Buying a property is possibly the biggest investment in an individual's life. People put all their life savings and resources into purchasing the house of their choice. So, buyers must be at least familiar with the common terms and practices related to the process.
Most people opt for conveyancing services to complete all the legal formalities effectively. But, still, it is better to be knowledgeable regarding property trade. Because the conveyancer will guide you, but the final decisions will be yours only.
For your help, we have listed the top things below that you should consider while buying a property. So, let's check them out.
Things To Consider Before Purchasing A Property
Buying a property is a huge financial investment. So, it is better to have clarity over your own budget in the first place. It helps you filter the available property options and only consider the ones, which are relevant to your spending limit. You can compare the property rates by getting quotes from various builders in the locality. It provides you with an idea about the estate rates in the respective area that help you avoid overspending.
You can also take the assistance of a legal expert operating in that particular area. For instance, if you want to purchase a property in Melbourne, the local conveyancers in Melbourne can effectively guide you. They can help you get the house at a reasonable price. Moreover, there will be additional expenses that will be required, after you purchase the house. So, don't go out of bounds of your budget and avoid overspending.
The carpet area refers to the area between the walls of the house. Before buying a property, you should have clarity on it. Because the actual area of the property is more, due to the thickness of walls and other factors. So, the carpet area will always be less than the actually listed area.
In some scenarios, two flats that are adjacent to each other share a common wall. So, the property price for the area in which the wall is built is equally divided between the two owners. However, the area is not so large, but while buying an estate, these additional expenses can eventually sum up and affect your budget.
In short, by analysing the carpet area, you not only get more clarity about the estate that you are going to possess but can also save money in some cases.
It is essential to check the previous land record before buying a property. It lets you know if the soil quality, topography, and other factors related to the particular space are as per the standards. Besides, by doing research you can find out if the property was in a dispute previously or if its record is clean. If the house is still in dispute when you buy it, you are inviting various legal problems for yourself.
Moreover, the property deed must be checked carefully to ensure that you are the official owner in the documents. By keeping all these factors in mind, you can save yourself from the hassle of legal obligations later on. If you are unfamiliar with the legal terms, you can also hire a conveyancer or property lawyer to make all these checks and verifications on your behalf.
You must have the permissions and legal approvals from various government departments to construct a house on a specific property. It includes NOCs and other related authorisations from the municipal corporation, electricity board, water supply board, and more. Most people are unable to manage all these formalities on their own. For this reason, they hire a conveyancing professional for expert guidance.
If you opt for a home loan, the respective bank will check and approve all your documents. In that case, all the above formalities become more important because if any irregularity is found in the documentation, the bank may deny sanctioning the loan.
Most property buyers face the problem of "delayed possessions". It refers to the situation when the payment is done but the respective property is still not transferred to the buyers' name for a long time. You should have a clear idea regarding when you will actually get possession of a property.
Most builders keep a "grace period" of a few months. It is the time that they take to complete all the legal formalities before providing you with the property's possession. A good approach is to communicate with the builder in advance and ask how much time will be taken to transfer the property title to you.
This point becomes the most important if you are planning for a home loan to buy the property. Generally, banks are very specific regarding which builder they will finance. If they found that the builder that you have handed over your construction project doesn't possess a good track record, they won’t pass the loan. So, before choosing a builder, you should check their past work and overall reputation in the market.
If you find the profile of the builder promising, only then proceed further. Moreover, you can compare the interest rates that different banks are charging. It helps you figure out which bank is the most profitable to take the loan.
Additional Charges and Taxes
The property price is the main expense, but there are some additional charges and taxes as well that you need to consider. Some of the common ones are stamp duty, house loan processing charges, various taxes, registration charges, etc. Arrange your funding accordingly to avoid running out of money at the last moment.
Moreover, familiarise yourself with the basic rules to make a property deal which is profitable for you. For instance, if the builders fail to give your property possession within the grace period, they need to pay you a compensation amount. Most buyers don't know about these rules, and that's why builders and other real estate professionals manipulate them for their personal benefit. However, with the help of a legal expert, like a property lawyer, you can effectively manage the additional taxes and charges.
After going through the above points, the individuals looking to buy a property can avoid common mistakes and profitably close the deal. By keeping key factors in mind, such as property price, flat's carpet area, legal approvals, taxes and more, you can make the process hassle-free. Moreover, you can also hire a legal expert like a conveyancer or property lawyer. Such experts provide you with the right advice at every stage of the deal, making the property trade process simple and easy.