How to Sell Your House and Buy Another
Selling a House and buying another one is one of the most common things in any property market across the world. The troubles actually brew here if one doesn’t know the steps to do this right as we cannot expect every one to be pro at it. It is always advisable to take a reputed realtors advise on this and go with the process with an experienced hand.
There are many combinations here:
1. Selling a property in the same location and buying another larger one in the same location. This means you need to put in some more funds – which can be over and above 35 to 40% of the value.
For Example – 1 BHK in Andheri West is for around 1.25 CR, 2 BHK in the range of around 2 CR and 3 BHK can be around 3.00 CR, so you must know what is the approximate value for your home and what is your own contribution if you are looking to buy another one in the same location.
2. Selling a property in one location and buying it in another one
The pricing may again depend if you are upgrading to an expensive location than yours or upgrading to a size of the apartment.
3. If you are up upgrading to another location which is Premium than yours
Then you need to know what are the rates of the particular location, sizes of apartments there and other factors like how much is the difference and can you do that.
4. If you are looking to upgrade your property from for e.g. a 2 BHK to a 3 BHK.
Then again you need to again look if you want to buy a 3 BHK in the other location and what are the prices prevalent there and will your current house sale be able to fund you for the new larger home.
Incidental Charges are around 5 to 10% for buying a home.
5% Stamp Duty Flat
1% Vat – Not incase of Older Properties
3.71% Service Tax – In a construction linked house or an under construction property
30000 – Registration charges for any property
Apart from these if you buying in Re-sale, then Transfer Fees to the society etc come in play. So you need to know all the maths before you leap out and do this.
If you thought, the above is all over, then i would say, you have just begun.
1. You need to align possessions of both properties and have a back up plan in case you need to stay on rent for a few months some where. Often possession issues, drag you to take a wrong decision in buying a home.
2. Be sure and do not get into any grey areas with the buyer and sellers. As each one of you is dependent on a sale or a purchase so be very very clear and do not get frustrated with the end less delays.
3. Make a check list of things to do.
4. Know your taxation, make sure you are not running into short term capital gains when you are selling a property.
5. Please review where are the legal papers, if they are mortgaged, get clarity on the same.
6. Know local market practises, be sure of all things and plan well.
If you plan well, you will help another home owner move on time.
Do let us know if you need any other assistance in doing a double deal.