Buying a home in India means purchasing a residential property as your primary dwelling. Some key aspects of home buying in India include:

• Mortgages are common: Most homebuyers in India finance their purchase through mortgage loans from banks and housing finance companies. Interest rates and lending terms have become more favorable in recent years with rising competition. Mortgages allow buyers to pay off the cost of their home over 15-30 years rather than paying the full price upfront.



• Property taxes apply: All residential property owners in India must pay an annual property tax to their municipal government based on the assessed value of the home. Property taxes funds local infrastructure and services. Failure to pay can result in penalties, so buyers must budget for this ongoing cost.



• Registration charges: When a home is purchased in India, you must pay a stamp duty or registration fee of 5-10% of the sale price to register the property in your name. This is a one-time charge to legally record and finalize the transaction but increases the total cost of purchase.



• Maintenance fees: Homeowners associations or housing societies collect monthly maintenance fees from property owners to cover costs like building repair, security, gardening, power backup, and clubhouse facilities. Buyers should verify HOA details like fees, reserve funds, and restrictions before purchasing a property.



• Capital gains taxes: If you sell your primary residence in India at a profit in the future, any gains made are subject to long-term capital gains tax of up to 20% depending on the type of property. You are also subject to tax on any rental income if you do not occupy the home yourself. Consult tax rules carefully to determine your obligations.



• Appreciation potential: Over time, the value of residential properties in India have generally experienced appreciation driven by factors like increasing demand from a growing population, higher incomes, improved amenities, and infrastructure development. However, home values are also volatile and subject to decline based on local market factors including oversupply, reduced speculator demand, and broader economic issues.



• Liability risks: As a homeowner in India, you assume liability for the property and any events that occur on the premises. Be sure to maintain proper insurance to cover risks like flooding, earthquakes, theft, and other damage or loss to mitigate liability exposure regarding the value of the home as well as potential harm to visitors.

So in summary, purchasing a primary residence in India allows you to build equity and potentially benefit from appreciation over the long run. But it also means taking responsibility for ongoing costs and risks associated with homeownership. By understanding the various tax, finance and legal obligations involved before you buy, you can make an informed decision about whether home purchasing in India matches your needs and financial situation. Homes can be rewarding but also require significant resources and long-term commitment.