Actually, these two are highly disparate questions. The big advantage with renting is that you will be free of most of the maintenance costs and responsibilities that come with owning a home. But by renting, you lose the chance to build equity, take advantage of tax benefits and insulate yourself from rent increases. Also, you may not have the right to decorate as you like without permission and will always be at the mercy of the home owner when it comes to terminating the rental lease. As you can see, owning a home has many advantages. Every time you make an EMI payment you are building equity and that becomes an investment. By owning a home, you are also entitled to tax breaks that will help you in dealing with your new financial responsibilities such as – insurance, real estate taxes and maintenance which can be large and substantial. But when compared to the freedom, stability and the security of owning your own home, the decision to buy a home becomes a worthy decision.

The Bank or lending institution will consider your debt-to-income ratio which is basically a comparison of your pre-taxable income with housing and non-housing expenses. Non housing expenses will include long term ongoing debts such as car or other legal debts such alimony or child support. The lender will also consider your ability to pay cash for down payment and closing costs, your Credit Score etc. which will all go towards determining the maximum loan amount that can be made available to you.

Apart from comparing the homes that you are in the process of shortlisting with your ideal minimum criteria and wish lists, you should also consider the following check points:

• Is there enough room for the present and the future as your family grows?

• Are there enough bedrooms and bathrooms?

• Is the home pleasant, airy and has ample natural light?

• Do the pre-installed mechanical and electronics systems and appliances work?

• Do you like the floor plan?

• Will your furniture fit in the space? Is there enough storage space for all your needs?

• Imagine the home in day and night, in good and bad weather. Will you feel happy and secure inside round the year?

• Are the property related legal documents clean and clear?

• Have you done due diligence on the property?

Carefully consider each and every home that you inspect and ask your real estate agent to highlight the pros and cons of each home from a professional and legal standpoint.

That really depends from person to person. Ideally you must visit as many homes as it takes to help you and your family feel satisfied to choose the one you finally settle upon. On an average, buyers in the market generally see an average of 15 homes before choosing one. Just be sure to clearly communicate with your real estate agent about your preferences, likes and dislikes so that precise homes matching your preferences can be shown to you thereby saving time and effort on both sides.

Professional Home Inspection is a relatively recent concept in India and Bricks n Spaces also provides professional home inspectors to our clients once they shortlist a home that they want to buy. A home inspector basically checks the safety parameters of the house focusing especially on the structure, construction and mechanical and electronic systems of the house and will make you aware of repairs needed for faulty installation or construction. The inspector will not evaluate whether or not you are getting a fair value on the house. The inspector only checks and will give an estimate on the repairing cost involved for:

• The Electrical system

• Plumbing & Waste Disposal

• Water Heater

• Insulation & Ventilation

• Water source & quality

• Potential Pest Problem

• The Foundation

• Doors, Windows, Ceilings, Walls, Floors & Roof

• Hi Tech Security Systems, Home Automation Systems Promised by The Developer (if any)

Remember that is a good idea to have a thorough inspection of the house that you intend to buy before you sign on the offer documents because once the deal is closed you have bought the house ‘as is’. If you are in a hurry, you must include an ‘inspection’ clause in the offer during the negotiation phase. An inspection clause will give you an ‘exit’ route if it is discovered after buying the house that the developer or previous owner has reneged on the promises made before buying. The clause will give you the crucial ability to renegotiate the purchase price if serious problems are found which require expensive repairs. An inspection clause can also specify that the seller or developer must fix the problem(s) before you buy the house. Though not mandatory, as the future owner of the house you should be present when during the inspection of the house in order to be better informed about everything and to confirm the discrepancies found if any.

Once you have zoned in on a particular home and decided that this it, our real estate Expert will help you in making an offer to the Developer / Seller which will include the following information:

• Complete Legal description of the property

• Amount of Earnest Money to be deposited

• Down Payment and financing details

• Proposed Moving-in Date

• Price you are offering

• Proposed Closing Date

• Duration of Time the offer is valid

• Details of the Deal

Do remember that a successful sale depends on the negotiation of a satisfactory contract with the seller and is not wholly dependent on only your own offer.

To calculate your initial offer, you can take guidance from our real estate expert but of course it is your own instinct that will finally decide what you think is a fair price for the home that you plan to own. To calculate the offer price, you must keep several factors in mind:

• The price that homes like yours typically sell for in that area

• The condition of the home

• How long the home has been on the market

• Financing terms

• Seller’s Situation

This is also a good time to hire a due diligence expert / private investigator who can probe all financial and legal matters pertaining to the title and ownership rights of the property and also find out whether the home has any ongoing legal dispute or whether the developer has flouted any environmental or legal policy which could embroil the property in a future legal problem. By the time you are ready to make an offer you must have a good idea of what the home is worth and what you can afford to pay for it. Also, a bit of give-and-take negotiation is fair game and is common when buying a home. The buyers and seller usually go back and forth until they can agree on a final price.

