Things to Consider Before Buying a House in India – The Ultimate House Buying Guide

Take a look at the top 10 things to consider before buying a house or an apartment in India with the help of this house buying guide.

by Akansha_B Updated: 03 Apr, 2022, 00:51 IST
9 3762

Buying a house is likely to be one of the most significant decisions a person will make in their lifetime. People put their hard-earned money and life savings into purchasing a home, and they want to make sure they do everything possible to avoid regretting their decision later.

As a result, we've put together this list of things to think about before buying a house in India to assist you in making an informed decision. To keep things simple, we'll solely discuss buying a house (apartment or flat) in a developer-built residential property in this post.

  1. Budget & Loan Eligibility

Your budget is one of the most crucial factors to consider when purchasing a home. It's entirely up to you how you reach this figure. When you buy a house, the bank will provide you with a loan for around 80% of the purchase price. As a result, you must pay the remaining 20%. To pay the 20%, you'll need to set up your finances in such a fashion that you can pay the builder within a month or two.

You should also find out how much of a home loan you can get from the bank. In most cases, it is 50 times your annual salary. Provided your monthly salary is 50,000, for example, you may be eligible for a loan of 25 lakhs if you have no other monthly EMIs. You can save on your Home loan EMIs by doing thorough research on what Banks are providing home loans and on what % of Interest Rate.

  1. Location

When looking for a flat, it's important to consider the location's primary benefits and drawbacks. You should look into the civic administration's authority it falls under and what initiatives the government has planned. You can check multiple locations at one place on 99acers or Magicbricks.com.

You should also evaluate the area from a residential standpoint, such as if it has sufficient greenery and water supplies to survive for future generations. Another factor to think about is if the location is easily accessible from all regions of the city as well as adjacent towns in the state.

3. RERA Registration

The 'Real Estate Regulatory Authority,' or RERA, is a government agency that regulates the real estate industry. Each state has regulatory jurisdiction over real estate developments. You should check to see if the project has been registered with RERA. Also, just because a project is RERA-registered doesn't imply it's without flaws. It is merely proof that the developer has registered the project with the authorities, and buyers should contact RERA if they have any difficulties.

4. Reputation of The Developer

The reputation of the builder or developer who will create this property is one of the most important factors to consider when buying a home in India. This is especially crucial if you are purchasing an under-construction property since you need to know that the developer will produce a high-quality product on schedule. You should review the builder's prior work and track record to see if he has completed previous projects on schedule.

5. Project Documentation

Now that most states in India have RERA in place, it is easier to verify the fundamental papers of a project. Check the essential documents, such as the commencement certificate, sanctioned blueprints, and, in the event of a joint venture project, an agreement with the proprietor. It is advisable to have these documents reviewed by a real estate lawyer.

You must ensure that there are no flaws with the project that might cause delays in construction or legal concerns for the builder, causing the project to be delayed in possession. The lawyer will also verify that the property's title is clear and that the builder has the legal right to build and sell the property to you.

6. Draft Agreement

Once you've made your booking, don't forget to ask the developer for a copy of the sale-purchase agreement he'll be executing with you and have it reviewed by a lawyer. Most developers have a standard structure for this and normally do not allow any changes, but you can get an understanding of what the legal requirements are on both your and the developer's sides.

Check that all payment conditions are clearly stated and that there is a provision stating the developer's duty if the property is not delivered to you within the specified time frame.

7. Social Infrastructure

Research the nearby educational institutions, hospitals, and commercial places before buying a house. Consider the distance between the nearest police station, fire station, playgrounds, and supermarkets. You should also look at the availability of fundamental necessities such as reliable electricity, cooking gas pipes, and internet service providers.

8. Constructed Space v/s Open Space

When examining a project, it's important to examine how much free space it has. When there are too many buildings or too tall structures and not enough open areas, problems arise such as overcrowding in facilities, parking, and traffic congestion. As a result, it's critical to determine if the project's open spaces are suitable to support the number of residents who will eventually use the area.


