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5-Step Process to Evaluate a Locality before Buying a House

By Finserv MARKETS - Aug 21,2019
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5-Step Process to Evaluate a Locality before Buying a House

Most articles on this topic will scream, “Location, Location, Location” to stress the importance of where you are buying a home. Well, let us add to the number and with another two citations: “Location, Location” before we go on to guide you through a 5-step process to evaluate the location of your proposed purchase. Check these:

1. Geographical Location:

If you are going to invest hard- earned money or take a hefty home loan to buy one, make sure the climate suits you. Check for excessive weather conditions –drought, flooding, scorching heat or heavy rains and natural disasters like earthquake. Do not settle for a polluted place full of vehicular traffic just because it is in the city or a toxic-fumes ridden industrial area on the outskirts because you are getting the best home loan rates for a property.

Finserv MARKETS facilitates personal loans that come with a host of benefits like flexible repayment tenures, zero collaterals and no foreclosure charges.

There is a minimum value of a property to avail finance too, and it is linked to the city you live in. For example:

  • Rs 40 lakh for Mumbai and Delhi, excluding NCR.

  • Rs 30 lakh for Bangalore, Pune, Hyderabad, Chennai, Thane, Navi Mumbai, NCR –Faridabad, Gurgaon, Ghaziabad, Noida and Greater Noida.

  • Rs 20 lakh for Kolkata, Ahmedabad, Chandigarh, Cochin, Coimbatore, Indore, Jaipur, Nagpur, Surat, Baroda, Nashik and Vijayawada.

  • Rs 15 lakh for Aurangabad, Vizag and Lucknow.

2. Friendly Neighbourhood:

The place should suit your lifestyle, values and tastes. A noisy mall, a crowded place of worship or a busy community hall may bring on frustrations. Your neighbours may be from different socio-economic backgrounds, political thought, education levels and professions. Ensure accessibility to markets, municipal serviced locations with cleaning, garbage disposal and drinking water supply.

  • Above all, if you are planning to take a home loan, make sure you get the best home loan rates and qualify for the loan amount, which is determined by a minimum level of salary, which determines your credit-worthiness or capability to repay the loan. Minimum salary is linked to the city of residence. For example:

  • Rs 30,000 for New Delhi, Gurugram, Faridabad, Greater Noida, Noida, Ghaziabad, Mumbai, Thane and Navi Mumbai.

  • Rs 25,000 for Bangalore, Pune, Hyderabad, Chennai, Ahmedabad, Kolkata, Jaipur, Chandigarh, Coimbatore, Nagpur, Surat, Baroda, Indore, Vizag, Nashik, Aurangabad

  • and Lucknow.

3. Schooling and Social Infrastructure:

Whether the locality has good schools is crucial even if you do not have kids, as good schools always increase the value of real estate investment. Parks, gardens, hospitals, banks and avenues for leisure activities, including art, culture, sports and entertainment are important. Compare different properties, localities, projects and builders not to mention. Factor in the proximity of relatives and friends.

  • Check out if it makes better sense to involve an immediate member of the family as a co-applicant for a home loan if it is required to upgrade to a good locality.

4. Proximity to Work:

 Commuting long hours is not feasible on a daily basis and will adversely impact career and family life.

  • Fortunately, if you take a personal loan facilitated by Finserv MARKETS you don’t have to go physically to pay the EMI at the bank. Electronic Clearing Service is preferred and if not available, post-dated cheques will do.

5. Safety:

 Crime statistics speak volumes, but do visit the place both in daylight and at night to see if you “feel” safe too. Lighting, people on the streets, stray dogs, beggars and vehicle movement provide an insight.

  • If you are availing a loan, experts from the bank will also evaluate the project by paying a visit to the property. Further, it may be better to stick to the Approved Project Facility list of the lender, for speedy disbursals, if nothing else.

Happy house hunting and home loan search. Just do not let prejudices take an upper hand and embrace a liberal attitude to mesh in with society when you finalize a locality to buy a home. Begin your search at Finserv MARKETS, which hosts products from Bajaj Finserv, an industry-leading lender that can provide an impressive array of options for you.

You can also read about ways to reduce home loan EMI.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522