Buying your first flat is a big step. On a busy corridor like Sarjapur Road, the choice can feel endless. Breaking it into steps keeps it calm and clear. This guide walks through each one, with simple ₹ examples you can redo with your own numbers.
1. Set a budget you can live with
Add your down payment, taxes and charges, then check the EMI. A common guide is to keep all EMIs below about 40% of take-home pay. If your home is ₹75 lakh with an 80% loan, you need ₹15 lakh plus GST, stamp duty and registration from savings.
Worked example (illustrative)
These figures are only to show the arithmetic. They are not a Reeva price or offer.
- Home value: ₹75,00,000.
- Loan at 80%: ₹60,00,000. Your share: ₹15,00,000.
- GST on an under-construction home at 5%: ₹3,75,000.
- Stamp duty and registration: check Karnataka's current rates. If, for illustration, they add up to 7%, that is ₹5,25,000.
- Legal check, loan processing, moving and basic furnishing: set aside, say, ₹1,50,000.
- Cash needed from savings: about ₹25,50,000.
Now the EMI. A ₹60 lakh loan at 8.5% a year for 20 years works out to about ₹52,069 a month. Using the 40% guide, your total take-home pay (alone or with a co-applicant) should be at least ₹52,069 ÷ 0.4, about ₹1,30,000 a month, and that is before any car loan or other EMI.
Many buyers only budget for the down payment and are surprised by the other ₹10 lakh. Writing out all the lines like this is the single most useful thing you can do.
2. Get a loan pre-approval
A bank's in-principle approval tells you how much you can borrow. It also makes you a serious buyer when you talk to builders. Use our EMI calculator to test rates and tenures first.
Try at least two lenders. Small differences add up: at 9% instead of 8.5%, the same ₹60 lakh loan over 20 years costs about ₹53,984 a month, roughly ₹1,900 more every month for 240 months.
The RBI sets a ceiling on how much of a home's value a bank can lend. For loans above ₹30 lakh and up to ₹75 lakh it is 80%, and above ₹75 lakh it is 75%. That is why the down payment is not optional.
3. Shortlist by RERA, not by ads
Only consider registered projects. Search each RERA number on rera.karnataka.gov.in and read what was filed.
What to look at on the RERA page:
- The promoter's name, which should match the name on your agreement.
- The approvals uploaded, such as the building plan.
- The completion date the builder declared.
- Quarterly progress updates.
- Any complaints already filed.
4. Visit the site and the area
- Do the commute at peak time.
- Look at the approach road and nearby schools.
- Ask about the water source and power backup.
- Visit once on a weekday and once on a weekend.
- If possible, visit after heavy rain to see how the roads drain.
Sarjapur Road is long, and each stretch feels different. Map your office, your child's school and a hospital, and check the real travel time to each.
5. Check the papers with a lawyer
Title deeds, encumbrance certificate, plan approval and the draft agreement for sale. Your bank's legal team will also check them, but your own lawyer works for you.
The bank checks whether the property is good security for its loan. Your lawyer checks whether the deal is good for you, including clauses about delay, cancellation and refunds. Those are different questions.
6. Book and sign
Pay no more than 10% before the agreement for sale is registered (Section 13 of the RERA Act). Confirm the carpet area, payment stages and handover terms in the agreement.
Carpet area is defined in Section 2(k) of the RERA Act as the usable floor area inside your walls, excluding external walls, service shafts, balconies and open terraces. Ask for every price to be explained against the carpet area, so you compare like with like.
7. Budget for GST and registration
On an under-construction home, GST is 5% (2.5% CGST + 2.5% SGST), or 1% if it qualifies as affordable. Stamp duty and registration follow Karnataka's current schedule.
In the example above, the ₹3,75,000 of GST splits into ₹1,87,500 CGST and ₹1,87,500 SGST. No GST applies on a ready home sold after the completion certificate is issued. Ask the builder to show GST as a separate line on every demand letter.
8. Track construction
Builders file quarterly updates on the RERA site. Compare them with what you see on visits.
If you pay on a construction-linked plan, each demand should match a stage that has actually been reached. A photo or a site visit before you pay is a reasonable request.
9. Take handover carefully
Walk through every room with a checklist. Note defects in writing. The builder must fix structural defects reported within five years of handover.
Under Section 14(3) of the RERA Act, that duty covers structural defects and defects in workmanship, quality or services, and the builder must fix them within 30 days, without charge.
Common mistakes on a first purchase
- Stretching the EMI to the limit. Leave room for school fees, a car, or a gap between jobs.
- Paying a large booking amount before the agreement is registered.
- Comparing prices on different area measures. Always ask for carpet area.
- Skipping your own lawyer because the bank approved the project.
- Not keeping an emergency fund. Six months of EMIs in a separate account is a sensible cushion.
- Choosing a longer tenure without checking the total. A ₹50 lakh loan at 8.5% costs about ₹43,391 a month over 20 years and about ₹40,261 over 25 years. The lower EMI looks easier, but you pay for five extra years.
A note on tax benefits
Under the old tax regime, interest on a loan for a self-occupied home can be deducted up to ₹2,00,000 a year under Section 24(b), and principal repayment counts within the Section 80C limit of ₹1,50,000, shared with other items. Under the new regime, these deductions are not available for a self-occupied home. Work out your tax under both regimes before assuming a saving, and never buy a bigger home only for a tax benefit.
If you file under the old regime and pay ₹4,50,000 of interest in a year, only ₹2,00,000 of it is deductible under Section 24(b). The rest gives no tax benefit for a self-occupied home.
Your one-page checklist
- Total cash needed, written line by line.
- EMI below about 40% of take-home pay.
- In-principle loan approval from at least two lenders.
- RERA number checked online.
- Commute tested at rush hour.
- Papers reviewed by your own lawyer.
- No more than 10% paid before a registered agreement.
- Carpet area stated in the agreement.
- GST and stamp duty budgeted.
- Snag list ready for handover day.
A low-density option to consider
If you prefer a quieter community, The Shalott Marque at S Medihalli on Sarjapur–Attibele Road has 54 homes on 0.75 acres, in 2 and 3 BHK. See it on our project page. Price is on request. Call +91 91838 91839.
Reeva Properties is backed by SUYUG Infra: 4 Mn sq ft delivered, 1.5 Mn sq ft under development. You can read more about the parent builder at suyug.com.