Factors to be considered before buying an Apartment / house

Today Buying an apartment or house is well within the reach of middle class and moderate income group. There are various ways and choices around us, all we need to do is explore it.

Home loans are not as tedious as a decade back. Financial institutions have eased lending rules and rate of interest is very competitive and well regulated by RBI. Banks have a variety of home loans to be lend in various levels of property owning stage. Property developers are offering value to the customers money. Property developers give hassle free property owning experience along with host of value added services like loan processing and documentation, legal clearance, registration of property etc., Amenities are today’s modern life demands and customers look for.    

Property purchase decision has to be backed by lot of research and thorough study of few vitals factors. Especially, for a common man it is a vital decision to be taken with caution towards potential pitfalls.

The points to be considered are as follows:

1. Location  

Location factor has lot of crucial parameters which determines your property present and future value. Generally, location factor is evaluated against availability of transport, medical facility, schools and travel time to work place are some of the aspects you should consider to arrive at property purchase decision

2. Pricing

Pricing is pivotal point of whole property purchase process. The demand price of the seller and affordability price of buyer must match to close the deal. The property price must be demanded must be logical and should have correlation to other properties in the locality.  Besides the size of the property, being linked the costs, would be normally looked into, but one should understand the full implications of size in terms of costs as well as comfort.

3. Understand all hidden costs

Not many are aware that the purchase price of the property is not only cost to be borne. You also have to pay for parking , amenities, society, electrification, preferential location charges(PLC) etc., You also need to factor in other hidden costs such as brokerage, stamp duty, legal fees, registration costs and maintenance costs, inspection fees, mortgage fees and the like. Ensure that you have budgeted for these too else they spring up unpleasant surprises.

4. Promoter’s Background

 In the event of buying a property from a builder obviously, one of the most important issues will be the choice of the builder. The reputation of the builder, resources, track record, adherence to delivery schedules, capacity of the builder to handle emergent issues, financial resources of the builder and quality of the construction to be considered. The Property Builders should enhance the hassle free property purchasing experience by quality of value added services.

5. Title Documents

When buying a property, ensure that the title to the land in question is clear. The clear title to the property makes property purchase process a smooth ride, else you will be on roller caster ride!

6.Other Documents

It is advisable for you to read and understand offer letter, allotment letters and charts, source disclosure documents, documents relating to purchase and all other documents required for acquiring the property or completing the acquisition.

7.Approvals

Ensure that the building plan is duly approved by the concerned development authority. Also check whether the plan is drawn as per National Building Code(NBC).Try to verify whether the developer has obtained other permissions and no objection certificates from relative authorities like Fire Departments, BWSSB and other relevant authorities.