing complex developers
have started adding this space as amenities in their projects.
They provide terrace to housing complex residents for small
occasional gatherings.

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Depending on the type of your
lifestyle requirements, home
makers are seen longing for
amenities out of home such as
swimming pool, spa, fitness
center, gaming zone, movie
theater, wine cellar etc. In the
house, they would love to have
Italian marble flooring and
wooden flooring in bedrooms,
vitrified tiles in the kitchen and
designer tiles in the bathroom,
aluminum windows and glass
railing for decks and balconies,
modular kitchen and piped gas
connection, views from galleries,
fitted A/C, internet connectivity
etc.
After thorough check of the
project development, the final
check will be of the builder who
has promised you different level
of comforts. What will first come
to your mind? Will you blindly
believe that what has been
promised by him/her will be
provided cent percent? You may
have doubts. This ascertains the
fact that you are the person with
a smart brain. Hence, pull your
resources together and find the
‘credibility’ of the developer of
your ‘would be house’. Find out
these things to clear your
doubts.
Remember that unapproved projects are not given
occupancy permissions hindering basic facilities such as
water and electricity connections and roads, drainage and
street lighting. You should seek copies of ‘No Objection
Certificates’ (NOCs) obtained by the builder from various
departments of the local governing bodies.
It is very important for you to ask for written assurance
from the developer about construction quality of the
project because you will have to bear the losses if quality
is compromised. It happens as developers want to earn
more profit in less investment. To get your doubts cleared
about developer’s quality track record, visit sites earlier
completed by him.
Developer’s reputation comes under scanner if he fails to
deliver the project on time. Delay in the project may also
result in compromise on project quality. It is always
advisable to invest in a project of builder who has the track
record of timely delivery. This increases the interest of
home loan, especially in under construction properties,
and delay in project delivery hampers appreciation level.
Hence, credentials of the developer must be checked with
property attention. Due to lack of a regulatory body to
oversee the quality of property related deals in India, word
of mouth and media reviews remain the only medium to
rely upon for information on developer’s credibility.
If you believe in that builder’s
credibility is proven through
flamboyant advertisements in
the media, then you are
misleading yourself. You should
be cautious of marketing and
p r o m o t i o n g i m m i c k s
exaggerating real estate
projects.
Due to lack of a regulatory body to oversee the
quality of property related deals in India, word
of mouth and media reviews remain the only
medium to rely upon for information on
developer’s credibility.

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As you have chosen the
property as per your budget,
find out options for a home loan
to finance its acquisition. Think
what you should prefer; Down
P a y m e n t p l a n ( D P ) o r
Construction Linked plan
(CLP). DP comes with
maximum discount while CLP is
a mere protection against
construction and other delays. If
you can afford a down payment
between 10-30%, then go for it.
But remember to strike the
balance between loan amount,
its tenure and EMI.
It is observed that people opt for
maximum loan amount with
longest loan tenure so that EMIs
get minimized. We suggest you
to ask yourself how much EMI
you can afford to pay. Based on
your age and presumed EMI,
calculate loan eligibility for
different loan tenures. In case
your maximum loan eligibility is
less than required for the
property purchase and you
have little less margin money,
you can add ‘earning’ family
members as co-applicant.
“Remember to strike
the balance between
loan amount, its tenure
and EMI”.
“In case your maximum loan eligibility is less than required for the
property purchase and you have little less margin money, you can add
‘earning’ family members as co-applicant”.
The real sticky issue in a house purchase process for a
common buyer remains to be the raising of finances. When
the down payment is not sufficient, he/she has to take a
personal loan from financial institute, sell investments, and
borrow money from family members or relatives. The home
buyer can also combine incomes of his family members to
meet the financial requirement for home purchase.
Personal loan: Taking personal loan is the worst thing
because it comes with 14-20 per cent interest rate and the
limited tenure. You may feel immense pressure on your
finances as EMIs are high due to short tenure of loan.
Selling personal investment: Personal investments in
mutual funds, stocks or precious metals giving good returns
can be sold to raise fund for home purchase.
Loan against insurance: If you have life insurance policies,
you could take a loan. The maximum loan amount available
under the policy is 90 per cent of the surrender value and 85
per cent in case of paid-up policies, including the cash value
of bonus for endowment policies.
Loan from family: The easiest way is to take a loan from
family or a friend. It may come at a zero-interest cost and the
pressure of returning it immediately most likely remains less.

