10 Things First Time Home Buyers should be Careful About
Buying a home is a costly affair and thus involves a lot of planning, research in order to ensure that the individual is not cheated and he has a hassle free investment in the property. Following are the 10 things which a first-time buyer should be always careful about:-
1. Approval and License
Once the properties are shortlisted, individual should check the builder’s paperwork which includes commencement certificate for work, environmental clearance, approved building plans, land titles, title deed, encumbrance certificate, approvals from local body. This helps in ensuring that the land is free from any liability or litigation related matters.
2. List of Banks Financing the Project
Off-late with rising inventory of real estate companies, the banks have become wary of financing them. Thus, not all builders get loans. It is important to cross check with the banks if they are ready to finance the project and an individual should go with the bank offering the lowest rate.
3. Total Cost Calculation
This is one of the things which brokers generally don’t say as they just quote the per sq ft rate or the basic cost. There are additional costs such as internal/external development fees, preferential location charges, parking/club/statutory charges, service tax, etc. These charges shoot up the total cost of the property. It is advisable to always check for the total cost with the builder. With Sancheti Builders in Pune, you get all the information on the costs involved so that you can make an informed decision. This ensures a high degree of professionalism and transparency.
4. Builder Verification
It is always good to do some extensive verification about the builder as many a times they tend to construct a building on lands that may be under litigation.
5. Buy vs Rent
People generally buy thinking they will put the property on rent which will serve the EMI. However, this is a myth as properties generate only 2-3 percent rental yield whereas the EMIs are high. Also, property remains vacant for sometime before finding the right tenant. Thus, it is wise to make a calculative decision on buying a property.
6. Choosing the Right Plan
Multiple payment options are available these days such as down-payment plan, flexi-payment plan, construction-linked plan, and possession-linked plan. You need to choose plan carefully as all plans come with its own cost of convenience.
7. Size of the Apartment
Builders generally show the super built-up area in websites and other marketing related documents. However, this includes common areas such as a staircase, lobby, etc. Carpet area in some cases can be less by 30% of the super built-up area, thus, it is advisable to first understand how much area is required and what the builder is giving finally.
8. Check on Infrastructure
Builders typically mention about a lot of developed infrastructure such as schools, malls, supermart, ATMs, etc. in the vicinity of the project as it improves saleability. It is good to always cross check the same with your requirement at the site and surrounding areas so that the plan is accordingly finalized.
9. Site Visit
The layout provided in marketing materials might vary from the actual reality. Thus, it is advisable to do a thorough site visit before booking the property. Interaction with neighbors around the property is always a good idea.
10. Plot Registration
Once the property is finalized, you should get the property registered in your name to become the rightful owner of it. Professional builders provide proper assistance in the same which makes the process simpler and hassle-free. It’s good to check with the builder on the same.
Last but not the least, one should also do research on the builder’s track record, the total area developed, number of flats sold, government registrations, market opinion, and project delays. One should also check for any possible contingencies that may delay the project and highlight the same with the builder and get a plan B for the same.