Buying a dream house or flat is one of the most challenging task in India and there are several things to remember in order to get the best deal. It is not only a sentimental affair but also involves major financial investments. Whether the purchase is for residing or for investment purposes, it should not happen that one lands up in a sea of problems! Property cannot be exchanged like we do with our other purchases.
So before impulsively buying any property in India (cities like Bangalore, Delhi, Mumbai etc) for the first time, keep these following 10 important things in mind. Make sure to check these points before you take final decision to buy a house:
Licences and other legal documents
The builder will always boast about everything offered by them to be in perfect shape. Do not trust them entirely. Do your own research. Make sure to ask the builder to show and provide the photocopy of the legal documents related to builder’s property rights that includes the title deed, encumbrance certificate; which shows the land is clear of legal issues, release certificate from the bank, property tax receipts, verification of plan of the land, approval document by the development corporation as well as the local body, water tax payment status, municipal tax payment status and land revenue dues.
List of Approved Banks Financing the Project
Many projects do not land up getting financial tie-up approvals from banks. Thus it becomes very crucial to scrutinize and find out the same. There are many cases have been seen in metro cities in India like Delhi, Bangalore and Mumbai where projects were not delivered within the deadlines and the hard earned of common man stuck. After short-listing the banks, it is best to go with the one which offers the lowest interest rates.
Calculation Actual Cost : hidden costs
The brokers do not always give you the correct figure for the property you are planning to buy to make it look more lucrative. Be very inquisitive here and asks many detailed questions. Hidden costs include club/maintenance charges, preferred location charges, floor alleviation preference charges, and development fees, parking area fees, service charge and the like. The total cost is certainly much more than the basic amount calculated by the builders at the first go. Ask for break-ups and the final total cost very clearly.
It is very important to do a background check about the builders. You can do this by evaluating and getting a feedback regarding previous or current projectsn or outside your preferred location. If the builder is a new one, post inquiries on social channels and see what other people have to say. Become an active part of forums to track any data regarding the builder.
Be aware of the payment break-ups
Every builder will lay down their payment break-up and defaulters clauses. Be careful and understand each phase and mode of payment. Understand the consequences of payment default from both the builder’s as well as the buyer’s side. There are several payment options available in Indian market like the most popular ones flexi-payment plan, down-payment plans and construction and possession linked schemes. There is a different cost structure for each and thus it becomes important to choose whichever suits you the best.
Read the sale agreement very carefully. It is best advised to take professional legal advisors’ help in reading the same as many clauses might be very tricky for a layman to understand. Make sure all the clauses put down on paper benefits both the builder as well as the buyer equally. If any dispute arises, do share and get your point explained thoroughly by the builder before signing the agreement.
Apartment size and additional amenities
The brochures generally talk about only the super built-up area of the apartment which includes shared areas like the lobby, lift, stairway etc. The carpet area thus rounds up almost 30% lesser than what is stated. Thus it is always advisable to calculate the carpet area and look for ready flats of the same area and take a physical tour of the same to get the real feel of space.
Location and infrastructure
Locality plays a vital in property selection. Check whether the upcoming or present infrastructure suits your connectivity or daily needs. Also the topography of the place is well aligned with your expectations. For example, if an area is water logged badly during the monsoon, yet has lucrative offers, think twice. Will you be comfortable living in that area?
Physical checking of site
The actual site might be very different from what is put on paper. Thus it is advisable to visit the site physically and understand its connectivity, pros and cons. It is the best way to check the neighbourhood and its dwellings.
After freezing on a plot, registration of the property becomes very crucial for legal ownership. Through this deed the owner gets the right to the property and is eligible for reselling it. Here legal help can be taken to complete the task.
Keeping these things remember in mind can get you buy a better home and a better life! If you know any other better idea then do let me know.