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Be ready for payment of taxes on
completion of your property
purchase. You will have to pay
taxes mentioned below.
Stamp duty: Stamp duty is
charged on market value or on
the agreement value whichever
is higher. Stamp duty may also
differ on the basis of jurisdiction
as is the case of Maharashtra
State where it is 3% in Nagar
Panchayat, 4% in Municipal
Council and 5% in Municipal
Corporation areas. But it varies
from 5% to 9% in different
regions.
Registration fee: Registration
fee is 1% on market value or on
the agreement value.
VAT: One percent (1%) Value
Added Tax (VAT) is applicable to
properties which are in under
construction stage. You need not get too worried as
there are some benefits offered
on home loan.
Tax benefits on home loan become more attractive in
terms of interest repayment and principal repayment. As
per Section 80 C of the Income Tax Act, loan seeker can
claim the component of principal repayment amount
along with Life Insurance Premium, NSCs, ELSS, EPF,
stamp duties and registration charges. The deduction is
restricted to Rs 1 Lakh but only for residential property
and not for the commercial one. You can claim principal
repayment if you have taken housing loan from banks,
LIC, State and Central Government, Public Sector
Undertaking.
For the payment of interest, Section 24(b) allows the
deduction of interest repayment on loan taken to buy or
construct the home. You can claim the benefit for loan
taken even from relatives and friends for commercial and
residential property. Annual deductions upto Rs 1.5 lakh
are available for self-occupied and let-out properties.
Interest deduction can also be claimed for under
construction property but in the year of completion of
construction.
Be ready for payment of
taxes on completion of
your property purchase.
Tax benefits on home loan become more attractive because of interest
repayment and principal repayment.

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d) Plan designs:
The building plan and layout plan also need to be approved by
the authorities. This is important because the layout should
be in accordance with the National Building Code of India
(NBC). Verification of this document from the local municipal
authorities is a must check for you.
e)Area master plan:
Real estate developers usually claim future infrastructural
development near the project to boost your confidence for
investment. It is good to look at the master plan for the area
and get it verified by the concerned authorities.
f) No objection certificates:
You also need to get the copies of urban land ceiling,
environment clearance, and NOCs from the authorities for
electricity, water and lift facility installation.
You, being a first time buyer, are confused as there are many options
available to you.You do not know what to do
“Still, you’re eager to
take the plunge”.
As you have already found out almost everything
about the property, throw a final look at the above
mentioned points.
a) Title deed:
Title deed is the most important
document. It gives details about
ownership, rights, obligations
and mortgages on the property.
It verifies whether the project
land is registered or not.
b ) A p p r o v a l s f o r
construction:
ACertificate of Commencement
(CC) is mandatory to start
construction of a property. The
Town Planning and Engineering
Department issues this
certificate on the basis of actual
inspection of the foundation and
building boundaries.
c) Land use certificate:
This certificate ensures that the
property of your choice is in the
residential zone. This needs to
be done because residential
properties on a commercial or
industrial zone are termed
illegal in India. Whether the land
is a ‘converted one’ from
agriculture land category to
residential category, seek the
order issued by competent
authority from revenue
department.

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In case you find it difficult to
engage yourself or a family
member in searching for a
property due to various reasons,
then you have the option to
render the services of a property
consultant. As you know this
person/firm possesses proper
knowledge of the real estate, you
can rely on him/her for finding for
you the best property.
Still.... It is better to understand
the importance of the brokerage
system and the need of a
property consultant/broker.
What is the need of property broker’s services?
It is true that a very few of us want to associate with a
broker. But it is also a fact that we have to take their
services at some point where we feel helpless. This is
because they know almost everything about the
properties available in the market and the legal
requirements for property purchase.
They facilitate the deal and creates trust between the
buyer and the seller. He is a part of a vast network of
property brokers and has the professional ability to
negotiate. They have acquired the professional
excellence to see the problems before they occur
regarding your property. They also offer tips and
suggestions on property financing and tax saving. They
may even find a way for your successful exit from the
property investment.
Broker knows almost everything about the properties available in the
market and the legal requirements for property purchase.
In countries like US,UK
Singapore etc. home
buyers prefer to take
services of the real
estate agents.

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Being not a subject to the whims of a landlord which you might
have experienced during your stay in a rented house, you are
now free to paint your dream house as you wish. Your
children will be able to roam free without any rebuke from
anyone and will enjoy the bliss of new social environment.
You will also feel stability in day-to-day life and improvement
in financial health. With your net worth increasing on the basis
of your newly owned home, appreciation in future years is
guaranteed.
Lastly, you are now the proud owner of a house. This is not
only the monumental goal achieved but also the tool you have
handed over to the family for progress in life. So, settle down
happily in the home you ‘now own’.
Now take a deep breath
and enjoy the stay in
your ‘dream home’.
This is not only the monumental goal achieved but also the tool you have
handed over to the family for progress in life. So, settle down happily in
the home you ‘now own’.
After extensive work of
searching a property and
completing all the formalities for
owning it, now take a deep
breath and enjoy the stay in
your ‘dream home’.
Being the owner of a house you
and your family dream of is a
feeling completeness. This is
because it is a big achievement
in a housing-starved country
like India. Owning a home is one
of the most cherished dream
that is blessed with benefits
such as quality of life and
financial stability. With home
ownership, these below
mentioned benefits come to rest
with you.

1098, Regus Business Centre,
Trade Centre,
Bandra Kurla Complex (BKC),
Mumbai, India, 400051.
Mail : info@property81.com
Website : www.property81.com
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CONTACT US
Property81.com (www.property81.com) is premium real estate portfolio
management consulting company owned by Blueberry Consilium Private Limited,
is engaged in real estate investments and advisory services and working with
selected real estate developers. We choose properties after extensive research
before proposing to our clients meeting their investment needs and goals.

Property81 Home Buyer Guide

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