Learn buying your first home in India with this detailed guide. From budgeting to registration, we cover RERA compliance, home loans, document checks, and hidden costs.
Why Buying your first Home in India Requires Careful Planning
Purchasing your first home is a milestone, but India’s real estate market can be complex. With risks like fraudulent property titles, RERA compliance issues, and hidden costs, this guide simplifies the process to help you make informed decisions.
Table of Contents
10 Steps to Buying Your First Home in India
1.Assess Your Budget and Eligibility
- Calculate your home loan eligibility using income, existing EMIs, and credit score (CIBIL ≥ 750).
- Use online EMI calculators to estimate monthly payments.
- Tip: Reserve 20-30% of the property cost for down payment, registration, and stamp duty.
2.Research Locations and Projects
- Prioritize RERA-registered projects to avoid legal risks.
- Check infrastructure developments (metros, highways) impacting property prices.
- Use portals like Magicbricks or 99acres to shortlist builders with high delivery rates.
3.Verify Property Documents
- Before paying token money, confirm these property documents:
- Title Deed (30+ years chain)
- Encumbrance Certificate(no pending loans)
- Approved Building Plan (municipal corporation)
- RERA Registration Number (verify online).
4.Apply for a Home Loan
- Compare home loan interest rates(SBI: 8.5%+, HDFC: 8.75%+).
- Submit documents: PAN, Aadhaar, salary slips, and property papers.
- Pro Tip:Opt for pre-approved loans to speed up the process.
5.Negotiate the Price and Payment Plan
- Negotiate with builders for discounts (up to 5-10%) or free amenities.
- Avoid flexi payment plans if construction is delayed.
- Warning: Never pay cash – use cheques or bank transfers for transparency.
6.Sign the Sale Agreement
- Ensure the **Builder-Buyer Agreement** includes:
- Carpet area (not super area).
- Possession date and penalty clauses for delays.
- List of fixtures and fittings.
- Hire a lawyer to review terms.
7.Pay Stamp Duty and Registration
- Stamp Duty**: 5-7% of property value (varies by state).
- Registration Charges**: 1% (average).
- Example:* For a ₹50L home in Karnataka, stamp duty = ₹3.5L + registration = ₹50k.
8.Conduct a Final Property Inspection
Check for:
- Construction quality (cracks, plumbing).
- Compliance with approved plans.
- Amenities promised (park, gym).
9.Close the Sale and Collect Documents
Obtain:
- Sale Deed (stamped and registered).
- Possession Certificate.
- NOC from the builder for utilities.
10.Move In and Apply for Tax Benefits
Claim home loan tax benefits under:
- Section 24: ₹2L interest deduction.
- Section 80C: ₹1.5L principal repayment deduction.
Consider reading this : Ultimate Guide: How to Verify Property Documents in India – 10 Essential Checks to Secure Your Investment
Common Mistakes First-Time Buyers Make
- Skipping legal due diligence on property titles.
- Ignoring hidden costs (maintenance, GST).
- Overlooking RERA complaint portals for dispute resolution.
Final Checklist for First-Time Home Buyers
- Verified RERA registration.
- Legal opinion on property documents.
- Compared home loan offers.
- Budgeted for stamp duty and registration.
- Check RERA compliance on the official Maharashtra RERA portal.
- Calculate your eligibility using the HDFC EMI Calculator
Can NRIs buy property in India?
Yes, NRIs can purchase residential (not agricultural) property under FEMA guidelines.
What is the average home loan processing time?
7-15 days for approval, depending on document verification.
How do I check RERA compliance?
Visit the state RERA website (e.g., [maharerait.mahaonline.gov.in](https://maharerait.mahaonline.gov.in)) and search by project name.
Are under-construction properties safe?
Only if RERA-registered. Avoid projects with <50% completion.
What if the builder delays possession?
You’re entitled to a refund or compensation under RERA Section 18.