Buying a home is not an easy job and due care must be exercised before doing so. More because a home is usually the most expensive investment we ever make in our life.
Real estate has finally started showing sings of revival, and before the prices of property start going up again, it may be the best time to buy a property, particularly one’s dream home. However, buying a home is not an easy job and due care must be exercised before doing so. More because a home is usually the most expensive investment we ever make in our life, and any mistake on our part can prove very costly for us.
Keeping this in view, here’s a look at some of the important things which must be taken into consideration while buying a home:
1. Credibility of the builder
The first thing to do while buying a property is to look at the credibility of the builder, his past record as well as his financial position to deliver the project on time. This is essential in view of several cases of project delays. Also, the piece of land in question may be under litigation. Hence, it is recommended that one should do an extensive verification of the builder in terms of his credentials. A person could verify its past or current projects or even post queries on the various online real estate forums to see the buyers’ reactions.
2. Approval and Licences
Is the project where you are planning to buy your dream home has got all the necessary approvals and clearances from the concerned authorities? Also, has the builder got all the documents pertaining to the project as well as project approvals such as title deed, encumbrance, Release Certificate, property tax receipts, land use, fire approvals, among others? These are the essential documents you should check before investing in any property. Along with these documents, land use verification, RERA Certification as per the city master plan for the plot, etc, are also mandatory.
3. Cost of Property
There are several factors that escalate the total cost of property – internal/external development fees, preferential location charges, parking / club/ statutory charges, among others. The total cost of the property significantly affects the consumers’ decision to buy a property. Hence, before purchasing a property, all the facts and figures regarding the property cost ought to be cleared by the builder and there shouldn’t be any hidden cost.
4. Location of the project and amenities provided
Location plays a vital role in determining the present and future valuation of any project. Therefore, a prime location — closer to recreational and shopping centres, schools, hospitals, economic parks, bus stops, etc — should always be favoured and be an instrumental factor in decision making.
5. Infrastructure Plans
Metro connectivity or any other big infrastructure development in the future linked to the location of the property one intends to purchase can boost the return on investment tremendously. Also, a person needs to ensure that the property is not close to any polluting industry.
These are some of the important factors which must be taken into account while buying a home.
(By Dhiraj Jain, Director, Mahagun Group)