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- February 10, 2023
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Things to consider before buying your investment property
One of the most important decisions you will make in your life is likely something you have been considering since you were a very small child: investing in a new home or apartment. Years of planning and saving cannot be abandoned when the time comes for you to make the ultimate choice. As a result, you must consider all your options carefully before deciding. You need to exercise extra caution because purchasing a home may also require taking out a sizable loan, followed by monthly payments deducted from your salary. Having the right people to guide and advance you, which is obviously Estate Corporation!
If you pick the property correctly, the investment has the potential to be one of the best investments you can make, especially if it’s an investment in real estate. Since constructing this asset requires a sizable sum of money, making a bad real estate investment decision might have a negative impact on your financial stability. Therefore, it’s crucial to exercise caution during the entire process of purchasing a house.
Things to Consider when buying your real estate investment:
Property Cost:
Setting a budget is the first step in choosing a home or apartment. Knowing how much you are willing to pay for a house helps you narrow down your list of potential purchases. To determine whether the builder has given you a real quote, compare the price of the property in question to those nearby from different builders. You can compare properties in the area where you are looking in a variety of ways. These sources include portal listings, local brokers, or newspaper listings.
Flat’s Carpet Area
Typically, the listed super built-up area or area of a property includes all shafts, elevator space, stairs, wall thickness, and other features. However, the actual area within the flat’s walls is the carpet area. This area may be 30% smaller than the built-up area or the area considered when determining the property’s price. When two owners share a floor, it’s possible that they will split the cost of the common areas.
Land Record
The property on which your apartment is constructed is quite important. You must conduct research on the land’s geography and soil composition before building a residence there. In addition, the plot needs to be registered and free of all debts. The title deed must be thoroughly examined and verified before purchasing a property. The deed outlines every aspect of the property’s rights, ownership, and obligations.
Legal Verification
Verifying the property is legally permitted to be built on the land it is situated on by conducting a legal check on it. The area development authority, water supply and sewage boards, electricity boards, and Municipal Corporation should have granted the developer approvals and NOCs. However, the relevant bank will validate your property paperwork before loan sanction if you’re getting a home loan.
Apartment Possession
Due to delays in commercial and residential planning, it has been a trend for apartments to take longer to be occupied. You, as the buyer, should be able to clearly estimate when you will take possession. A developer will typically request a six-month grace period, but there should be a good reason for doing so.
Financing Banks
You should be aware of the banks that will or won’t finance builders. Specific banks won’t lend to some builders due to a negative reputation. Therefore, it is crucial that you confirm with the banks providing funding for the project you intend to invest in.
Builder-Buyer Agreement
After choosing a flat or house, you can reserve it by paying a nominal fee; in exchange, you’ll receive an allotment notice. The remaining sum is then agreed upon in a tripartite agreement between the buyer, the bank, and the builder. Before signing, this agreement should be carefully read and understood.
Location of the Flat
Don’t forget to take a tour of the neighborhood where you will eventually be living. Analyzing the facilities, physical infrastructure, and accessibility to all essential locations is crucial. You will be able to live in peace in your home thanks to these elements. Families living in the apartment should feel somewhat safe and secure because of the location of the apartment.
Possible Hidden Charges
Make sure you thoroughly read and comprehend all clauses in the documents to avoid any hidden or additional fees. If you don’t get possession of the apartment during the grace period, the builder is compelled to pay you a monthly penalty. It’s also important to consider other costs like GST, stamp duty, home loan processing fees, registration fees, and any other fees.
Conclusion
Property purchases entail several processes and require careful consideration. Before making this commitment, it is crucial to create a thorough checklist for the home buying process. The first step is to create a budget. The next steps entail, among other things, setting up funds, determining whether one is eligible for a home loan, consulting a real estate agent, looking for a suitable property in a good neighborhood, and inspecting the parking area, necessary amenities, construction quality, and tax clauses, documentation, and registration process. Estate Corporation is a good place to start to find a place that is just right for you, our services are always available for you!
