It is a major decision for everyone. So it’s imperative that the decision to buy property is well informed and adequately researched. More so, in Indian context, where the real estate sector is inadequately regulated and opaque.
As one start looking around without structured parameters, the confusion compounds.
Below are some major pointers on which one must deliberate before buying a property:
The first and foremost thing that one must be clear about is that purchase of property is for self use or pure investment. Because if the decision is, let’s say, for investment, only then the location or area doesn’t matter as much as the builder, delivery, scope of capital appreciation, rental values, hidden cost etc. matter.
The most obvious point to consider in any purchase is ‘What’s my budget to buy property’. Market is full of options. Before one goes out scouting, it’s important one has fair amount of clarity about the money one wants to invest in property as it would reduce confusions, impulsiveness and also help in sound financial planning.
After evaluating ones needs & desires, it’s important to limit range of area where one shall like to buy property especially if it’s for self use.
Once area is decided, one must now further short list the location by looking at it’s neighborhood (Slums is major issue in Mumbai) and infrastructure in terms of connectivity, safety, markets, school, medical facility and future development plans etc.
Both old and new construction have their own set of plus & minus in terms of quality, amenities and price. Also urgency of need is important factor in case one looks at under construction property.
It’s important to know who is the builder of the particular chosen property. It’s important to do background check of the builder because quality of construction and commitments depend on builders’ reputation. Reputed builders will always command premium. But that premium remains always attached to the property.
The type of project has lot of bearing in terms of pricing, infrastructure and neighborhood. Clear plot project will always command premium and is worth it.
Before making the final decision, one must look at the title of property and whether all Govt. approvals are in place. It’s always advisable to take a legal advice though it may have some cost.
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Especially in under construction or new projects, delivery is an important factor. Giving a grace of few months, the property must be deliverable as per schedule. Delivery overrun also has adverse impact on cost of acquisition in terms of cost of funding etc.
One must ensure that funds to buy property are fully tied up and well planned.
Now-a-days, property developers are offering attractive schemes of payments. One must ask and check such schemes but ensure that they are genuine and not sugar coated pills which ultimately harm the buyer of residential or commercial property.
Buyer must read the property deal in detail and minutely to check it doesn’t have hidden costs and restrictions in term of maintenance, transfers, escalations etc.
It’s good to know beforehand what’s going to be recurring cost in terms of property taxes, maintenance and society rules etc.
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