Buyer’s Guide to Investing in Real Estate
Mar 28, 2017 Real Estate News
Investing in real estate is a precarious thing. It needs careful considerations of finances and research so the money does not go to waste. From taking a loan from the bank to moving in, every task needs to be carried out with caution.
Finance:
Set your budget before going out to look for property. It is a necessary step. Banks generally give up to 80 percent of the loan amount for the property and rest 20 percent should be paid from the buyer’s own saving. Make sure that your EMI is not higher than 40 percent of your total monthly income.
Research:
After setting the budget, research on the locality which meets your requirements and have access to basic amenities like water, transportation, schools, hospitals etc. research on the safety of the locality and the neighbourhood. A good neighbourhood is necessary for well being. Having parks and recreational places nearby is also good for inner development. Don’t go for localities that are very far from the main city and have connectivity problems.
Background check of the builder:
Checking the background of the developer is very important. Checking their history of past projects and whether they were delivered on time or not. Checking on the maintenance of the previously completed projects. It doesn’t matter if the builder is renowned or small, doing a background check is important.
Legal documents:
Check with the developer for the below mentioned documents before finalising the deal.
When you buy a property, a delay of six months is acceptable; anything beyond six months can be bad news. Pre- launch projects are risky investment and buyers should be careful while investing in them. Check the delivery track record of the developer through his past projects.
Finance:
Set your budget before going out to look for property. It is a necessary step. Banks generally give up to 80 percent of the loan amount for the property and rest 20 percent should be paid from the buyer’s own saving. Make sure that your EMI is not higher than 40 percent of your total monthly income.
Research:
After setting the budget, research on the locality which meets your requirements and have access to basic amenities like water, transportation, schools, hospitals etc. research on the safety of the locality and the neighbourhood. A good neighbourhood is necessary for well being. Having parks and recreational places nearby is also good for inner development. Don’t go for localities that are very far from the main city and have connectivity problems.
Background check of the builder:
Checking the background of the developer is very important. Checking their history of past projects and whether they were delivered on time or not. Checking on the maintenance of the previously completed projects. It doesn’t matter if the builder is renowned or small, doing a background check is important.
Legal documents:
Check with the developer for the below mentioned documents before finalising the deal.
- Check for the title deed. If the title is not in the name of the seller or developer step back from buying that property. An absence of title in developers’ or seller’s name can lead to a legal issue in future.
- Insist on seeing the title by yourself. Do not settle on the reassurance of the developer.
- Check if the developer has received all the necessary clearances and approvals for the project.
- If the property is under construction, ask the builder to hand over the allotment letter and development agreement. The allotment letter has all the details such as floor plan, date of delivery, details of liability incurred if the developer fails to deliver the project in time. The development agreement has all the terms and conditions under which landowner has allowed the builder to use the property.
- Consult an expert if in doubt regarding any matters related to buying the property.
When you buy a property, a delay of six months is acceptable; anything beyond six months can be bad news. Pre- launch projects are risky investment and buyers should be careful while investing in them. Check the delivery track record of the developer through his past projects.
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