Owning a house in India is symbolic to being settled in life. Yes there is no relationship between being settled and owning a house but that, unfortunately is a common perception, which cannot be changed. Also every couple has a dream house in their mind, a house which they own and want to decorate it according to their own ideas and relish.
What are the prerequisites of buying a house? Nothing drastic, choose the location and the type of house you want to buy. Apply for home loan. Purchase the house that you plan to own. It is a simple three step process. But it is not as easy as it seems. There are multiple hurdles which need to be crossed before realizing the dream of owning a house.
Advertisements provided by the real estate companies and financial sectors about buying a house and getting a loan for purchasing a house look too good to be true. As per the advertisement an agent is waiting just for us and ready to serve us. But that is not the reality.
The first step of choosing the right locality and the house of your dream itself is a tedious process. Everything that is promised in the advertisement starts disappearing when you reach the location. The commonly used lines are you will be provided everything excepting these amenities and if you want to avail this facility you need to pay extra. So the whole concept of all inclusive itself is wrong. You cannot even go and sue the real estate company in the court of law as there are fine prints called conditions applied. So you start making compromises to suite your budget or agree to pay extra amount in order to get that dream house.
Next hurdle is the home loan. Depending upon a lot of factors (half of which are unknown to the common man) you are eligible for up to 80% of the cost of the house. But this will not include the registration cost of the house and the Tax obligation (in case your house costs more than 50 lakhs). So if you are lucky to be getting exactly 80% (which usually is not the case) then you will have to arrange for the rest of the amount plus the cost for the registration of the house.
But hold on, before that your eligibility will be checked. Your credit score will be checked. The credit score calculation is a different topic by itself and will need a separate discussion board. So we will not dwell into it as of not. So after all the important checks are made you will be told as to how much you are eligible for. It does not end here. Whether your house is ready to occupy or not the moment you avail the loan you are supposed to pay your EMI in timely manner. So if you book your house in March 2016 and you are supposed to get your house in April 2017 then for the next one year you will be paying your monthly EMI plus your house rent. And you need to pay your EMI in time (with the interest rate being fixed or floating depending upon the terms of your loans) or else your house will be seized by the bank for being a defaulter for a significant amount of time period.
The issues pointed out here are just the tip of the iceberg. That makes us to think as to how easy it is to be a house owner in India?