How to choose the right property?
One should buy property in an area which has adequate basic amenities such as
power, water, sewerage, etc. It is important to do your checks and balances while
deciding on a project. Infrastructure in the area, connectivity, builder’s goodwill and
price of the property are key components a buyer needs to take into consideration.
A buyer should also carefully check points such as the builder’s experience, number
of projects completed and delivered, banking institutions involved and present buy
options available to suit your requirements. It is better you conduct a field survey
before identifying a suitable property meeting your budget and location preference.
What do you think is the best way to buy property?
You can choose options from websites. These days all information, including model
apartments, is available on the internet. After this it is important that you or your
relatives visit the sites of shortlisted properties and experience the brand before
booking.
What is the market checklist before buying a re-sale property?
Some important tips one should keep in mind before buying a re-sale property are:
* Locality: Generally, the price difference prevails for different locations but when it
comes to price rise, it will always be proportionate to its strategic placement which
could be linked to accessibility to highways, markets, business districts and overall
living conditions.
There is a price differential between different properties within the same complex or
even the same building. In India vastu compliant units have a premium on them.
Similarly, East or South facing properties fetch better values than North and West
facing properties. Users pay more for a view in urban settings. In Mumbai, for
instance the price per unit rises as you go higher. If the property is sea-facing, there
is a hefty extra that the buyer has to shell out. In other cities, that are not quite used
to high-rises yet, the premium is for the ground to sixth floor. Higher floors do not
command a premium vis-a-vis lower floors. Pool or park facing properties have a
higher value.
The concept of Preferred Location Charges (PLC) for new properties was based
on these principles. Currently, PLC is arbitrary and there are no fixed norms for it.
There are developers who charge a PLC on every unit in the complex, which
defeats logic.
*Area-wise Demand and Supply: Price of properties within a certain area is also
dependent on the volume of supply. Qualities such as good infrastructure, access
to markets and office and entertainment hubs are common to a locality. However,
the volume of units available for sale in the market also determines the prevailing
price. If it is a new growth corridor, the first project to get off the ground normally
comes at a reasonable price. As more developers launch projects, it becomes an
area in demand and the values keep rising steadily, normally by about 8-10 per
cent per year. A developer may break the norm in an existing locality by launching
a project that is richer in features and therefore commands a higher value. Once
there are a couple of projects in a locality that command a higher value, it pushes
the base value up.
Developers too, allow investors to make money by periodically revising values of
projects that are still under construction. Once this new value is released, brokers
and underwriters, small and big investors offload their properties at a value higher
than the original sale price but lower than the new sale price. They thus, book shortterm
profits. This cycle happens at least two to three times during the
development cycle. End users enter towards the end of the cycle and purchase at
values that are at least 50 per cent higher than the original sale price. However,
with very little holding time, they get to buy very close to possession.
If you are buying on a corridor where there are several projects, check on price
and specifications of multiple projects to get the best deal. If there is more stock
than demand, you have a better chance of negotiating a better value in the
secondary market.
* Builder/Developer: Check the builder’s track record, his financial strength, his ability
to deliver on time, construction quality and the payment terms, especially in the
case of a local builder.
When is the best stage to buy?
If you have the required finances, ready-to-move-in is the ideal option for a home
buyer. For an investor, a ready-to-move-in property is feasible for business as he can
buy and put it up for lease without any waiting period. Whereas, a house under
construction eases the financial burden wherein you can finance your property
through bank loans and pay less cash upfront. The downside of this type of property is
that possession will happen only after a certain time period. If you are a new investor
with limited finances, look for an under-construction property with a suitable payment
plan and keep a horizon of 2-3 years for possession. But make sure you go for a
reputed builder.
How do you choose the right type of property?
