There are several important factors to consider when choosing a property for purchase. After all, purchasing a property for the majority of middle-class Indians is a once in a lifetime decision! So, we thought of listing the Top 10 considerations. You might want to take a screenshot and keep this handy…
- End-use of the property: Before deciding on the property itself, question your reason for purchase. Will you be staying there or is it for investment purpose? This will help you determine a lot of things – like location, size of the property and the trade-offs that need to be made.
- Type of the property: There are a plethora of options available today: apartments, houses, plots of land, and so on. Another important decision you’ll have to make is whether to buy an under-construction property or a ready to move in property. Both has its own set of pros and cons. You can buy an under-construction property at a low price point, while a ready to occupy house will cost you more but is likely to have the no objection and possession certificates in place. On the other hand, an old resale property could be affordable but may require repair and renovation.
- Locality: Does the area suit your needs? Is the neighborhood safe? Scan your neighborhood at night. Is it near to your workplace? If you are moving in with your family good schools and hospitals within 4-5 km radius is an absolute necessity. Make sure the locality has the right balance between residential and commercial needs.
- Property Cost: Those of you who are wondering why didn’t this come before. Well, if you take care of the above 3 pointers. You will already have a fair idea of the per square cost in that area! Don’t blindly trust the online sources, ask around, should speak to random people in the neighboring buildings to get an idea. There could be a 5-10% difference even within neighboring buildings, depending on the quality of construction, the exact configuration of the apartment, etc.
- Credibility and track record of the builder: A developers reputation and credibility go a long way. Lucky us, we live in the information age. There are ways to get due diligence on the builder. Be smart, from the beginning, it can save you from huge losses later. Some things to look out for: timely completion of previous projects, his financial stability, and legal proceedings. Online property forums will give you a lot of info on the same.
- Quality of construction: If you are buying an under-construction apartment, then personally visit the buildings already delivered by the same builder to check out on quality of the construction. You can ask the occupants or the society office to get feedbacks on delivery time, materials used, structural flaws etc. If it’s new construction, repair and maintenance cost shouldn’t be a worry!
- Completion time: While buying property still under construction, you need to consider whether the estimated completion time tallies with your own timeframe. Generally, projects run 5-6 months past their deadlines, plan your big decisions accordingly. Choose a property that suits your time frame carefully.
- Check the approval status & legal documentation: An apartment complex requires several approvals before the construction actually starts. These include approvals from the fire, water and electricity departments, to name a few. Thus, buyers must ensure that the developer possesses all the necessary approvals.Another common area of conflict is the size of the property. Thus, one must carefully check the carpet area, built-up area and super built-up area of the property. Assistance from a reputed lawyer/law firm is advisable here. As per the RERA reforms, developers are obliged to register with RERA for every new project exceeding an area of 500 square meters. Make sure you check the license and registration number of the development before investing. Also, confirm that the developers have received a No Objection Certificate (NOC) which certifies that the property has been completed without any violations.
- List of banks financing in the project: Reputed financial institutions and banks financing in the project is always a good indicator, as they have done all the due diligence before giving an “approved project” stamp! So, before you finalize the property check for signboards that will confirm all approvals. Also, this will help you shortlist a bank / NBFC to fund your project in-case you are looking for a home loan.
- Resalebility of the property: Last but not least, the resale value of your property would determine if your investment was a smart one or not! You might not have a plan to sell it off but it’s good to be sure if you are creating a solid asset.
So, this was our Top 10. Hope this helps! But, there’s always a but… please gather as much information in the beginning as possible and make an informed choice. We’ll take you home.