Real estate is a tricky industry but investing in it can be a good decision if done wisely. Most people spend all their savings and take loans to purchase a property. So this has to be done with great caution to make sure that the money invested does its work.
Budget is the most important thing you should consider even before you start looking for properties. Keep a budget range in mind and make sure your finances are in order. For many paying EMI leaves their pocket empty by the end of the month. Ensure that your EMI does not exceed 40% of your monthly income.
After your finances are in order, then the next important thing for you to do is your research. You should look for localities which match your requirements. To make this choice you should look out for these factors:
– Accessibility and connectivity
– Presence of social and physical infrastructure
– The proposed infrastructural developments
– Safety and security
One must not invest in areas which lack basic amenities such as road, water supply and drainage system. Never get carried away with the promise of upcoming infrastructural developments and invest your money. Infrastructure projects take time to start off and few even fail to take off. Do not trust simply fake words unless you see proof.
The real estate market is vast and the industry has both reliable and unreliable builders. Do not blindly invest your hard earned money after seeing good offers from a small time builder. Make sure you check the trustworthiness of the builder by checking their previous projects. This will give you a clear idea about the credibility of the builder.
Verify legal documents:
For any property transaction, title deeds play a crucial role. Check whether the seller has a strong title deed of the property, if not do not purchase the property.
• The title deed is a key document for the deal without which you will have legal troubles in the future.
• Make sure you get the original title deed verified with an attorney before buying the property.
• Before acquiring the property, make sure that all the clearances for the property are in place.
• If you are planning to buy an under-construction property, do not forget to get the allotment letter and the development agreement from the builder
• The allotment letter has details such as the price of the property, floor plan, delivery date and liability details if there is any delay in delivering the project. Whereas the development agreement has the details of the terms and conditions under which the landowner allowed the builder to use his property
• Make sure the taxes related to the property are cleared before you buy the asset.
• Never hesitate to get an expert’s assistance if you have doubts.
Amy Anstey for IndiaProperty.com