7 things to look for prior to purchasing real estate

 

Be sure to keep these important points in mind while you are making your purchase decision.

1. What's the carpet's size?

This is a major point of disagreement. Builders try to convince buyers by promoting the super-area of the project. Super area comprises the usual services used by residents such as elevators, lobby as well as corridors, stairs and elevators. These facilities could range from 20 to 25 percent of the super space as stated by the builder.

The built-up space is the part that is which is covered by a house. This includes the area that is covered by storage spaces and walls. What the owner can actually use is the carpeting area, which could be between 60 and 65 percent of the super area.

Be sure to know the carpet area in the home. "Ask the builder to make the division of the super-built-up area and the carpeted area. This should be included in the contract of sale," says Ashwini Kumar Hooda, Deputy MD of Indiabulls Housing Finance.

2. Is project under rera?

The Real Estate Regulation Act (RERA) can guarantee timely delivery by stopping the builder from channeling funding to different projects. However there are a few projects that are not included in RERA. Certain states have not yet adopted RERA. In other states, certain older projects aren't considered to be covered under this new Act.

3. Are you sure that the project has been approved?

Do your due diligence on the name of the Property and the status of permissions and approvals. The banks and other agencies can provide this service at a low cost. If everything is in order then you are in a position to obtain the loan. If there is something wrong your loan application could be denied.

4. Are you able to trust the builder?

The slowdown in post-demonetisation has forced many builders provide appealing payment options. In Bengaluru and in the NCR the assured buyback programs have promised to buy back the property for a 30 to 35 percentage premium after 18-36 months from the time of completion. There are also subvention plans which do not require EMI until the time of possession. Cautions Hooda, "Developers include interest to be paid out of the cost of property. If they do not pay their interest due, this will affect the credit score of the buyer."

5. Is it available?

It is important to consider location when purchasing a service apartment in Mumbai. Buyers want a home that is near to their workplace and other amenities. "After choosing the most suitable projects, buyers should visit the area at least three times and gain a firsthand experience of the location," says Ali.

6. Are freebies free?

Some cities, including Bengaluru are enticed by buyers by offering free woodwork, appliances , and white products. Although this may sound appealing, remember that there are no free meals. There's a high chance you'll find that your builder built the cost of freebies in the cost of the home. In the end, you'll be charged for what that you think you're receiving for free. "Buyers should not be seduced by discounts and freebies," says Jaffer Ali who is the founder and CEO of PropUrban, an online real estate advisory firm. PropUrban.

7. Do you have the money to pay the EMI?

The first thing you need to consider is whether you are able to pay to pay for the EMI of the loan you plan to take. There are many who get emotionally involved when properties in India and overstretch their budgets. "The mortgage EMIs, maintenance fees along with property taxes and other costs associated with housing should be kept within 30 to 35% of your household's total revenue," says Amol Shimpi Director, Associate Dean and Director at the Royal Institution of Chartered Surveyors School of Built Environment. A house that you can't afford could force you to sacrifice other financial priorities that are crucial, like education for your children and saving for retirement.