Earnest Money is the money that is put down to show your seriousness about buying a home. It must be large enough to indicate good faith and usually hovers around 1 – 5 % of the purchase price. If your offer is accepted by the seller, then the earnest money becomes part of your down payment or closing costs. If the offer is rejected then the money is returned to you. If you back out of a deal, you will have to forfeit the entire amount.

The following are our terms and conditions for commission or brokerage fees:
(a) Where we act on behalf of both the Buyer and the Seller, commission at the rate of 2 % shall be paid to us by each party.
(b) Where we act only for the buyer or the seller, commission @ 2% shall be paid by the party for whom the member acts.
Before we start showing you homes, our real estate agent will discuss our terms and conditions with you and only if you are comfortable with our terms shall we proceed with the showing of properties.
The commission will have to be paid to us at the time of execution of the:
(a) Deed of Transfer or
(b) Agreement for sale or
(c) Completion of the transaction or
(d) Possession of the said property
Whichever is earlier. For more comprehensive information on our brokerage rates

COMMISSION TERMS & CONDITIONS

1. SALE / PURCHASE

Where there is any immovable property that is transferred through sale or exchange or by transfer of shares in a Co-operative Society or Company or any other Association of Persons or through any other agreement or arrangement, including Transfer of Development Rights (TDR), FSI or Long-Term Transfer of Development Rights, commission at the following rates on the total consideration amount (inclusive of loan amount) and /or deferred payments, if any, shall be paid to Bricks N Spaces as under:
(a) Where we act on behalf of both the Buyer and the Seller, commission at the rate of 2 % shall be paid to us by each party.
(b) Where we act only for the buyer or the seller, commission @ 2% shall be paid by the party for whom the member acts.

Any transaction that includes that of immovable property covers all transactions under the definition given in Section 269 U, Chapter XX-C of the Income Tax-Act, 1961, and also under Transfer of Property Act, 1882.

Note: In the event, a company is taken over, with the express or implied intention of acquiring the immovable property of the company, then 2% of the market value of the property will have to be paid by the Vendor and the Purchaser to the Bricks N Spaces as commission.

TERMS OF PAYMENT

2. GOODWILL

Commission @ 5% on the total consideration of the property, shall be due and payable to the member by both the Purchaser and the Seller on the Purchaser price / sale price of any premises, where goodwill and/or consideration is payable.

3. (A) LEASE / LEAVE & LICENSE / BUSINESS CENTRE

In the case of Lease / Leave and License / Business Centre Agreement, commission @ 2 months’ rent and 2% of the deposit amount, becomes due & payable, both by the Lessor / Licensor / Business Centre owner AND by the Lessee / Licensee / Occupier of the Business Centre; to the broker concerned. The above commission is payable irrespective of the period of Lease / Leave and Licensee / Business Centre agreement.
On renewal of Lease / Leave and License / Business Centre, 1 month’s rent and 1% of the deposit amount becomes due and payable both by Lessor / Licensor / Business Centre owner and Lessee / Licensee / Occupier of Business Centre, to the broker concerned on the escalated deposit and rent etc.

3. (B)DEPOSIT

The Lessor / Licensor / Business Centre owner and the Lessee / Licensee / Business Occupier shall individually pay to the broker concerned, 2% of the total deposit amount or advance rent, irrespective of the period of Lease / Leave and License / Business Centre. ON RENEWAL of Lease / Leave and License / Business Centre, irrespective of the renewal period, one percent of the deposit amount becomes due and payable BOTH, by the Lessor / Licensor / Business Centre owner and the Lessee / Licensee /Business Centre occupier, as brokerage, to the broker / brokers concerned.

3. (C)PAYING GUEST

Commission equivalent to two months compensation shall be payable by Paying Guest to the member and 1 month’s rent from the Owner.

4. MANAGEMENT OF PROPERTIES

Commission @ 10% shall become due and payable to the member of the total amount collected as rent / compensation in respect of properties managed by the members. For additional service rendered extra fees shall be due and payable to the member as may be mutually agreed upon.

5. (A)FRANCHISING

Commission at twice the minimum monthly income / guarantee or 2 months’ rent, whichever is higher is payable to the Agent.
In the event of anything mentioned in VI a) (i) is not applicable, 2% of market value of property shall be payable as commission by both Franchiser / and Franchisee.

5. (B)TIME SHARING

In the case of Time Sharing minimum of 10% or higher amount as mutually agreed upon, shall be payable as commission, by the Seller / Developer / Time Share Marketing / Management Company / Resort etc.

NOTE : Commission / Brokerage / Agency Fee / Services Charges / Any Other charges, under any name whatsoever paid to the member for services rendered SHALL NOT BE REFUNDABLE UNDER ANY CIRCUMSTANCES.