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Points to Consider Before Buying a Property

Discussion in 'Real Estate Discussions' started by sudheerreddy, Nov 4, 2015.

  1. sudheerreddy New Member

    Whether you want to buy a house to live in or for investment, there is lots to consider. Study the basic questions to be answered before making a purchase. Read More at mahidharafortunecity.com/blog/points-to-consider-before-buying-a-property
    real_buzz likes this.
  2. Pooja Rajwade Member

    Good post.
  3. Ritu Mehta Member

    12 things I wish I knew before buying a home

    1. You don't have to own your home

    There is a fundamental question in whether owning a home actually makes sense for your particular circumstances. Some people will tell you that paying rent is throwing money away, but there are many benefits to renting, particularly if you move around a lot.

    2. The advice your uncle gave you is not a law to abide by

    As soon as you announce that you're looking to buy property, you can expect friends and family to come out of the woodwork with all their well-intentioned advice. Remember that principles that may have been true in the past don't necessarily continue to be so in the changeable property market.

    3. Take the time to sniff out any issues with the property

    Smell for mould, and animal-related odors. Knock on walls to see if they sound hollow. Open the dryer and the dishwasher – you never know if pests are living in there. Does the toilet flush properly? Does the heating/air-conditioning work? Is the flue functioning above the fireplace? Is the water pressure okay?

    4. Work with experienced professionals

    Hire the most thorough, licensed home inspector you can find to pinpoint any issues that could potentially end up becoming costly repairs. To avoid conflict, make sure your lawyer is not also representing the seller.

    5. Use your head, not your heart

    Don't be afraid to walk away from a bad deal. There will be other properties, maybe even better ones. Remember that this is a financial transaction and that your terms must be met.

    6. Negotiate as much as you can

    You can use an agent to do the negotiating for you, but you can't be sure how hard they will push for you. As a buyer, you should feel in control and as though you have nothing to lose through robust negotiation.

    7. Don't let yourself feel pressured

    Real estate agents are expert salespeople. They may get you to rush over to the 'perfect' property and urge you to make an offer before someone else snatches it up. If you feel rushed at all, then back away. Time is on your side.

    8. Carefully consider what you can really afford

    Determine your budget based on what you can afford to repay now, not the maximum you're allowed to borrow.

    9. Gardens and yards are work

    Almost everyone likes the idea of having a garden, but if you're not used to maintaining one, you might want to think twice about whether you want to spend your weekends weeding and mowing the lawn.

    10. Buy a property you can afford now, not later

    Even if you're pretty certain that you'll be earning more in a year or two, you might also find that circumstances increase the other expenses in your life. Children, schools, new cars and travel plans are substantial costs. Make sure there will be room in your budget for you to live the life you want.

    11. Select an agent carefully

    Prepare questions in advance of a meeting. Find out what kind of experience they have, how many buyers they are representing and if they can share any references. Speak to a few different agents before deciding on one.

    12. The search can take longer than you think

    Don't operate on someone else's timeline and don't make commitments that will make things challenging if your property hunt takes a few months longer than you anticipated. If you're renting, stay on a month-to-month agreement so that you are able to move without penalty.
  4. Ranu Member

    Guidelines, to make the most of your property investment:

    • Understand the property cycle, to identify the best entry point.
    • Leasehold titles issued by the government must be fathomed.
    • The investor needs to have a clear comprehension of unearned increase or capital gain and quantum of stamp duty that needs to be paid.
    • Check the quality of the development because poor design and construction are common when the markets are depressed.
    • The project’s development plans and all statutory approvals, should be in place. If the approvals are not yet in place, the investor should monitor them closely during the investment cycle.
    • Check the credibility and track record of the developer and his arrangement for finance to complete the project, as even reputed developers have failed to deliver under the current market conditions.
    • Enlist a reputed legal firm to carry out the due diligence on the property’s title. One can no longer rely solely on the due diligence of home loan firms, as they have targets just like developers.
    • Understand the implications of the size and dimensions of the plot/apartment. Small plots or apartments may cost less but they may be difficult to sell.
    • The location of the project may be important but so is the location of the plot or the apartment within the complex. Investors should avoid buying flats on the top floors of high-rise buildings, as the floor-rise charges will add to the cost.
    • The price of the development, should be lower than the last peak (in 2008). However, exceptions can be made for quality, delivery date and location.
    • The time frame for getting possession of the property and conveyance of land, must be explicitly clear.
    • The penalties in case of delays, must be well understood.
    • The investor must know the difference between soft launch, launch and current price of the developer. The resale price in completed projects, may be actually cheaper.
    • The investor must understand all the clauses in the sale agreement along with the transfer charges that may applicable, in case he wishes to sell the apartment during its construction. He should also establish whether the agreement value includes the cost of all amenities, parking, etc., or whether these are to be paid separately.
    • The investor should compare the project with others, based on its carpet area rate.
  5. SD Groupkol Member

    Great Info.

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