How to Plan Buying Your House: 21-Point Checklist of Cost, EMI, Maintenance and Upgrades (Beginner’s Guide)

Buying a house is not just a financial decision. It is an emotional milestone, a social statement, and often the single largest financial commitment an Indian family makes in its lifetime.

Over the last two decades of advising families, I have seen one consistent pattern: people prepare extensively for the EMI, but very few prepare for the life that begins after the EMI starts.

This article is written as a practical, first-person guide for anyone planning to buy their first (or even second) home in an Indian context. It is not about property selection or market timing. It is about preparing the real cost of homeownership, so that your dream house does not quietly become a financial stress.

Below is my 21-point home-buying checklist, built from real client conversations, mistakes I have seen families make, and frameworks I personally use while guiding clients.

1. Start With “Why This House?” — Not With EMI Eligibility

Whenever a couple walks into my office and starts with, “Taresh, the bank says we are eligible for ₹1.5 crore loan”, I pause the conversation.

Eligibility is not affordability.

Before anything else, ask:

• Why do you want to buy now?

• Is it for stability, investment, family expansion, or social pressure?

• Will this house still make sense 10 years from now?

I often recommend pausing here and reading my earlier thought on goal-based decision-making vs product-based decisions

👉 https://blog.tareshbhatia.com

2. Down Payment Is Not Just 20% — Budget 28–32%

Most people plan for:

• 20% down payment

But in reality, your upfront outflow is closer to 28–32% when you include:

• Stamp duty & registration

• Brokerage

• Legal checks

• Interiors (even basic ones)

I have seen families drain emergency funds unknowingly at this stage. The house looks ready, but liquidity silently disappears.

3. Stamp Duty & Registration: The First Shock

Stamp duty varies across states and cities, but in most metros:

• 5%–7% stamp duty

• 1% registration

On a ₹1.5 crore property, this alone can mean ₹9–12 lakh — payable upfront.

This is where I remind clients of a simple rule:

“Never fund stamp duty from credit cards or personal loans.”

If this cost feels uncomfortable, the house is already stretching you.

4. Legal Due Diligence: Cheap Is Expensive

Skipping a proper legal check is one of the costliest mistakes I see.

Budget for:

• Title verification

• Builder approvals

• Occupancy certificates

• Society documents (for resale)

This is not an expense. This is risk insurance.

I have earlier written about how paperwork saves families from future disputes

👉 https://blog.tareshbhatia.com

5. Home Loan EMI: Design It Around Life, Not Bank Tenure

Banks may offer:

• 20–30 year tenures

But your EMI should be planned around:

• Job volatility

• Career transitions

• Children’s education timelines

• Retirement age

I personally encourage:

• EMI ≤ 30–35% of stable monthly income

• Flexibility for prepayments, not EMI stretching

6. Floating Rates: Respect the Uncertainty

Indian home loans are floating. Rates will move.

When rates rise:

• EMIs increase or

• Tenure silently extends

I advise clients to mentally stress-test their EMI at +2% interest before signing the loan agreement.

If that number scares you, pause.

7. Prepayment Strategy: Plan It on Day One

Prepayment should not be accidental.

Ask yourself:

• Will bonuses go into lifestyle or loan?

• Will SIPs continue alongside EMI?

• Do you want faster freedom or longer liquidity?

I often create parallel plans: SIPs + periodic prepayments — not one at the cost of the other.

8. Home Insurance: The Most Ignored Protection

Banks push loan insurance. Many buyers decline or blindly accept.

I recommend:

• Separate term insurance equal to loan amount

• Home structure insurance (fire, earthquake, flood)

This ensures:

• Family safety

• Asset protection

• No forced product bundling

9. Maintenance Charges: The Monthly Leak

This is where reality bites after possession.

Monthly maintenance can range from:

• ₹3–6 per sq. ft. in apartments

• Higher for amenities-heavy societies

For many families, this equals another small EMI.

Always ask:

• Current maintenance

• Planned escalations

• Sinking fund structure

10. Property Tax: Small Amount, Annual Surprise

Property tax is often ignored during planning.

Though not huge, it is:

• Recurring

• Mandatory

• Non-negotiable

Budget it annually, not as an afterthought.

11. Utilities: The Invisible Monthly Cost

Electricity, water, gas, internet, DTH — they all rise after you move into a bigger home.

I have seen utility bills double silently post-possession.

Your lifestyle expands with space. Accept it upfront.

12. Interiors: Where Budgets Quietly Break

Clients often say:

“We will do basic interiors now.”

In practice:

• Modular kitchen

• Wardrobes

• Lighting

• Curtains

• Appliances

The “basic” quickly becomes ₹8–15 lakh.

Plan interiors as a separate goal, not leftover spending.

13. Upgrades & Customisation: Ongoing, Not One-Time

Homes evolve with life:

• Children grow

• Parents move in

• Work-from-home needs change

Set aside an annual home upgrade fund instead of scrambling later.

14. Society Sinking Fund & Special Levies

Many societies collect:

• Sinking fund

• Repair corpus

• Special one-time levies

These are not optional. Ask upfront:

• How much?

• How often?

• For what purpose?

15. Resale & Liquidity Reality

Homes are illiquid assets.

Ask yourself:

• If needed, can this be sold in 6 months?

• Will demand exist at your price?

• How location-dependent is resale?

This matters even if you “never plan to sell”.

16. Tax Benefits: Don’t Overestimate Them

Tax benefits help, but they should never justify overstretching.

Tax rules change. EMIs don’t.

Plan affordability before tax benefits, not after.

17. Emergency Fund: Must Exist After Buying

One of my non-negotiables:

“You should still have 6–9 months of expenses as emergency fund after buying the house.”

If your emergency fund is gone, the house owns you — not the other way around.

18. Investments Must Continue

Stopping all SIPs for EMI is dangerous.

Homes provide stability. Investments provide freedom.

Even a modest SIP continuation maintains long-term balance.

19. Retirement Planning: The Silent Casualty

I see this mistake too often:

• EMI planned well

• Retirement ignored

Your house should not delay your retirement.

I strongly recommend revisiting retirement projections once the EMI starts

👉 https://blog.tareshbhatia.com

20. Joint Ownership & Documentation Clarity

Ensure:

• Clear ownership ratios

• Nominees updated

• Will planning initiated

Homes complicate inheritance if ignored.

This is where estate planning begins for most families.

21. Emotional Readiness: The Final Checklist

Ask yourself honestly:

• Can we live with a fixed EMI for 15–20 years?

• Are we aligned as a family on priorities?

• Will this home bring peace or pressure?

A well-planned home brings confidence. A rushed one brings regret.

My Closing Thought

A house is not just walls and ceilings. It is a long-term financial relationship.

When planned well, it becomes a foundation for growth. When planned poorly, it quietly drains freedom.

If you are planning to buy a home, pause, plan, and prepare — beyond the EMI.

That, in my experience, is the difference between owning a house and enjoying it.

About the Author

CFP® Taresh Bhatia

CFP

Founder — The Richness Academy

Guiding Indian families towards clarity, confidence and control over their financial lives.

Disclaimer: The views expressed are for educational purposes only and do not constitute financial, investment, tax, or legal advice. Please consult qualified professionals before making decisions. Mutual fund investments are subject to market risks.

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