First, you need to define your requirements and preferences. Here are some tips that may help you prioritise:
- Purpose of purchase – investment, lease or moving in – What is the main purpose of purchase and is it likely to change in the near future?
- Type of house – apartment, row-house, or bungalow - What suits your family’s needs the most?
- Location preference – residential, commercial, central or proximity to work/educational institute – What is your prime priority in this regard?
- Type of locale – secluded and quiet or commercial and bustling – What kind of neighbourhood would you and your family easily adapt to?
- Project type - gated community or lone tower – An Important lifestyle consideration
- Floor – ground floor with garden or higher floor with balcony/terrace – Again an Important consideration if you have children, elderly family members and pets
"Carpet area" refers to the total usable area within the four walls of an apartment or a commercial space. It is termed so because it refers to the area for which a carpet can be laid if required.
"Built-up area" includes the space covered by the thickness of the inner and outer walls, over and above the carpet area.
"Super built-up area" is the built-up area along with the area occupied by common spaces such as the lobby, lifts, stairs etc. This term is therefore only applicable in the case of multi-dwelling units.
Floor Space Index (FSI) is the ratio of a building's total floor area (Gross Floor Area) to the size of the piece of land upon which it is built.
FSI = (Total area covered on all floors of the building) / (Area of the plot)
FSI is also known as Floor Area Ratio (FAR) or Floor Space Ratio (FSR).
If you have a steady job and a respectable credit history, there is a good chance that you will find a bank/home lender who will loan you most of the purchase price of your new house. The loan amount generally depends upon your repayment capability and can be a maximum of 80% to 95% of the cost of the property, depending upon the bank.
There are several banking and financial institutions that lend home loans at competitive rates. Be sure to check all the available schemes carefully before choosing your financer.
In accordance with the governing law in this regard, i.e. Section 30 of the Bombay Stamp Act 1958, the buyer is liable to pay the Stamp Duty unless there is an agreement to the contrary.
Instruments like Agreement to Sell, Conveyance Deed, Exchange of Property, Gift Deed, Partition Deed, Power of Attorney, Settlement Deed and Transfer of Lease attract Stamp Duty on the market value of the property.
You will be liable to pay Capital Gains tax on the profit arising out of the sale of a Residential / Commercial property, which falls under capital gains.
Market value means the price at which a property can be bought in the open market on the date of execution. The prices are determined & published by the Government. The Stamp Duty is payable on the agreement value of the property or the market value, whichever is higher.
A Transfer of Development Rights (TDR) means making available a certain amount of additional built-up area in lieu of the area relinquished or surrendered by the owner of the land, so that he can use the extra built-up either for himself or transfer it to another in need of extra built up area for an agreed sum of money.
When you are buying a flat from a builder in a building which is under construction, you must check the following:
- Approved plan of the building along with the number of floors
- Ensure that the floor you are buying has been approved
- Check if the land on which the builder is building is purchased by him or is it under an agreement with an existing landlord. If so, check the title of the land ownership with the help of an advocate
- Check the building bylaws as applicable in the respective area and ensure that the builder is building without any violation of front setback, side setbacks, height, etc.
- Check specifications given in the agreement to sell of the sale brochure
- Check the reputation of the builder
- Ensure whether the urban land ceiling NOC (if applicable) has been obtained or not
- NOC from the water and electricity authorities along with an NOC from lift authorities also need to be obtained