One of the most crucial decisions a person will ever make is whether to buy a home. One must ensure that they thoroughly review all paperwork before making an investment in order to protect themselves from the dishonest practises. Investing in real estate is one of the finest ways to make money today, provided you pick the correct property. Given how much money goes into creating this asset, a bad property investment selection might have a negative impact on your financial stability.
In this article, we will discuss about the ten major factors that you should consider before investing in a property also, to make the process easier for you, we have included a list of the legal documents that are generally needed to buy a property in India,
Things that you should consider before buying a property
1. Location of the property
Due to their rapid appreciation, properties in certain areas end up being more profitable over time. The price of the property practically maintains the same, despite the slower development of neighbouring neighbourhoods. The amount of rent that is paid depends on the locality. It might be difficult for many people to afford a home in an established neighbourhood. Picking the location that will probably prosper in a few months or a year or two is the next best option. You must carefully examine a potential investment before making a decision and assess its growth prospects.
2. Construction quality of the property
Whether you are purchasing an apartment from an independent builder or one that is a part of a residential community, it is imperative to assess the quality of the building’s construction. Although many builders create homes with appealing exteriors, the materials they employ to build them are of inferior quality. Avoid being duped by such designs.
3. Water and electricity supply in the area
Precisely speaking, no amount of opulent, fully furnished home will make you feel comfortable if there are persistent power outages and a shortage of clean water in the region. This may be very frustrating, especially if you want to live alone. This is because there won’t be any backup power and inverters can’t sustain big loads for long. So, one of the first things you should do is to confirm the availability of the water and electricity in the area.
4. Independent parking space availability
When you’re choosing a home, it is extremely important to cross-check whether parking spaces are offered. In a residential complex, the cost of a flat often includes a parking place. You can choose to purchase more parking, though, if you need it and have the cash. However, you should look more closely at the available parking places if you intend to buy an independent residence before concluding the deal.
5. Other amenities in the area
Additionally, you should take a closer look at the amenities that are offered in the area as you want to live there for a long time or maybe your entire life. You should see if neighbouring necessary facilities like a school, park, hospital, bank, gym, and market are there.
6. The traffic during peak hours at your location
The traffic condition in and around your neighbourhood during rush hour is another crucial element that needs to be taken into account. Regardless of whether you plan to live there or rent it out, you must consider this issue.
7. Re-sale value of the property
This is another extremely important checkpoint on your home-buying checklist that you can’t possibly overlook. You must pay particular attention to the resale value if you are buying the house with the intention of selling it in the future rather than buying it for personal use.
8. Legal guidance before buying the property
Due to the significant cost and risk involved in purchasing property, it is imperative that you seek legal counsel in this scenario. To ensure that house buying remains a smooth procedure for you and in order to prevent any complications later, it is extremely necessary for you to be aware of all the regulations and legal paperwork before buying the property.
9. Background check of the builder
Here’s a dark fact about real estate, there are a lot of builders out there who make untrue claims. Many of them fall short of deadlines for delivering the properties, while others refuse to comply when it comes to completing the documentation for the properties, while yet others don’t deliver buildings of a good durability, and so on. Therefore, before finalising the purchase, it is crucial to conduct a complete background check to learn about the builder’s reputation. While you’re purchasing a property it is therefore always recommended to choose a builder with a solid reputation.
10. Make sure no hidden costs are involved
When buying a house, it is advisable to always obtain some professional assistance. However, you must give the real estate agent or agency a considerable sum of money. You might also have to pay for home inspectors, notaries, lawyers, and other industry experts. This expense must also be considered. If you choose an independent apartment, you might also have to pay for security services. Additionally, yearly property tax payments are required.
Here is a list of documents that are required while purchasing a property,
1. Sales deed
2. Allotment letter
3. Possession letter
4. Khata certificate
5. NOC
6. Payment Receipt
7. General Power of Attorney
8. Rectification deed
9. Copy of Building Plan
10. Occupancy Certificate