Property Purchase Do's and Don'ts
Do’s:
1. Start by knowing the investment purpose. Know your budget before you select a property. Consider different factors such as down payment, monthly mortgage payments, property tax, outstanding debts, insurance and other purchase and ownership expenses when making budget decisions.
2. Do a research on the real estate market to obtain the best properties at reasonable prices. Equate the same with other places and resources, taking into account factors such as accessibility, services, planned construction of infrastructure and more.
3. If the property is purchased through a loan, consult a professional tax consultant. A tax consultant will report the benefits and disadvantages based on your available income, property type, interest rate expected, and tax benefits.
4. You must ask the builder / owner for essential original documents such as Title Deed, Sale Deed, Occupancy Certificate, Clearance Certificate, Start Certificate, Encumbrance Certificate, Khata, Bank Certificate with Loan Status, Number of Bank Checks, Plan Sanctions Document, Tax Receipts and Bills, Power / Water Board Sanctions Document and approval of fire safety. Don't forget to know the age and value of the land.
5.Choose a property based on its location and distance to schools, places of work and other amenities.Likewise, you should consider the property's surroundings as it affects your lifestyle. Don't forget to learn about the property's resale value.
6. By sharing your financial information with a lender, get a pre-approved loan for the required amount.
7. Make sure the plot on which the house is built is a non-agricultural land and the building is in the name of the owner.
8. Hire a decent home inspector and receive from him the inspection report. Nevertheless, for the structural elements, exterior, plumbing, roof and attic, electrical units and garage, you can personally check the house.
9. For the full property documents take legal verification and read it thoroughly to ensure that the provisions are in favor of the buyer. Legal counsel will also support the customer in the due process of paying the obligation and registration of the stamp, which will eventually help with future legal proceedings.
10. Ensure that as stated in the project brochure, the property has all the facilities. Make sure to offer all the facilities before you sign the documents and do not depend on the builder's pledge to later provide the facilities. Be clear about the charges for parking and maintenance.
11. While you may not pay much attention to these, it is important to review the builder-buyer agreement, escalation clauses, penalty clauses-payout; interest rate reset clauses and registry costs, and be fully aware of them. Just make sure the land is free of any other obligations.
12. Check whether the lease is licensed in the developer / company's name; check if regulatory permissions are in place for climate, safety and fire; also check whether the map / layouts have been approved.
13. Verify whether the cooperative housing society was founded and whether the property's conveyance deed is in favor of the society.
Don’ts
1. Do not buy a property without the assistance of a licensed real estate agent. The agent may know things you don't know about.
2. Avoid investing in more than one property at a time just because you might end up getting an excess amount of loan. Ensure that every month the loan amount can be easily paid.
3. Do not purchase a property without verifying the builder's record, his credentials, and his past ventures. Do not, however, fall victim to the builder's made assurances or tempting pricing schemes
4. Do not take advantage of a misleading loan, but read every detail of the loan contract to understand the terms and conditions. Often, multi-option loans are not eligible. Stop borrowing a loan that is higher than necessary. When seeking a loan, consider your financial situation and future plans.
5. Due to its interiors or any other attractive features, do not blindly spend in a property; rather than, see if it meets your requirements.
6. Do not spend in an expensive home if it could give you a higher price appreciation in the future. Bargain for different things with the builder before making the down payment.
7. Refuse to buy the property without understanding the location's prevailing property rate. Prepare to compromise if the rate you are offered is higher than the rate that prevails.
8. Resist sacrificing the facilities and avoid choosing unnecessary facilities. Tell the seller about the amount of services to be provided. Remember that if the building is more, then the repair is more.
9. Unless you get the application form of the organization filled with the unit number and the super built-up location, don't issue cheque to anyone.
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