Property rates in India – Very High!
Standard of Living – Very High!
The Income of Indians – Not very high!
This is the age-old problem that every Indian goes through when planning to buy a house/property. Opting for a home loan over 20+ years is the only solution. But would you want to spend more than half of your working life paying a home loan?
If the answer is NO, then we have some exciting news that will surely cheer you up. You can now purchase auction property from Banks in India.
What’s an auction property?
Many customers that take a home loan in India cannot repay it. In such a scenario, Banks will cease and repossess the property as their own. This is done to recover the remaining loan amount. Banks hold auctions for such properties and sell them off for a discounted value between 5-30%*.
Why should I buy an auction property?
You should buy an auction property if your budget is low and you want to take a home loan for less than 15 years.
What are the top 4 factors you must check when planning to buy a house through Bank Auctions?
There are many factors one must check when planning to buy a house through Bank auctions. These factors are very important. Hence we request you to sort all of these factors and then only go-ahead to purchase the auction property.
- Who holds the legal title to the property?
Firstly, just because the Banks took possession of the property does not mean that they will have the rights over the property. You must check
- ■ If the property has been created as per the approved plan and
- ■ If there are any disputes over the property.
In such a scenario, it’s best to take legal help from a lawyer so you can sort all these issues before you buy the auction property.
- ■ Pending dues and Outstanding loans:
The previous owner might have mortgaged the property with other Banks and took a loan. Hence you will have to check with the municipality, tax authorities, and other agencies to find if there are outstanding loans.
Also, once you buy the property all pending dues like stamp duty claims, society dues, property tax, maintenance fees, and electricity bills will become your headache. Hence you will have to sort this out too. So what you can do is meet with the society and find out about all pending dues.
- ■ Repairs needed in property:
Properties being auctioned by the Bank are in the current condition. This means the Bank will not repair and furnish the property for you. Any repairs, leakages in the property become your issues. All these expenses will have to be borne by you. Hence inspect the property and take the help of a civil engineer to understand if the property is well maintained.
These are 3 major factors that you must check because all these costs will be added to your purchase cost of the property. The discounted price at the auction will not make sense if you have to spend money on pending dues and repairs. Hence please bear these 3 factors in mind so you can own your dream house at the lowest cost.
If you wish to get the lowest interest rates Home loans in India, visit our website and get the best deals.