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Buy a house

Buy a house

Why should I buy a house?


In most cases it's better to buy instead paying a rent and to buy as soon as you can afford to do so. The only exceptions are for people who have very low rent, or who plan on moving in a few years.

Most people think the benefit in buying is to "stop throwing your money away on rent," but in fact the equity you build from buying is mostly offset by the money you will "throw way" on taxes, insurance, maintenance, and mortgage interest, which renters don't pay.

Therefore real benefit from buying is that you freeze your monthly payment for 15 to 30 years, and then you stop paying it altogether..

In addition buying or building a house is a good investment for your future. You can sell or rent your house if you are not planning to live in it.


How can I afford to buy a house?


You don't pay cash when you buy a house. If you had to do that then nobody could afford a home. Instead you make a small down payment in cash (10 to 20% of the sale price), and you get a loan from a bank called a mortgage for the rest.

You can pay the loan rental monthly for your Home Loan within a period of 15 or 20 years until the loan is fully repaid.

The higher the down payment you can make, the easier it is to get a loan, and the lower the monthly payment is.


What is the property purchase process?


When buying property, it is important to hire a lawyer, who will prepare the contract. No sale is considered final without the legal transfer of ownership from seller to the buyer.

The legal owner of the property is the only one allowed to sell his property; in cases where a more than one person is considered the legal owners of the land, each owner should agree to the sale. The deed of ownership must be checked by the lawyer in the Land Registry.

Both parties sign the transfer contract in the presence of the lawyer. The buyer also makes the full payment. Transfer is considered valid from the moment of signature by both parties. After which, the lawyer then registers the property in the buyer’s name.


Tips on building a house


1. Make your mistakes on paper

Every hour you spend with a piece of paper or a computer aided design (CAD) programme could potentially save you many hours and lots of cash on the job site.

Finding a problem or mistake in your planning means doing some erasing or re-programming.

If you only discover the problem after you've built it, you've got a much bigger problem.

When you have finished your plans, build a model house out of cardboard to help you visualize it in three dimensions.

 

2. Lower cost to build - construction tips and other ways to save big when building a house

No one wants to pay more than necessary when building a home. Here are 15 tips that may help keep your building budget within reason, without compromising on the home you want.

  • Buy a large lot with a friend or family member that can be split into two smaller lots. Some of the most appealing properties may be much larger than what you want or can afford, yet the seller may not be willing to break up a large parcel. So if you can share the cost with someone else (preferably someone you don't mind having as a neighbor), you may be able to pick up a great building site for a reasonable price.

  • Consider a so-called problem lot — a hillside, narrow, or in-fill property. Generally, these types of lots are not as desirable as others, so they don't sell as quickly and often go for a much lower price. With the right plan and a capable contractor, however, a potentially difficult lot might be perfect for your new home.

  • Buy low-maintenance building materials — vinyl siding and metal roofing, for example. Even if they are somewhat more expensive at installation, they will pay for themselves in the long run as you won't have to repair, replace, or repaint.

  • Collect salvaged materials from demolition sites. Old barn wood, used bricks, and distinctive wood doors add inexpensive character to a home without exorbitant cost. Many times you can have the materials at no cost, as long as you're willing to haul them away. Just be sure to check first with the owner of the building being demolished.

  • Spend only on those things you truly cannot live without. However, don't try to save on structural components or doors and windows — for the safety and security of your home, you'll want to purchase the best you can afford in these areas.

  • Monitor construction allowances as the home is being built to ensure you're getting what you asked for (and are paying for). This includes decorative details as well as structural elements. If you and your builder agreed, for instance, that a particular brand of insulation would be installed, don't accept a lesser brand — at least not without a cost adjustment.

  • Use only a certified general contractor. The experience of a well-qualified contractor is invaluable to the home-building process. In addition, seasoned professionals have established relationships with suppliers and subcontractors — something you cannot possibly hope to get without years of experience in the business.

  • Try to avoid site preparation charges — hauling in-fill dirt, grading, clearing trees, blasting rock. These processes are expensive and add time to the building schedule. Choose the best site you can afford and then pick a plan that fits that site or can be modified to better suit the site.

  • Do you really need a three-car garage? If you only have two vehicles and you're counting on the extra bay for storage space, consider other areas of the home that will work just as well — attic space, space under a stairwell, or spare bedroom. Or put up a garden shed, which is cheaper than building a huge garage.

 

Apply for a Housing Loan

Who can apply

If you are a salaried employee or a freelance professionals over the age of 18 years with a regular monthly income (minimum Rs 25,000), individually or jointly with your spouse, you can apply for this facility

How to apply 

  • Download application form and submit the filled form to any Commercial Bank branch
  • You can also visit a branch of your choice to apply for the loan

Apply now

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