Buying a home means the fulfilment of a dream. As expected, emotions are pitched high. But it also involves a big investment. Instead of making haste to grab a lucrative deal, one should exercise restraint. Before making a purchase, conduct thorough checks in order to ensure the investment remains safe and secure.
To begin with, find out if the project is under RERA. The Real Estate Regulation Act (RERA) ensures timely delivery by preventing the builder from syphoning off funds to launch other projects. As of now, all states have not implemented RERA. Besides, all projects are not covered by RERA. Get updates regarding the prevalent norms under RERA before buying a property.
Also of prime importance is the verification of the builder and his credentials. Check his past projects to find out if he has delivered within timelines. Employ social media tools to find out whether buyers have lodged any complaints against the builder. Verification of his reputation is a serious matter because many builders abscond after launching projects. In the wake of demonetisation, some builders have introduced subvention schemes, buyback schemes, and assured return schemes to lure buyers. Make sure you examine the tall promises before reaching a decision.
Make it a point to visit the location and find out details about the infrastructure of the project. Location is a key factor that determines the appreciation value of the asset. Moreover, a buyer should seek a property in a prime locality or a growing belt with necessary facilities.
Title of the property should be an important area of investigation. Find out if the project is approved by banks. Check the title of the property and find out if all the relevant papers are available. Make an independent investigation to dig up the ownership details and also know if there is any litigation involved. When builders enter into tie-ups with banks, the land details are thoroughly checked. This makes it a safe investment option.
Before you finalise the deal with the builder, assess your eligibility for the loan. Talk to the bank or financial services people. Be realistic about your repayment capacity. Know whether the EMI is affordable or not. Do not burden yourself with higher repayment and cap all home purchase expenses to 35 percent of your total income.
Make it a point to know additional cost related to the purchase. Registration, stamp duty, and brokerage can escalate the budget by 10 percent. Also, know the maintenance charges. This will provide a complete picture of the final cost of the property.
Super built area
Carpet area is another tricky part. Builders tend to cheat buyers in the name of the super area of the project. Super area includes common facilities used by all residents like elevators, staircases, lobby and corridors. These facilities cover 25 percent of the super area mentioned by the builder.
Some builders offer freebies to attract buyers. Free wood work, modular kitchen, appliances and white goods. But all this is included in the price of the property. Realise nothing is free and you are paying for it. Stay away from such attractions and promotional schemes.
While buying a house is a major achievement in life, there is no denying the fact that the buyer has to do a lot of groundwork for his own good.