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Sunday, 11 November 2012

Ways to buy a home and SARFAESI Act,2002

Buying a resale property:

Both buying or building a home and marrying off one's daughter, are the daunting tasks on earth.

Unlike new property, buying old properties involve more risks. It involves many legal and other procedural requirements.

First of all you need to select a best place and property then follow the steps given below.

1. Consult Experts:-

It is ideal to engage a good real estate agent to locate a resale property. Most real estate agents charge fee and also help with registration, payment of stamp duty and other paper work involved in the purchase of resale property.
Taking the help of a good lawyer would also help to make sure that things are clear legally.

2.Title of the property:-

Establish the title of the property seller, whether she/he is the real owner of the property or has been given the power of attorney to transact the deal. All the documents with regard to the property need to be clear.
 You need to make sure that all the original documents with regard to the property that were given by the builder or original developer are in order. If the subsequent transfer of title are not properly stamped then it could become a big problem.

3. Existing loan:-

It is also necessary to make sure that the property documents are not mortgaged in the banks custody against a loan taken by the seller.  

4.Loan eligibility:-

Some banks may not lend money on building older than 10 years. Banks also ensure that the banks outstanding loan should always be lower than the value of the property in the market.

5.Property Valuation:-

The loan amount is highly dependent on the cost of the property. The banks property valuation may evaluate the property at a much lower rate.

6. More down payment:-

Most banks wish to make sure that you accept responsibility for the maintenance and good up keep of the resale property. You may have to pay about 20% of the price as down payment. 

7. Age of the property:-

Down payment could be more in case of older properties. Banks usually lend only on properties that are up to 20 to 50years old depending on your lender. The tenure of the loan also decreases with the age of the property.

8.Fees charged by housing societies:-

Some societies that ask for a heavy fee for transfer of ownership. It is best to consider this cost also when coming to conclusion while purchasing resale property in co operative and other societies.

Advantages:-

Buying resale property would give you 

1.A chance to settle in your own house fast and save you of high rents paid and the need to frequently shift your place of living. 

2.Tax deductions on the interest paid on loan from the bank


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