Top 10 mistakes to avoid while you buy a house in Kolkata
By Pratik Balasaria

We all want to own the house of our dreams. Lucky for us, when you reside in the ‘city of joy’, there is a flattering amount of options for residents to buy houses in Kolkata at every price-point. However, we all know that buying a house that feels like home is no easy task. As a first time home buyer, there are many mistakes that we all tend to make. To ensure that you make a well-informed decision while selecting your flat in Kolkata from among so many houses in Kolkata for sale, we are enlisting top ten errors that you should avoid. 

Ten mistakes to avoid while you buy a house in Kolkata

buy houses in kolkata: Ten mistakes to avoid while buying houses in Kolkata

Not making a list of priorities

Everybody has a vision of their dream house and the life they want to lead. However, not every house in Kolkata can have double-storeyed terraces, manicured lawns, spacious master suites, and the works. Many homebuyers reject good properties in Kolkata because they’re holding out for an unrealistic match between their budget and desired amenities. You should make a list of priorities in terms of size, location, layout, budget, and amenities before you begin the home-hunt so that you don’t feel lost or swayed mid-search.

Consulting only one home-loan provider

The Indian home-finance landscape is a robust marketplace. There is a wide variety of private lenders, public home-loan providers, NBFCs & independent institutions that offer home loans at attractive interest rates to those looking to buy houses in Kolkata. One of the biggest errors in judgment that homebuyers commit is considering a singular credit facility, which in most cases happens to be traditional banking institutions that people have historically banked with over generations. In this industry, it’s considered good practice to reach out to a minimum of three home-loan mortgage providers before finding the best fit.

Ignoring additional costs

Whether you’re buying flats, bungalows, or duplex houses in Kolkata the asking price for the home is not the only cost you incur as a homebuyer. Various other costs such as stamp duty & registration, cost of parking slots (covered & open), brokerage to agent, and taxes are involved that can severely inflate the cost of a home. To add to it, if you’ve purchased a new warm shell apartment, you will have to spend a fair bit of money on renovating the house as per your tastes. Over the long-term you’ll incur expenses on account of property taxes & society maintenance fees on a recurring basis; you must be mentally & financially equipped to meet these expenses before you commit to buy houses in Kolkata.

Not accounting for the needs of a growing family

Buying and building a home with a short-term perspective is one of the biggest errors committed by prospecting home-buyers. You have to keep in mind the needs that may arise as your family grows and young children turn into adolescents and adults. Think about the space they may need to study or work-areas that your spouse may need to work from. Try to envision your life from a 5 to 10-year perspective and decide on a home that takes care of your family in the long term.

Obsessing about ready to move-in flats in Kolkata

As a homebuyer, buying properties in Kolkata in finished apartment complexes is far easier than visualizing a home in an under-construction project. However, the benefits of exploring in-progress housing cannot be ignored. Many leading developers offer attractive kickbacks and discounts on houses for sale in Kolkata that are projected for completion within 2 years to 3 years. By paying a small deposit, you can secure a flat/ apartment in Kolkata at a marked discount to the prevailing market rate; hence this is an option that must not be ignored.

Not exploring the neighbourhood

Leaving the area, layout, and amenities aside, there are a few other considerations that affect the quality of life that you lead in your home. The locality and neighborhood are crucial factors that impact the friends you have, the community you build,  the safety and security of your family. Do an extensive due-diligence on the suburbs you’ve shortlisted before moving in.

Looking for a house independently

While opting to buy houses in Kolkata directly from the developer or the end-seller can save you as much as 1% in the value of the property at the time of purchase, engaging a real estate agent at the time of making a purchase is generally good practice. Real-estate agents have an accurate pulse of the market, the going rate of houses in Kolkata for sale, and the best offer that you can extract from the seller at the time of negotiations. In addition, agents can provide insights and information that you may have missed during an independent inspection that may cost you dearly in the future.

Ignoring obvious problems

Every now and then buyers are faced with the option to buy houses in Kolkata at lucrative discounts that seem too good to be true. While buying a house in a distress sale can help you create a long-term real estate asset at a steep waiver from the existing going rate, often these homes feature structural problems that can cost you a lot of time and effort to fix. Hence, while shortlisting homes that have leaky ceilings or uneven flooring, make sure that you’re paying heed to all structural concerns in order to make an informed decision.

Paying the minimum down-payment

Availing home-loans at the time of buying houses for sale in Kolkata is a well-expected norm. However, most buyers opt to put down the minimum requisite as a down-payment and convert the remainder of the amount due into EMIs that are paid over the next 15-to-20 years. While this strategy does fetch multiple tax advantages, taking on a large financial debt can prove to be a burden in the long-run. If possible, you must always try to pay the largest possible down-payment without compromising on essential liquidity to avoid paying prohibitive amounts of money in interest payments.

Ignoring the investment aspect

While most of us buy a home in order to inhabit the premises with our family and loved ones, the investment aspect of residential real estate should not be ignored. While inspecting houses in Kolkata, you must also compare and base eventual purchase decisions on the prevailing rental yield and resale of the area. Compare growth numbers in rental income over a 10-year period with an annual escalation of 7-11% every year to understand the rent you could earn on your property if you let your premises out. A similar method of calculation can be used while exploring the resale value of properties in Kolkata.

Conclusion

The city of Kolkata is a wonderful place to live a balanced life at the intersection of commerce and culture. The city offers an exciting combination of the old-world heritage set securely in the advancements and infrastructure of the modern age. If you want to buy houses in Kolkata, you must be wary of certain legal and financial considerations that arise at the time of purchase. Being aware of these pitfalls will help you choose wisely and build a home that fulfills your life for a long time to come.

You can also check out our blog “Flats in Kolkata: A Buying Guide for Luxury, Premium, and Budgeted Buyers” and “What’s the Difference between Home and House” for your reference.

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