Investing in Home Sweet Home: The Secrets of Informed House Hunting
One of the most important decisions in one’s life is buying a house. They invest their life savings and hard-earned money in a property. They want to make sure they don’t regret it later.
To help you make informed decisions, we’ve compiled this list. This article will only consider the situation where you want to purchase a house, apartment, or flat in a residential development that is being developed by a developer.
Internal factors are those that relate to the property you are looking at. If you’re looking to purchase an apartment in a specific residential development, the internal factors will be relevant to that project.
External Factors are those that are not part of the property but are part of the market or are dependent on your financial plan. These factors could remain the same regardless of which property you purchase.
Property Buying Guide in India
Things to Consider Before Buying a House in India. Here we Speak about both internal and external Factors
RERA - Real Estate Regulatory Authority Registration
RERA, or ‘Real Estate Regulatory Authority, is a state-level authority that regulates real estate projects. It is crucial to verify that the project has been registered with RERA. It doesn’t necessarily mean there are no problems with a project that is RERA-registered. This is not proof that the Developer registered the project with authority. Buyers should contact RERA if they have any questions.
The reputation of the Developer
Before buying a property in India, it is vital to check the reputation of the builder. This is especially important if you’re purchasing an under-construction property. You must ensure that you get a high-quality product within the timeframe. It is vital to examine the track record and past performance of the builder to determine if he has completed his previous projects on schedule.
Customer Service Quality
A house purchase is not something that can be done in a matter of hours. You are bound to any developer once you have booked a property. This is true until the project is completed and the handover is complete.
The ratio between Constructed Space and Open Space
A sample layout showing a project that has a high ratio of open space to built space
You should check the amount of open space within any project you are considering. There are many issues that can arise from too many or too tall buildings, such as congestion in parking lots or traffic problems. It is critical to assess whether there are enough open spaces within the project to support the residents who will eventually use the property.
This is an example project layout. It shows that there is enough open space and sufficient built space to meet the needs of all residents.
Number of Units per Floor
How many flats or units are on a floor? What does this mean for you? It matters because too many apartments can cause privacy issues and make it challenging to use lifts. You will see many flats on one floor in current projects. It’s okay if there are no common walls between the apartments or if they aren’t too close together. Otherwise, privacy will be compromised.
Number of Units in The Project
You should also consider the number of units in your project before you buy a house or flat. Some prefer to live in small communities with few apartments, which gives them privacy. Others prefer large towns where they can be part of a larger community.
Effectiveness of the Layout
Did you know that flat layouts are highly efficient? The design should be efficient to get the most space for your money. Take, for example, two flats ‘A & B. Flat A is 700 sqft in size, but the rooms are more extensive. Flat B is 850 sqft, but the rooms are smaller. Because of the narrow passages and terraces in the flat, this is why a lot of space is lost. A flat with less usable space will cost you more.
The sample floor plan shows that, although the total area of the flat (708 sqft) is smaller than the living room and bedrooms, it’s still quite impressive.
Specifications of the Unit
Specifications refer to the type and quality of materials used by the builder to finish flat. It is crucial to verify the quality of the tiles, doors, windows, and electrical fittings that the builder will provide with your flat. Although the builder might have used the highest quality fittings for the flat, they could not be the same as the ones being supplied to maintain low construction costs.
Although it is hard to justify the cost of a flat purely based on these specifications alone, you can get an idea of the value you are getting for your money.
Architectural Pros & Cons
Ask the Developer for the drawings and have them checked by an architect or interior designer. Sometimes, the design may need fixing that could hinder your interior design and planning. You may find a column or pillar not in the right place, making it difficult to place furniture or fix appliances properly.
It is vital to assess how well the building and project layout are planned. Is there good ventilation and airflow within the building? Does your home get enough natural light? It can be challenging to find a flat that scores 100%, but it is possible to get an idea of what your house looks like.
Project Documentation & Title Verification
It is now easy to verify primary documents for a project, as most Indian states have RERA. In the case of joint venture projects, you will need to verify the documentation, such as the commencement certificate and sanctioned plans. An experienced lawyer in real estate should review these documents.