The sample project plan shown above shows that the ratio of open space to the developed areas is sufficient to meet the demands of all residents.

9. Safety & Health Hazards

You should also evaluate if the premises are safe for you and your family to live in when buying a house. It should not be located near any health dangers such as factories, high-tension cables, garbage dumps, or other buildings that may cause a health risk to you in the future. One approach to finding out is to do a short survey of the area and review the municipal corporation's most recent development plans to see whether any surrounding plots have been set aside for such activities.

10. Resale and Rental Value

Another factor to consider when buying a house is the property's resale and rental price, as well as the capital growth you will receive if you decide not to inhabit or sell it in the future. In an ideal market situation, a property will rise by around 5% in value if it is located in a desirable and growing area.

You will be in a better position to make a purchase decision if you can forecast how much your home worth will increase in the future. IndiaProperty.com is great to start to know your house or property value.

11. Additional Aspects to Consider

While buying a home is not a small purchase you can make, you now know what factors to consider when looking for an apartment. With the help of these house buying guides, we have covered the most important factors to consider when booking a house. However, here are some factors you should also consider before you buy a house –

  • Number Of Units – Check how many flats will be available in the entire building and on one floor.
  • Efficiency Of the Layout – The term "layout efficiency" refers to getting the most usable space for the money spent on a certain property.
  • Construction quality – Don’t go by the exterior of any project, get its quality analysed by a structural engineer.
  • Maintenance After Possession – Check how much maintenance you will have to pay after the possession, as in most cases the builder takes out an advance amount that would cover a couple of years of maintenance.
Final Thoughts

This brings us to the end of our list of 'Things to Consider Before Buying a House in India.' We hope that this list has provided you with some insight into the home-buying process and has assisted you in making an educated decision. Let us know in the comment section if we missed any important factors. Also, what difficulties have you faced in the past when buying a house in India.

Deal Lieutenant
Hi, I am Akansha Bhatt a Content Writer with a flair for writing for more than 4 years. I am a part of the Marketing Team at DesiDime. When not working, I love watching Anime, Paint and Play Games.
9 Dimers
  • Sort By
Deal Newbie Deal Newbie

Please suggest how and where can i buy flat in mayur vihar.I am a noob in buying property.please help.

Deal Newbie Deal Newbie

Dont buy a flat… and on Loan its a bigger no no

Deal Cadet Deal Cadet

Nice information. Well covered. May be city wise analysis would help further

Deal Newbie Deal Newbie

Actually i don’t like place where i live so wats the best n affordable place to buy flat (budget 40 lpa)

Deal Cadet Deal Cadet

it is 50 times monthly salary and not annual salary, plz correct

Talk-Of-The-Town Talk-Of-The-Town

thank you for Posting this discussion. i also found a good topic on ‘Home loan EMI’ you tagged here

Deal Subedar Deal Subedar

i appreciate that you put most of things hete.👍🏼.

however, whatever way you evaluate, if you have to buy a house you have to go by terms of builder.

RERA is one more watching entity, which does nothing, but another burden to buyers as some part of money from builder goes to them and ultimately comes to our head. 

even if all necessary permissions are given the procured land might have some litigation (like assigned, some other owner but not pooled by builder etc) and no lawyer can find that.

things vary from place to place.

have to use our own discretion as its huge investment for life.

Deal Cadet Deal Cadet

I see that paying a premium and going with the branded builders is lesser risk. This business is 50+ percent fraud in one way or the other. You would never get the value for money. But with premium builders, headache is comparatively lesser. Best is to get a decent flat in a good rental location for staying in  30 to 50 age. In between look for a retirement home somewhat outskirts of the city. Move there once 50+.

Deal Cadet Deal Cadet

IGNORE EVERYTHING ELSE, just follow the only rule below:

Never buy a house or apartment that is under construction. Buy only ready-to-move-in home. Or buy an already occupied home from the first owner. Period.

Click here to reply