Posted on 11/01/2019
Factors considered before buying a property
AuthorTanya Soni
In today’s era, a large number of people migrate from rural to urban areas due to various reasons such as employment, better education, modern facilities etc. After migration, the first thing that come to the people’s mind to buy his/ her own house or property. The most significant financial decision that one will make ever is buying a property. It is certainly a lifetime investment for many people.
There are some factors that you should consider before making this decision as it will affect your financial state and lifestyle. Some of the thoughts you have to keep in mind when it comes to finding the right property for your investment include:-
Your Income Stability: Be assured about your income before thinking to buy a property. Ask yourself, “How stable is your income?”, “Your income will increase or remain same in next year?” If you are not sure about your financial situation then investing in a property is not the best idea for you. If still buying a property is a necessity for you, then you should go for a home loan. You can get home loans from most of the banks at interest rates less than 9%.
Real Estate Market: You should do your research before spending too much money on real estate. The prices of the properties often go up and down depending on the real estate market. If the real estate prices have gone down extremely then you should focus on your dream of being a homeowner. But if the housing prices are at high, then you should wait for some time.
Builder Verification: After ensuring your financial condition, you will start visiting the projects by the various builders. It is recommended to verify the builder before buying a property as the property may be under some legal dispute. One must verify the previous and recent projects of the builder from real estate forums.
Area of the Property: Always ensure that how much land you will need to build your home. Understand your requirement before visiting the property sites. If you are planning to buy an apartment, then must ask the builder about the size of the apartment. Builders generally mention super built-up areas in booklets. The carpet area of the flat could be 30% less than the super built-up area. Always go by the carpet area, the area enclosed within walls.
Property Location: The prices of houses vary according to the location. A house which is well connected in infrastructure terms like the market, public transportation, schools, colleges etc. will cost more. Each location has its own unique advantage. Make sure the location on which you are buying a property suits your budget and meets all your needs before making any investment.
Site Checking: Must visit the site thoroughly before buying the property. Ask from the neighborhood about the property and any legal disputes related to it. Don’t just rely on the booklet the broker shown you. The reality could be different.
Maintenance Costs: If you are buying a house, then inspect it in depth. Ask the questions tothe broker about the house such as building materials, renovation, any addition etc. It will help you in considering maintenance costs and also save you from buying a house that is always in need of repairs.
Check Infrastructure: Ensure that the property is far from any polluting factory or industry.
Furthermore, if the location of the property you are looking for is linked to Metro Connectivity or any other big infrastructure development in future, then there is a higher chance that yourreturn on investment will increase to a very great extent.
Licensed Property and Approvals: Once you set your focus on a property, go through the paperwork related to it like commencement certificate of work, environmental clearance etc. Ask the builder about the land status to know whether he has bought the land or is just allowed to do development on it. There are some documents that you should check such as Title Deed, Release Certificate, Check Encumbrance Certificate, Verify Land Use, Approvals by Local Body, Property Tax Receipts etc.
Total Cost Calculation: Ask the broker about the final cost of the property. Most of the times, brokers don’t include important factors such as internal/ external development fees, preferential location charges, service tax, parking/ club/ statutory charges while mentioning the total cost of the property. Do not purely believe on the basic cost told to you by the broker.
Payment Options: There are a number of payment options available in the market such asdown payment plan, construction linked plan, time-linked plan and flexi payment plan. You must choose a payment plan carefully because there is a cost for every convenience. Check Who Is Financing The Project: Some builders don’t have enough cash to complete their projects and neither they get loans from the banks. So after finalizing the property, consult banks to get the loan and choose the bank with the lowest interest rate and fund your project.
Property Registration: Once you select the property to buy, you have to register it to become a legal owner of it. Register the property with the authority concerned for you. Through registration, you will be able to acquire the rights of the property.
Property Insurance: If some kind of damage occurs to your property then Property Insurance safeguards your financial future. The insurance provides coverage in case of problems with the property title, certain damage or any legal issue. Choose the right house insurance policy to protect your property. You should have someone as a resource to guide you before taking a decision of protecting your major assets.
Deeply think and conduct careful examinations before buying a house. If you want to ensure a positive return on your investment, then it is important to consider these factors to choose the right property.
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