Depending on the chosen budget, one can decide the type of property. If you are
an end-user, the size of your family, along with the budget can be a determining
factor while choosing the type of house you need. There is a wide range to choose
from today as the market abounds in various housing formats – from 1, 2, 3 and 4BHK
apartments, to studios, villas and row houses, to builder floors and independent
houses. Multi-storey projects and townships with all amenities in one project –
clubhouse, swimming pool, meditation center, health clubs, departmental stores,
schools, cinemas, sports facilities, banquet/party halls are what most end-users are
looking at today.
What are the documents you need to check before buying?
* Check for proper conveyance of title in favour of the builder.
* Check the licence/development right/approvals of the builder.
* Check clear and marketable title of the project.
* Ensure execution of proper Allotment Letter/Sale Agreements on your payments.
* Ensure whether reputed financial companies approve the project. This will help you
in getting financial loans.
*Check the tentative layout/building plan and verify the plinth area of the
apartment. It is advisable to check the carpet area of the apartment and find out
if the difference between plinth area and carpet area is reasonable.
*Ask for Occupation/Completion Certificate.
* Ensure the Conveyance Deed is registered after the entire payment has been
made.
*For buying a property you need to check Deed of Conveyance, Mutation
Certificate (for complete property), Land Registration Status, Sanction Plan, Search
Report and Payment Schedule (for under construction). It is a must that you go
through all the documents relating to the origin of the property, chain of Title,
Occupancy Certificate, sanctions from various authorities dealing with building
plans, fire safety and Completion Certificate.
* For re-sale property, check demand notice relating to renovation, tax dues and
latest receipts of payments made towards various out-goings such as water,
electricity and ground rent.
Which is good for investment – plot or flat?
If you are a long-term investor, say 5-10 years, a plot is the best option. If you want
annual returns to manage a part of EMIs, flats are better.
What is a better investment – city or suburb?
Ideally, it is always better to invest when land cost as a percentage to sale price is 15
to 20 per cent, so that it grows. With land cost being very high within cities, hovering at
approximately Rs 7,000-14,000 per sq m, it is always better to invest in growing
corridors depending on whether you want for pure investment or want to move in.
One should buy property in an area which has adequate basic amenities such as
power, water, sewerage, etc. It is important to do your checks and balances while
deciding on a project. Infrastructure in the area, connectivity, builder’s goodwill and
price of the property are key components a buyer needs to take into consideration.
A buyer should also carefully check points such as the builder’s experience, number
of projects completed and delivered, banking institutions involved and present buy
options available to suit your requirements. It is better you conduct a field survey
before identifying a suitable property meeting your budget and location preference.
What do you think is the best way to buy property?
You can choose options from websites. These days all information, including model
apartments, is available on the internet. After this it is important that you or your
relatives visit the sites of shortlisted properties and experience the brand before
booking.
What is the market checklist before buying a re-sale property?
Some important tips one should keep in mind before buying a re-sale property are:
* Locality: Generally, the price difference prevails for different locations but when it
comes to price rise, it will always be proportionate to its strategic placement which
could be linked to accessibility to highways, markets, business districts and overall
living conditions.
There is a price differential between different properties within the same complex or
even the same building. In India vastu compliant units have a premium on them.
Similarly, East or South facing properties fetch better values than North and West
facing properties. Users pay more for a view in urban settings. In Mumbai, for
instance the price per unit rises as you go higher. If the property is sea-facing, there
is a hefty extra that the buyer has to shell out. In other cities, that are not quite used
to high-rises yet, the premium is for the ground to sixth floor. Higher floors do not
command a premium vis-a-vis lower floors. Pool or park facing properties have a
higher value.
The concept of Preferred Location Charges (PLC) for new properties was based
on these principles. Currently, PLC is arbitrary and there are no fixed norms for it.
There are developers who charge a PLC on every unit in the complex, which
defeats logic.
