Buying a Flat - My Analysis

Hi Friends,

Recently I thought to buy a Flat in Bangalore and still searching....:)

The following is my analysis... It may help you.

1. Decided Place :
First I want to decide which city is best. With my past 4.5. yrs of work experience, I decided that Hyderabad ,Bangalore are best suitable for my family members and me.


Hyderabad: I analyzed situation in my current organization. All new projects and extension of existing projects are moving to Kolkata, Pune, Mumbai since Bangalore delivery center is full and there is no space at all. There were few projects in Hyderabad location when I joined my current organization, But those were also moved out of Hyderabad. Just 1 or 2 projects are there currently with my skill set in Hyd. Less companies in Hyd than Bangalore.


Bangalore: Lot many companies. If I want to change organization, I can easily do without relocation headache . Good atmosphere. Comfortable for my parents.






2. Decided Home/Land/Flat:
Recently I read a book 'Rich Dad Poor Dad': a very good book which I suggest to read every one who has just entered into corporate world. It tells how to plan your future and how money is important in life.

I decided that If I buy any of this, it should be useful for me now or it should generate revenue for me.

Home:

Home in Bangalore....Too much... out of budget.. leave it. Home at my village.. I have small home where my parents stay. I go there occasionally. Even I buy there I do not use effectively my money.

Land:

Land in Bangalore.. searched a lot... too costly inside Bangalore..no money. If I buy at outskirts. I don't know when it will be developed and when will I built house. But I need to pay EMI every month for that, Again room rent for my rented flat. Looks .. not a good idea.

Flat:

With in last 2 years, 70% of rent got increased for my flat. Searched, asked many experienced persons, googled for analysis. Flat also have its own disadvantages like I won't get anything after 50 years except undivided share area like 300 or 400 sq.ft. (Undivided share area: UDS: This share of land has no specific boundaries within the total extent of the land on which the apartment is built. Each and every flat in the apartment complex will have an associated UDS. The sum of all the UDS will be equal to the total land area of the apartment. )

Following link will be useful.
http://www.nytimes.com/interactive/business/buy-rent-calculator.html

With all my constraints, decided that Flat is only possible option I can bare.

3. New Flat/ Resale Flat:

So I started looking for a Flat and analyzed real estate market over 6 months. Then decided that new flat is not at all coming into my budget, started looking for resale and around 3 years old flat which looks good.

I had seen a flat which comes near to my budget with one of my friend help. Finally I could not buy that flat since its failed in verification with lawyer about property.

4. Decided my budget:


1) Checked my bank balance which I can pay. PLUS
2) Minimum of (a , b) : explained below what are a, b.

a. Bank loan I can get with my net salary.
(my eligibility for loan= ((net salary)/2)*240
(240 = Number of months you pay the EMI (20 years))

b. 80 per cent of Flat value (registration charges may consider or may not consider, It depends on Bank which we go for. Few banks does not accept if you go for registration lower than cost of flat. So I decided LIC and SBI are best currently to go for Home loan. )

Check Khatha:

'Khatha' is nothing but a type of property in Bangalore. ( A-Khatha: Legal, B-khatha: Ill Legal)

So property Khatha should be 'A'. If you find that the property belongs to 'B' Khatha, then you can forget about that property. I had seen in Karnataka state Government web sites that 'B - Khatha' is fake and suggested never buy such property. You should never get Home Loan in Govt. Banks for B-Khatha. There is possibility that you can get home loan for 'B-Khatha' in few private banks.

5. **Desclimer**:

All the above information is as per my knowledge. I am not responsible for any of your loss. This blog may help you to go in right direction.

***Always decision is yours. Your are the best judge for your situation.***