For most people, buying a home is the biggest financial decision of their lives. But in India, it can also be one of the riskiest. Property scams are far from rare and they're only getting smarter.
From bogus listings to shady paperwork, there's no shortage of tricks in the market. Some buyers have paid advance money for homes that were never built. Others find out too late that the flat they bought is legally disputed or doesn't have the clearances it needs. The cost of rushing in is steep financially and emotionally. Here is a guide on how to plan financially for buying a house.
Paper Trails That Disappear
In many cases, the fraud starts with paperwork that looks legitimate but isn't. Sellers may present fake title deeds or claim approvals that don't exist. "A lot of buyers still skip basic due diligence. That's where the trouble begins," said a Mumbai-based property lawyer who's handled multiple fraud cases.
Before you commit to anything, even a token payment, you must check all clearances. That means land use permissions, title deeds, RERA registration, and occupancy certificates. If something feels off, walk away. Also, never rely on verbal assurances. Get every promise in writing, whether it's about delivery timelines, amenities, or pricing.
One more must-do: get a legal title search. This will flag disputes, mortgages, or hidden heirs that could throw your purchase into limbo.
Under-Construction? Under Threat
Many buyers are tempted by lower prices on under-construction properties. However, delays are common, and in some cases, the project never gets completed. RERA registration is a basic safeguard, but even that's not a full guarantee. Track the project's status and history online, and talk to other buyers if you can.
Watch Out for Common Scams
Scams aside, plenty of buyers sabotage themselves by stepping in before their finances are in shape. Some don't understand how much they'll actually need. Others assume they can "figure it out" later. That's a mistake.
Start by checking your credit score. A strong score can mean better loan rates, and a weak one can stall your entire plan. If your number is low, clear debts, pay bills on time, and keep credit card usage under control.
Next, map your budget. A down payment usually means 20 per cent of the property's value, but that's just the start. Stamp duty, registration fees, legal charges, broker fees, and GST on under-construction properties all add up. Maintenance deposits and society charges are also involved, especially in new developments. Some of these can run into lakhs, and many buyers are blindsided post-possession.
Plan Savings
Build a savings plan early. Set aside money each month and stick to it. Look for ways to trim spending or find extra income through freelance work or side projects. The more you save now, the less you'll need to borrow, and the lower your monthly EMI burden will be.
Also, invest smartly. SIPs, FDs, or recurring deposits can help your money grow safely while you prepare for the purchase. Avoid piling on new loans or running up your credit card bills in the meantime; lenders don't look kindly on high debt-to-income ratios.
Don't forget to create an emergency fund, too. It should cover at least three to six months of expenses, including your mortgage. One layoff, one hospital bill, and you're in the red. Plan for that, not just your dream sofa.
Choose Lender Wisely
Too many buyers go with the first lender that gives them the green light. Take the time to compare banks' interest rates, processing fees, and prepayment rules. Even a 0.5% difference in rate can cost you lakhs over the loan term. Decide whether a fixed or floating rate works better for you, depending on your income stability and market outlook.
Buying a house isn't just a transaction it's a long-term relationship with your finances. Don't be rushed by agents or FOMO. Ask questions. Read everything. Run the numbers twice. Because once you sign, there's no looking back.
Being alert and financially ready isn't just smart, it's survival. In a market full of traps, it's the only way to come out with a key in hand, not regrets.