*Area-wise Demand and Supply: Price of properties within a certain area is also
dependent on the volume of supply. Qualities such as good infrastructure, access
to markets and office and entertainment hubs are common to a locality. However,
the volume of units available for sale in the market also determines the prevailing
price. If it is a new growth corridor, the first project to get off the ground normally
comes at a reasonable price. As more developers launch projects, it becomes an
area in demand and the values keep rising steadily, normally by about 8-10 per
cent per year. A developer may break the norm in an existing locality by launching
a project that is richer in features and therefore commands a higher value. Once
there are a couple of projects in a locality that command a higher value, it pushes
the base value up.
Developers too, allow investors to make money by periodically revising values of
projects that are still under construction. Once this new value is released, brokers
and underwriters, small and big investors offload their properties at a value higher
than the original sale price but lower than the new sale price. They thus, book shortterm
profits. This cycle happens at least two to three times during the
development cycle. End users enter towards the end of the cycle and purchase at
values that are at least 50 per cent higher than the original sale price. However,
with very little holding time, they get to buy very close to possession.
If you are buying on a corridor where there are several projects, check on price
and specifications of multiple projects to get the best deal. If there is more stock
than demand, you have a better chance of negotiating a better value in the
secondary market.
* Builder/Developer: Check the builder’s track record, his financial strength, his ability
to deliver on time, construction quality and the payment terms, especially in the
case of a local builder.
When is the best stage to buy?
If you have the required finances, ready-to-move-in is the ideal option for a home
buyer. For an investor, a ready-to-move-in property is feasible for business as he can
buy and put it up for lease without any waiting period. Whereas, a house under
construction eases the financial burden wherein you can finance your property
through bank loans and pay less cash upfront. The downside of this type of property is
that possession will happen only after a certain time period. If you are a new investor
with limited finances, look for an under-construction property with a suitable payment
plan and keep a horizon of 2-3 years for possession. But make sure you go for a
reputed builder.
How do you choose the right type of property?
Depending on the chosen budget, one can decide the type of property. If you are
an end-user, the size of your family, along with the budget can be a determining
factor while choosing the type of house you need. There is a wide range to choose
from today as the market abounds in various housing formats – from 1, 2, 3 and 4BHK
apartments, to studios, villas and row houses, to builder floors and independent
houses. Multi-storey projects and townships with all amenities in one project –
clubhouse, swimming pool, meditation center, health clubs, departmental stores,
schools, cinemas, sports facilities, banquet/party halls are what most end-users are
looking at today.
What are the documents you need to check before buying?
* Check for proper conveyance of title in favour of the builder.
* Check the licence/development right/approvals of the builder.
* Check clear and marketable title of the project.
* Ensure execution of proper Allotment Letter/Sale Agreements on your payments.
* Ensure whether reputed financial companies approve the project. This will help you
in getting financial loans.
*Check the tentative layout/building plan and verify the plinth area of the
apartment. It is advisable to check the carpet area of the apartment and find out
if the difference between plinth area and carpet area is reasonable.
*Ask for Occupation/Completion Certificate.
* Ensure the Conveyance Deed is registered after the entire payment has been
made.
*For buying a property you need to check Deed of Conveyance, Mutation
Certificate (for complete property), Land Registration Status, Sanction Plan, Search
Report and Payment Schedule (for under construction). It is a must that you go
through all the documents relating to the origin of the property, chain of Title,
Occupancy Certificate, sanctions from various authorities dealing with building
plans, fire safety and Completion Certificate.
* For re-sale property, check demand notice relating to renovation, tax dues and
latest receipts of payments made towards various out-goings such as water,
electricity and ground rent.
Which is good for investment – plot or flat?
If you are a long-term investor, say 5-10 years, a plot is the best option. If you want
annual returns to manage a part of EMIs, flats are better.
What is a better investment – city or suburb?
Ideally, it is always better to invest when land cost as a percentage to sale price is 15
to 20 per cent, so that it grows. With land cost being very high within cities, hovering at
approximately Rs 7,000-14,000 per sq m, it is always better to invest in growing
corridors depending on whether you want for pure investment or want to move in.
