Investing in the right property, which would generate monthly income or give high returns, is what every investor would always look for. With the increasing prices in real estate properties, buying a home or buying commercial property is an uphill battle for many investors in India. Every property buyer would make decisions based on their calculated risks & make property investments accordingly. Therefore, real estate agents need to clarify every financing document, legal procedure, market trends, and other aspects before negotiation with customers and vice versa. Putting your money into safe hands to have a safe future is something that is responsible, and although it might sound scary to invest, it is the smart thing to do.
Whether you are someone who has already invested or someone who is looking to invest in a property, you can tell by experience or by the tell-a-tales of other’s experiences that there were a few tips you wish you were told before investing. And so, here is a list of things you need to remember before buying a property.
1. Legal Procedures
You might think your developer might not do this to you or that he boasts a clean background; it is always better to be safe than sorry. Trusting someone with your hard-earned money isn’t something you should blindly deal with for your property, so although your developer or builder might tell stories, it’s best to back them up with facts and figures.
Here are a few questions you should ask yourself and your developer before investing in a property.
- Has the property cleared legal procedures?
- Is your property built on reserved land?
- What is the operation history of your developer?
- Think about Cultivating your rights for delays.
- Do you have all the necessary papers ready to buy a property?
- Are all the necessary items mentioned in legal documents correctly by the developer?
For buying property, entry-level developers make a lot of mistakes in filing legal procedures due to lack of experience. Therefore, it is better to deal with developers who have years of experience in buying homes.
2. Budget
Whenever an investor thinks of buying a home or any other property, the budget is the first constraint that comes into your mind. If the investor has a hefty amount of capital, then he/she would always think of investing in big apartments, but if the capital is low, then the homebuyers would mainly invest in small apartments. So if you’re planning to buy property, you need to estimate market growth, the value of the apartment down the line for upcoming years, along with finance. You are ready to invest it now. Further, there are many external factors like inflation in real estate markets which would impact the budget & empty your pockets more than you think.
3. Location
Once the budget is set, the next thing that you have to keep in mind is the connectivity. Since you’ll be buying a home and living there, it goes without saying that it has to be convenient for you in the long run. Your property should be well connected to your and your partner’s workplace, your child’s school, hospitals, entertainment sectors, restaurants, etc. These will help you get rid of the daily hustle and live a peaceful life in your dream home.
Finding the perfect property that has all these facilities is very difficult. Still, if your property is close to public stations and depots and is accessible to cabs and rickshaw drivers, then you can be well connected to other places, as mentioned above.
Also, if you’re buying land in a planned city, you are primarily sorted in this area because the developers take care of your comfort and connectivity.
4. Security
Safety and security go hand in hand when buying a plot. A property should be safe in terms of legal matters and the physical safety of future owners. The property should be in a secure location with a clean history. The property should have proper means of safeguarding the area, like appropriate checks, entry passes good fencing, etc. Security is a must, especially when living with your wife and children. The build of your plot must be with high-quality materials and must have proper finishing so that you feel safe in the warmth of your house.
5. Society/Neighbourhood
This abstract aspect of property buying is wholly undermined. People tend to forget that the society their child lives in will mold their personality and mannerisms. Society encompasses the people who will live around you, influence your lifestyle, and deem things acceptable. Although change is good, You need to find a property in a society whose frequency matches yours, or it gets challenging to adapt, and you lose your essence. The amount of development around your property makes a difference in how secure your plot is. It also decides how your lifestyle would be.
6. Resale Value
When any investor or homebuyer invests in residential or commercial property, they would always think of the value of that particular property 5 to 10 years down the line. While buying property, the investors estimate the resale value to know the worth of the property as it will be a valuable asset for them in the future. The resale value depends on the market trends, location, amenities, current conditions of the property, and many more. Further, the resale value of the property may increase or decrease according to inflation or RERA rules for a particular state/city in India. So think before you leap while buying property for your future investments.
7. Aesthetics
The aesthetic value of your plot is of utmost importance. The environment you live in must be fresh so you live healthily. The surroundings must be clean, the roads must be well maintained, and the presence of trees in your locality is also a bonus point. Both the emotional and physical aspects of your property determine your livability quotient.
All this being said, you must also keep in mind the lighting and ventilation in your house, the amount of privacy you’ll get, the resale value of your plot must be high, etc.
Now that you have everything in mind, you must look for the perfect home. Sure, there will be some shortcomings, but if the pros are heavier than the cons, you can always find a way around them.
Happy House Hunting!