It is crucial to ensure that the project has no legal problems that could impede construction, delay possession or cause delays. A lawyer will check that the title to the property is clear. The Developer also has the right to build and sell the property.
After you have booked, ask the Developer to send you a draft of his sale-purchase agreement. Also, get it checked by a lawyer. Most developers use a standard format and don’t allow for any modifications. However, you can get an idea of your legal obligations and those of the Developer.
Make sure you read the terms of payment and the clause about the Developer’s liability if he cannot hand over the property within the stipulated time.
The Maintenance Required after Possession
Many buyers overlook one of the most crucial things before purchasing a house in India. How much maintenance you’ll have to pay once the possession is yours? Most builders take an upfront amount and then hand over maintenance and repairs to society. This is where it gets tricky. If the builder provides too many expensive incurring facilities, and the society cannot manage the funds to maintain them, this could increase the cost.
Profile of the Buyers in The Project
Are you curious about your neighbours? Many people want to live near people who are members of a particular profession or social group. You should also check the buyers of the property before you buy it. They may be the people who will stay with you in the future.
Before buying a house, you should consider whether the builder sold most of the flats to investors or end users. Or if he gave some apartments to landowners as part of their joint venture agreement. There is little participation in social affairs if most flats are vacant.
Safety & Health Hazards
It would be best if you also considered safety when buying a property. It would be best if you avoid any potential health hazards such as high-tension cables, garbage dumps, or factories. You can check by doing a survey of the area and reviewing the most recent development plans issued by the municipality to see if there are any adjacent plots that could be used for such activities.
Major Location Advantages & Disadvantages
When looking for a flat to rent, it is important to consider the location’s key benefits and drawbacks. It is important to find out which jurisdiction the flat falls under and what projects are being planned by the Government. Also, you need to assess the location from a residential perspective and make sure that there is enough water and greenery for future generations. It is also important to determine if the location is easily accessible from other parts of the state and cities.
Accessibility to Social & Civic Infrastructure
In addition to the above, it is important to assess how easily the project can be accessed by primary schools, hospitals and shopping centers, public transport, banks, as well as restaurants, hotels, banks, and other institutions. Are roads in good condition or do you have plans to build new roads? Also, you need to verify the availability of essential services such as uninterrupted electricity, good internet service providers, and cooking gas pipelines.
Average price in the Micro-Market
A micro market is the area in which you want to purchase a property. Before you buy a property, it is important to know the average selling price in that area. You can better plan your budget and negotiate with the Developer.
Budget and Loan Eligibility
Your budget is an essential factor to consider when buying a flat. It is up to you how you calculate this figure. The bank will lend you around 80% of the cost of a property to purchase. The buyer must pay the remaining 20%. You must organise your finances to pay the builder in a month.
Also, it would be best to verify how much loan the bank can give you. The amount you can borrow from the bank is usually 50 times your monthly income. If your monthly payment is INR 2,00,000, you might be eligible for a loan of up to 25 lakhs.
Understanding Taxation & Govt Schemes
You need to know the taxes you will pay when you buy a property. In India, GST is generally charged for properties under construction. For properties that are already in existence, there is no GST. Each state has its own registration and stamp duties. In Maharashtra, for example, Stamp Duty is 6% of the agreement value. Registration charges are INR 35,000 or 1% of that amount, depending on which is lower.
Remember to check if you are eligible for Government schemes such as PMAY (Pradhan Mantri Awaas Yojana), which can provide monetary benefits when you purchase your first home. This scheme has been discontinued. However, it would be best if you kept an eye out for similar projects in the future.
Resale, Rental Value & Capital Appreciation
You should also consider the potential capital appreciation and resale value of the property if you decide to sell or occupy the property. A property in a desirable location will yield a 5% capital appreciation. If you can predict the future value of your property, you’ll be better positioned to make a purchase decision.
The Concluding Thoughts
Here we conclude. This list should help you better understand the home-buying process and make informed decisions. If you have any questions about any of these points, please don’t hesitate to contact us.