6 Tips For Women Investing In Residential Property

Buying a residential property is just not a man's thing any more. With Indian women contributing equally to the decision making process, almost 30 per cent of home buyers in India are women, including both married and single. This number, which is now growing at a fast pace now, is driven by the growing number of educated and working women. Interestingly, a lot of women are now buying property for investment purpose too.

So all you ladies planning to buy a residential property, for either moving in or investment, here are the steps to consider before you sign the deal.

• Asses the need for a property
  Before you plan to invest in property, know your purpose. Are you buying a residential property to reside in or for investment? Or, are you buying a property for tax purpose? If its for investment, ensure you have a timeline in place. Always research about the prices of property in the area you would want to buy in and see if it fits your finances. Also, decide if you would want to buy a 2BHK apartment or a luxury apartment and whether it should be a resale apartment or a new one.

• Re-arrange your finances
  Before you zero down on location and property, know your financial situation and set the down payment amount and EMIs. Ensure that EMI outflow should not be more than 30-35 per cent of your monthly income. Make all the necessary investments including insurance and pension, and keep a contingency fund aside before you go ahead with a real estate investment.
  Often women raise money from spouses or other family members for the upfront payment. So, if you are raising money from the family members, take it as a loan and not as a gift, as gifts can attract tax.

• Look for the right property agent
  Making the right and fair decision can be made only when you hire the right real estate agent. Certain rogue agents can be intimidating and devious especially to women. Research well and consult family and friends before you employ the services of the agent. Be well researched about property rates and ensure you convey it to the agents too, so that they can't mislead you.

• Know concessions you can get
  Women home buyers are entitled to certain concession. You can pay a lower amount of stamp duty in some states. This savings in stamp duty can go a long way in your return on investment (RoI). So, if you are purchasing a home as an investment, get a property in Delhi or Haryana. These states have at least two per cent lower stamp duty for women as compared to others.
  Women can also get home loans at a cheaper interest rate as compared to men. A few PSU banks including the State Bank of India have these offers. Know and study all the concessions available before you make the purchase.

• Stick to your budget
  It is easy to get swayed if you like certain property but real estate investment is a pure financial decision. So be sure that you stick to your budget, which you had set before you began home searching. Let your agent know your budget and don't visit properties that are beyond your budget.

• Choose the right builder and bargain
  Choose the right builder by studying the credibility of all the developers in the market. Though there can be certain real estate companies that might mislead you about project timelines, so add a year or two to the date of delivery, depending on the stage of construction. Make sure you bargain for discounts as due to unsold inventory, builders come up with offers and schemes.

(Katya Naidu has been working as a business journalist for the last nine years, and has covered beats across banking, pharma, healthcare, telecom, technology, power, infrastructure, shipping and commodities)