Owning a property is always a wish for a common man. Be it a large or small house, it depends upon the financial background of the buyer. But owning the right property makes contented be it with happiness and value. Normally, before purchasing a property every investor must scrutinize some important things like the legal documents, real estate brokers, value appreciation, etc… These things will play a key role in the future generation. As the scams are increasing day by day the government is also forming new rules to tackle irregular activities. RERA is one such rule where it provides transparency while purchasing a property.
As real estate investments are illiquid and require a lot of money to purchase a single property, investors must be necessitated to follow some precautions before making an agreement. So, in this blog let us look at five important things to consider before purchasing a property.
1) Legal documents
Make sure to investigate every single document that is concerned with the property. Try to inspect two to three generations to whom the property belongs and the transactions that were made on the particular property. Take a legal opinion from a lawyer about the property and follow due diligence. Reach out to the concerned sub-register office and enquire about the property whether it is legitimate or fake.
2) Budget
Before purchasing a property try to fix a budget according to your affordability of repaying back. Choose a range in between and in-hand cash. Generally, the builder will ask for a security amount to make an agreement. It could range from 3-5% of the total value of the property. So, before purchasing any property always fix a budget and then scout according to your preferable house.
3) Understanding the value
Before purchasing any property be it land or villa or flat, try to reach out to other builders in nearby locations and get the quotation along with prices. Compare their prices to the property you are willing to purchase. If you think the price which you’re going to purchase is higher then renegotiate the price with the builder. Compare every single amenities that are included with others.
4) Loan availability
Check the loan availability for the concerned property you are willing to purchase. Try to ask the builder about the loan details and how much you can avail yourself of. Reach out to the bank and get the details and their offerings. Even if you want to purchase the property by making full payment from self-fund try to have an option to go with a loan. Because in the future if you decide to sell the property then the buyer make prefers to go with a loan. In that situation, it will be very difficult to find a buyer who is willing to self-fund.
5) Builder status
Check the builder’s past projects and their status. If they were completed, try to visit one of those and examine the quality. Ask about his experience and his company details. Check his profile in RERA and look at this current project. If you feel the builder is legitimate and trustworthy, then make the payment.