Top 10 tips to buy a flat faster
1. Stay invested for at least 3-5 years, if it is an apartment: Apartments, unless it's in a prime location with no other inventory and has excessive demand (which is not so for most part of the city), it is best to wait for some reasonable time. For example, you may get a 8% increase in the first, 11% in the second and 19% at the end of third year, making it a 8+11+19=38% return after three years which is not an yearly equated growth.
2. Either buy in pre-launch to strike a good rate or buy after it gets ready: A pre-launch has it's own risk and rewards. All the requisite statutory approvals when not in place, the developer tastes water by offering pre-launch low prices for a hand-full of apartments, which, if you are lucky and well-connected, you might chance upon. Else, the next negotiation time is when the builder has unsold ready inventory and wants to exit the property.
3. Buying an under-construction apartment has many costs involved which can't be ignored while selling: Costs like home loan interest, paying rent in the currently occupied home, not getting tax benefit (since property is not ready) etc are the few costs you must keep in mind. If you add these costs to the actual purchase price, your profit margin gets skewed and even get into minus!
4. Builder subvention is the only answer should you have to borrow in an under-construction property: If you have to pay bank loan interest till possession happens, which in most builders are delayed in any case, and that goes up to four to five years, it is advisable to look for builder-subvention deal 'till possession'. It costs the builder approximately 5-8% cheaper than taking construction finance and they might be glad. It's a win-win if all goes well.
5. No need to upgrade the fixtures: Please do not spend extra cash on upgrading the floor to italian marble, or indulge into extravagant bath fittings etc; as you may not get the price for these. Any opportunist buyer (read: a smart one) knows that you have no choice but to sell it including the upgrade.
6. Please do not change the internal plans to suit your needs: Some buyers try to make the living room bigger by cutting down on the bedroom-size to suit their lifestyle but it might pose a problem as either the buyer may not like the plan or think that it is a 'deviation' from the actual standard plan.
7. Please do not cover the balcony to make a study etc.: Many buyers do not know that covering balcony is considered an FAR violation and even the society can fine you for doing that. The entire building can lose fire-insurance claims etc. for one resident doing such. Your buyer, if informed, will never want to buy such apartment.
8. Do not compromise on servant's quarter to get extra space: It may not be important for you as you may not have a live-in servant, but your buyer just might, and this becomes one of the most important requirements for him. He cannot construct the toilet again if all pipes etc have been sealed by the builder upon your instruction. He will surely not buy your apartment.
9. Do not invest in high-cost woodwork: After all, you are going to sell it as you aspire to be in a bigger, better apartment. This was never your final destination. Then why fix teakwood furnitures? You will never get a price for your investment as your buyer might sincerely want to throw it away as he prefers modern modular stuff.
10. Buy that one additional car park, if so, but don't go overboard on buying three: There has been instances when builders have given 'compensatory' car parks in lieu of cash while delaying possession, convincing you that they are giving you a lifetime-investment which is valued at a very high price and not a mere delay-penalty of Rs 1 lakh, but this can ultimately become a bone in your throat as your buyer may not want to buy 4 car parks just because you have it. You may have to let the extra ones go free!
See Also: Top 5 tips to rent house faster