Reasons to buy a property before 2017 ends

Dec 18 2018

Do you plan to buy a property anytime in the future?

If the answer is yes, you are doing the wrong thing by waiting.

Making a real estate investment is indeed a critical thing!

Frankly, it takes away all your savings at once.

However, don’t you think the returns are worth it?

We have all faced the dilemma of planning but the constraints seem more binding every month. Again, the expenses increase, and they are always 10% more than the current salary. But, still we manage to save some and we manage a lot of things too.

You can not afford to sit back home unless it is making you big bucks.

See for yourself, how much renting even a single room earns you especially in a metropolitan city. Nowadays the paying guests, and there are so many other ways that house, your one-time investment makes you money.

Yes, obviously, it is a big investment to work.

No, my friend, you wouldn’t regret it anytime in the future.

On our viewer’s request after a recent post, Spacio Realtors bring you top 6 Reasons to buy a property before 2017 ends:

1. Price is the lowest they can be anywhere in the future

Whilst the prices keep on increasing, now is the lowest they can be anytime in the future. With all the development projects, new laws, plus, increasing population, what do you expect?

Even in the past, 95% of all the times, prices have only shown a straight rise

Reading ahead, you would know why will there be a significant one in the coming future.

There has been a prominent increase in foreign investment and Indian real estate is expected to touch the US $180 Billion by 2020 according to Indian Brand Equity Foundation.

2. Influence of Demonetization

Most of the real estate transactions were made in the form of cash prior demonetization. It is no secret how much black money influenced the business, on the top of which there was zero transparency. The banning of 500 and 1000 Rupee notes, came as a shock to all.

With demonetization coming into action, there is some decrease in the property prices.

You can check the property trends of Mumbai by clicking here.

Post demonetization, the demand dropped significantly creating a bigger room for negotiations. For obvious reasons, when the demand is bigger, you can not really expect the price to be dropping.

3. Smaller interest rates

From 8.25 in 2011 to 6.25 in 2017, The Reserve Bank of India decided to keep the repo rate unchanged for the year.

A recent report by RBI, from the weekly update of statistics made, is evidence of this.

To comprehend this better, you should be very clear about the investment made in Renting and purchasing, especially for the latter. You must have a very clear picture of how much basic investment i.e. liquid money you are required to have to make a purchase and how much will it cost you later including the hidden prices.

Must Read: Rent or purchase, things to consider before making a choice.

4. You will be thankful for your decision a year from now:

Property investment, especially in Mumbai, the city which has been on the top of the list for being the most benefit in terms of Real Estate investments.

You can check this research report to know how much growth potential Mumbai, and Pune properties hold.

And, for the matter of fact, we have seen some significant rise in NRIs looking to make property investments in Mumbai specifically.

Taking into consideration the many reasons there are, I bet, you will look back in a year and be thankful for the decision you made today.

Post Demonetization, transaction value and quoted value are prophesied to be close to guideline value.

5. India’s development pace

Haven’t you heard about the GDP yet?

Indeed, it decreased in the recent past, but with the same government, it was more than expected in 2016.

Post demonetization, Income Disclosure Scheme 2016 and Make In India project, you can well imagine what is going on.

The purchasing of foreign goods became more expensive with the drop in the value of Indian Rupee, then the export price reduced.

Clearly, export is benefited!

In current fiscal, GDP dropped to 6.1%

And, this is the reason that the value of Indian Rupee is expected to increase in coming future, and GDP is expected to reach 7.1-7.7% in 2017-2018.

Our growth rate is more than that of China’s!

6. RERA empowered the buyers:

Lately, we have been posting a lot about RERA on our blog.

Needless to say, that it empowers the buyers by bringing much-needed transparency in real estate transactions.

With the Real Estate (Regulation And Development Act), 2016, buyers can finally feel secure about their investment made.

Plus, it also obligates the builder to be more conscious about what he confirms and what he delivers to the investee.

You can read our post about, Rights of home buyers under RERA, where we have discussed the many ways buyers are
benefited.


9 points to check before buying flat or property

Dec 18 2018

List of important Documents for Buying a Resale Flat

Dec 15 2018

Have you identified the most important set of documents that you need to buy a resale flat in India?

