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Steps to buy a property for the first time

Posted on 08 Jul 2021
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Buying a property can be taxing for a first-timer. There are numerous steps to follow, requirements to be fulfilled and, one may be anxious about making an expensive mistake. To make things a little easier, here is a rundown of what you need to consider while buying your first property.

Fire insurance

Location

It is of utmost importance and you should choose your location wisely. Proximity to your place of work, access to public transport, safety and, proximity to other facilities such as hospitals, malls, movie theatres are things to consider while purchasing a property.

When buying in an emerging district, outside the main city, other factors should be considered, such as distance to neighboring cities and infrastructure projects in that area.

Stage of Development

In the case of a residential property, projects under construction are comparatively cheaper than ready-to-move-in properties. Projects under construction are usually compliant with fair trade practices under the RERA (The Real Estate Act, 2016) regulations.

But before booking a property under construction, the buyer must verify all the documents of the seller, from the land deed to the possession letter.

Know your budget

It’s very important to determine your budget before you start your hunt for properties. Apart from the cost of the property, you should consider other expenses as well while preparing your budget. This includes stamp duty, legal fees, property tax, etc.

Legal Diligence

While purchasing a property, it is vital for you to make sure that the seller has the title of the property and, has the legal right to sell that property. In case the property is in a housing society, you should examine the occupancy certificate and safety certificates.

You should also make sure that the sale deed and other legal documents are registered and signed by all parties involved.

Resale Value

This is a crucial factor and many homebuyers usually ignore this while making a purchase. A careful examination of the property values in the locality, demographics, upcoming plans for the locality, etc., can help you determine a property’s resale value in future.

Property Insurance

It is essential that you get some type of fire insurance upon making the purchase of your property. There are numerous options of property insurance in India that you can choose from, according to your needs. Property insurance can provide relief for items damaged by fire, natural calamities, burglary, etc., and can save your from incurring substantial economic loss.

Depending upon the type of property you are purchasing, you can either opt for a home insurance policy or commercial property insurance policy.

To Summarize

Purchasing a property for the first time is one of the most important decisions of one’s life. Extreme diligence, caution and alertness are necessary. Knowing how much to spend, deciding on a location to move to, being aware of the legal provisions and knowing what type of property insurance to get, are the things one needs to get absolutely right.

  • Property Insurance Policy
  • Product Code: 4413
  • Product UIN: IRDAN115RP0006V01202021

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This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Property Insurance, 4413 , IRDAN115RP0006V01202021)