Whoever embarks on a journey to buy a flat in Dhaka knows the overwhelming number of processes. Navigating the market, property visits, paperwork, and many other steps are related to purchasing a property. For first-time buyers, it might be more challenging to get a grasp of all the steps. Investing in a property is a significant decision, and you should only put your money into something you know about. That is why we always recommend having at least some ideas regarding the real estate market and the steps of buying. This article gathers the most essential steps to buying your first apartment in Dhaka to provide an overall concept to first-time buyers.

Fix a Budget

Browsing for your new home is exciting. But set a boundary on your expectations by defining a budget. Fixing a budget helps you select the apartment based on your financial limit. You should already know about your current financial situation and how much you can spend to buy a flat in Dhaka. However, fixing a budget includes more than just the price of the apartment. It also has additional costs such as taxes, legal fees, renovation, agent commission, etc.

Here are the key financial aspects you should know:

Debt to Income Ratio (DTI)

If you plan to take a home loan, your debt-to-income ratio (DTI) is crucial. You can calculate this ratio by dividing your monthly total debt by your gross monthly income. For example, if your overall monthly bills and debt payment is 30,000 TK, and your gross income is 70,000 TK, the DTI comes to 43%. The lower the DTI, the more likely you are in a better financial situation, allowing you to take loans from banks and organizations. Keeping the DTI ratio under or around 35% is recommended. However, the percentage may vary according to different lenders.

Down Payment

A down payment is a portion of the total property price you must pay upfront when buying an apartment in Dhaka. Your home loan does not cover the down payment, and it will be one of the biggest payments from your side. Suppose you can pay a larger down payment. In that case, you will need to borrow less money from the lender, resulting in lower interest and monthly payments.

Closing Cost

Closing costs are the additional expenses and fees you pay to buy a flat in Dhaka. This cost is separate from the purchase price of the apartment, and it is required to finalize the purchase process. Common closing costs may include lender fees, taxes, homeowner’s fees, recording fees, and other additional costs.

Browse for Homes

Once you figure out your current financial situation and DTI ratio, you have a clearer vision of what you can afford. Now, you can start browsing for apartments and filter out the apartments based on your budget. This approach lets you select and buy a flat in Dhaka much faster. However, besides your budget, you should consider some critical factors before choosing your home. Considering factors such as location, amenities, developments, and resale potential while shortlisting is a wise approach. Your apartment is a significant investment and could be your address for the foreseeable future. Carefully decide what you and your family require, and search your home accordingly. Plenty of online platforms, social media groups, and pages offer different types of properties in Dhaka.

Get Assistance

Fixing your budget and shortlisting apartments are the initial tasks. The lengthy and complex process of buying an apartment in Dhaka is yet to come. There are plenty of formalities and procedures to be done throughout the process. If you are not an experienced buyer, we recommend getting assistance from a trusted real estate agent. An agent or brokerage service has the market knowledge, knows property prices, and provides the necessary property purchasing services. By working with an agent, you will also get access to exclusive apartment listings, making it easier to buy a flat in Dhaka according to your specific needs. Moreover, an agent verifies the paperwork and completes all the formalities to simplify the process. Ultimately, working with an agent ensures you get the best possible deal in the simplest way possible.

Shortlist Properties

While searching for the perfect home for you and your loved ones, you may come across an apartment that perfectly matches your requirements. In that case, make sure that this is one of many apartments you put all your effort into. Focusing on one property can make you overlook other options that fit your budget and needs better. Moreover, apartments look polished in the pictures, but adequately inspecting the property reveals all the flaws. To avoid this problem, select several properties and list the properties that fit your requirements the most. This approach widens your options, enabling you to have a backup even if one of the properties in the list is cancelled.

Property Inspection

Previously owned properties require a proper inspection of the property. There are plenty of instances where people buy a flat in Dhaka that looks well-maintained and polished. However, they find major problems in the infrastructure, causing them to spend a lot of money to fix it. To avoid this problem, thoroughly inspect the property you are interested in. Ask your agent for a professional home inspector to assess the apartment’s electrical, water, plumbing, interior, exterior and other vital infrastructure. Based on the condition of the infrastructure, you can ask the owner to make necessary repairs or negotiate the price.

Legal Due Diligence

The legal aspect is the most crucial part of any property transaction. It is essential because a simple overlook in the legal verification can potentially create significant issues in the future. To stay safe in the legal part, you must take the help of a professional. The first and foremost thing to check is the title deed of the apartment. The title deed confirms the apartment’s owner and if the owner has the right to sell it. In some cases, properties are owned by multiple owners. In that case, the deal must be done with both owners.

Negotiate the Price

Start negotiating the price only after thoroughly verifying all the legal documents and inspecting the property. It is best to get assistance from your real estate agent to negotiate the price on your behalf since they have the expertise and knowledge. They can leverage the experience to get the best deal. However, if you don’t have a real estate agent, research similar properties on the market and get an idea about the price. Then, you can negotiate based on the condition of the property. Remember, you might encounter sellers who want to avoid negotiating the price. If you find the price too high, feel free to walk away and look for other options.

Close the Deal

Once the essential steps are completed, closing the deal is the final and crucial step. An important step before closing the deal is to conduct a final walk-through. This ensures that everything is in the agreed-upon condition and that any repair or negotiated changes have been made. Work with your agent to gather all the necessary documents. You must also bring the funds for down payments and closing costs. A lot of documents need to be signed during the closing process. Review each document carefully and ask for clarification if you need help understanding a particular term or see any changes made to the already negotiated terms. After the final signing, some additional paperwork may need to be completed by your agent. Apart from other small details, the official process should be complete, and you should be the proud owner of your new apartment in Dhaka.
The decision to buy a flat in Dhaka comes with a lot of processes and formalities. Some of them are essential steps that require professional guidance and navigation. Other essential steps, like property selection and financial decisions, depend on you. A good understanding of these essential steps ensures you can make an informed decision on your new home. It also makes the whole process easier and more convenient. If you need a trusted and experienced agent to assist you throughout the whole process of buying a house, Concord Property Solutions is your reliable partner.

Frequently Asked Questions (FAQ)

How long does it take to buy a flat in Dhaka?

It depends on several factors. Usually, it takes around weeks to months to complete the whole process of purchasing an apartment in Dhaka.

Are there any government taxes that apply to property purchases?

Yes. Government taxes apply to property purchases in Dhaka. However, the percentage can vary based on the location.

How can I protect myself from any future legal dispute?

Engage in thorough legal verification, work with reputable professionals, and ensure that all necessary documentation is accurate to reduce the risk of future disputes.

What is the process for acquiring a home loan in Dhaka?

The process typically involves applying for a home loan to banks or financial institutions. Alternatively, you can apply for a home loan through Concord Property Solutions through our partners.

Essential Steps to Buy a Flat in Dhaka