5 things to consider before buying a home

Published: November 30, 2018 3:48 PM

When it comes to investing in a home, a buyer’s decision is based on who gives him value for money by addressing customized requirements at an affordable price point.

real estate, real estate investment, home buying, RERA, GST, propertyIn a price-conscious country like India, the price of a property plays a key role in the final buying decision.

Launch of the new RERA guidelines and regulations coupled with the RBI’s decision to keep the repo rates unchanged or at minimum have helped bolster the buying and selling equation among home buyers, real estate developers and investors at large by assuring delivery of affordable development and housing, improving the market sentiment in a big way. When it comes to investing in a home, a buyer’s decision is based on who gives him value for money by addressing customized requirements at an affordable price point. Though this is a good way of looking at property investments, buyers should also adopt a long-time perspective to ensure the accruement of maximum benefits.

There are various factors like personal priorities, future planning, pricing, location, amenities, market forecast, convenience, discounts and offers, quality and credibility of the developer, and lifestyle, among others, that influence an individual when making the final buying decision. Some of the key factors that contribute immensely to purchase decisions are elaborated below.

Pricing: In a price-conscious country like India, the price of a property plays a key role in the final buying decision. Being a capital-intensive buy, pricing of the property directly affects an individual’s finances in the long term, making them more vigilant and careful. Buyers look for the maximum value for money and try to cover as many amenities and services when making the final purchase. It is important to check for costs that are beyond the overarching cost. It is especially critical for individuals purchasing with loans to ensure the underlying costs like maintenance, utilities, bills, travel, and others are well budgeted and accounted for before investing.

Amenities and Comfort: When purchasing, many consumers look for properties in localities and cities where they see professional growth, lifestyle maintenance and ease of reach. The trend of residential colonies is fast taking precedence with their myriad integrated amenities like swimming pools, recreational areas, designated sports facilities, clubhouses, groceries, general stores, hospitals and other convenience factors. Individuals look for a community home of likeminded individuals. It is important to ensure the basic essentials are within the reach when buying a property, more when the purchase is for personal use.

Market Forecast: Since buying a property is most often a future planning investment, it is essential that consumers are well versed of the market, economy and local forecast. Property, if invested right, will prove to be a beneficial spend, providing appreciation through the years.

Quality and Credibility of Developer/Seller: When investing, it is paramount you do a thorough research on the seller or developer you are going to buy the property from. With the recent RERA guidelines and regulations, buying properties with cleared paperwork and permissions has become more reliable. However, it is also important to do a reference and review check before investing. Buyers should consider projects by reputed sources with an established financial statue and reputed track record. They should also have the capacity to comply with RERA norms.

Additional Perks: Post vetting, look for additional perks and incentives when buying. One of the most obvious are the discounts and savings offered by developers and realtors during the festive season. Some even offer perks and incentives like free parking, waived off registration fees, and more. Only after a comparative study of these additional ones, you should go ahead and book a property.

(By H P Rama Reddy, Chairman, Reliaable Developers)

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