Have you had trouble finding out from where to procure these documents and whether they are mandatory to proceed with the deal to purchase the resale property?


In this article, I’ll list out the legal documentation requirement that a home buyer must add to his or her priority checklist and also communicate to the selling party so that there are no delays in the transaction.

1. Chain of all sale deeds

  • Significance: To trace ownership of the property.This document evidences sale and transfer of ownership of property in favor of the buyer, from the seller. It acts as the main property document for further sale by the buyer as it establishes his proof of ownership on the property. It is normally executed after execution of sale agreement, confirming that terms and conditions detailed in the sale agreement as agreed upon between the buyer and the seller are complied.
  • Mandatory
  • It is registered in Sub Registrar office in whose jurisdiction property is located and register it within 4 months from the date of execution.

2. Share certificate

  • Significance: It indicates membership of the current original owner in the society. Subsequent transfers are endorsed on the back of the share certificate. As per co- operative laws, the ownership of flat is identified with share certificate. Its the membership of society which gives right of ownership and occupation of the flat. It is the most important document to signify the ownership when buying a resale flat in India.
  • Mandatory
  • It is issued by the society in favor of the current original owner. If lost, a procedure as laid down in the Co operative by laws has to be followed like indemnity, newspaper public notice etc.

3. Bank clearance letter in case property has any bank loan

  • Significance: If you have taken a loan against the property than all the original documents relating to the property are kept in custody with bank. While selling such property, clearance letter is required from bank which is issued with conditions that specified loan of the bank has to be cleared before the original documents are handed over to the new buyer.
  • Required, if you have taken a loan against the property you are selling.
  • This letter is obtained from bank. If lost, it can be re issued by bank.

4. NOC from society

  • Significance: To certify that the society has no objection to transferring the share certificate in favour of the potential purchaser is needed if applicable. Any sale without NOC from the society may not be acknowledged by the society and raise complications in transfer.
  • Mandatory
  • It is issued by the CHS.

5. Title report

  • Significance: To ensure that compete chain of earlier sales are properly registered and if any government lien is marked on property. It is a report, not a legal document.
  • Not mandatory. Important especially in large ticket size deals specially relating to land.
  • Tittle search is taken from Registrar’s office.

6. Occupation certificate

  • Significance: To certify that the building has complied with the approved plans. Once the building is complete, the builder has to obtain an Occupation Certificate or OC.
  • Desirable. Property without OC is vulnerable. The property is not officially recognized and termed illegal by local authorities.

7. Car park

  • Now, builders have stopped issuing separate allotment letter of car park as its not legal to sell car park. But it is important to take confirmation of car park.

8. Municipal approved floor plan

  • Significance: It is full plan copy (floor plan) of that building and the wing you planning the purchase. It gives an idea about surrounding and spacing.The property one is buying must match with the approved plan.
  • Desirable

Round-up: Remember, you don’t want to get stuck with a property for the rest of your life that doesn’t have clear title or any other missing legal document that prevents you or your children from reaping the benefits in the long run. Due diligence is required when buying a property, but instead of getting overwhelmed by a long list of paperwork create your document checklist or hire a property consultant to guide you for the same.

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Connect with one of our experts. We look forward to helping you with your real estate needs.


Before You Buy a Property

Dec 15 2018

Tips to buy a Property

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:

OBJECTIVE….SELF USE OR INVESTMENT

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.

BUDGET

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.

AREA

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.

LOCATION/NEIGHBORHOOD

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.

NEW/OLD PROPERTY

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.

BUILDER

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.

PROJECT TYPE …CLEAR/SRA/MAHADA/PUBLIC CAR PARK/ GOVT WELFARE SCHEMES

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.

TITLE

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.

Related PostDocuments required to buy a resale flat

DELIVERY

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.

FUNDS TIE UP…LOANS

One must ensure that funds to buy property are fully tied up and well planned.

SCHEMES …EASE OF PAYMENT

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.

HIDDEN COST

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.

MONTHLY MAINTENANCE / RECURRING COST

It’s good to know beforehand what’s going to be recurring cost in terms of property taxes, maintenance and society rules etc.

Do you have any query…….. We shall be happy to help you.

Next Finding a reliable real estate agent


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