Locked-up for the next 10 years...
Yeah, its true. From today, we are officially locked up to pay 30% of my salary for the next 10years to Axis Bank. On the brighter side, we officially own a piece of land in Bangalore from today. Its 30x40 in dimension and is located at the outskirts of south bangalore near to NICE road[Banshankari 6th stage]. Off-late i was thinking of buying an apartment and almosted Zeroed on a 3BHK in Rammurthy Nagar and ended up running away from it, as its going to cost me a lot more than i can currently take. I cannot whole-heartedly say that my decision is right at this point of time, but i somehow feel that spending money on a piece of land is better that spending more money on a reasonable builder where the depreciation supercedes time. If you are planning to buy a piece of land, the following are the things that needs to be considered:
0. Suppose you want to buy a piece of land at a particular place say, Banashankari 3rd block. Go and meet so many Agents and ask them the price of each sqfeet that is currently going on. Tell him that you are planning to buy and wanted to know only the prices. Do not go and see the plot along with the broker at that point of time. Once you get a reasonable idea of on-going price at that area, thats the time where you pick the least priced or reasonably priced and a decent Agent that you have met so-far and visit the plots that he has in store.
1. Always negotiate on the brokerage before you make any deal.
2. Always take 2 legal opinions irrespective of how good the sellers are.
3. Most private banks give 75% of the Agreement value and almost all public banks give 75-80% percent of registered value.
4. Always go for a minimum possible loan from the bank as the interest that you end up paying will be neutralizing the profit that you might make in the future.
5. Pay as much as possible in the first 2 years as most of the bank deduct very little from the principle amount in the first few years.
6. Always look for consistant names and addresses in the documents of the seller. For example in some documents a name like "satyavathi" might be written as "sathyavati or sathyavathi". To avoid confusions in the Demand Drafts that the bank has to prepare and on the final sale deed always confirm with the seller about the names and the bank account details.
