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Points To Remember While Investing In Real Estate


In India buying any property is not a piece of cake, it is not only your hard earned money but your dedicatedly saved money, which you have saved by not fulfilling your luxurious requirements, when anyone is making decision of buying a property then it could be stated that an individual is risking his saving of whole life, there might be exceptions in this, but on general terms it could be said that, you are investing your lifetime savings

In many of the cases when an individual is keen to invest in property, he will ignore some questions and facts which are related to property as the property is of his or her choice and you relate your emotions and feelings with that particular property, There could be heavy legal hassles related to property and which could lead to incur heavy expense which are not planned, this could be your best investment or the worst investment of your lifetime and very small mistake could get you into big trouble and lifetime disturbance, dependencies

 

Here are some questions, queries, tips and tricks an individual might use to make their investment beneficial and which could lead to appreciation in your asset value

 

Investment Cause:

 

If you are looking for fast appreciation of property which is for business purpose then you should discuss with the people who had already invested in real estate in that particular location and by this you will get a clear idea of appreciation on property and this communication will be helpful for you in long term investment as well, real estate agents and builders will always push you to buy property they are looking to sale, they will always mention the advantages of real estate which will be highly tempting to the purchaser,

 

So investment on the words of real estate agent or commission agent will erase your requirement and needs to invest into real estate, you should make your own assessment of the amenities in nearby area like school, colleges, railway station, bus stand, airport and hospitals in the nearby area, which could assist you in making a firm decision while investing in real estate.

 


 

Affordability:

In case you are buying the property from a real estate agent and while discussing with him about the real estate, he advices you that this is the most affordable project or property in this area, you are required to check the previous cost of the property as well as take the measurement of flat or plot, price could be less as compared to other flats or property in that area but, the size of the plot will be less as compared to other flats and in proportion to the amount which is being taken from the investor, so less price for a particular real estate property in a posh locality does not mean that you are getting the same amount of property as others have , the price should be compared in sqft rather than considering an overall property cost

 

Price Revision:

 

While discussion with real estate agent and scrutiny of various prices, in case you come across any doubts and you are not ready to solidify your decision of investment in real estate at the moment, you will communicate to the real estate agent that, I am not able to make decision at this moment of time and I need some time, he will instantly advice you that, If you will not take any decision at this time then the prices of the property will be going high and the project is 90% sold out, we have some flats or plots remaining, might be the case that they haven’t sold 10% of the property, but this is the trick played by commission agents and real estate agents to conclude the deal immediately.

 

Partial development:

 

Real estate agents or builders will attract buyers by saying that we are committed to deliver the property or project in time and in case we fail to do so then as per our agreement, we will compensate you, the compensation or clause of penalty is the bait from the real estate agents to the investors or individual buyers, the compensation provided is not near to the Equated Monthly Installment you are paying or are going to pay, compensation will be given on the net price of the property which will not include the charges taken for various other services included in the property which are being charged by the agents, in some cases there are some clause included in the agreement which could be a narrow escape for a real estate agent when he is making a delay in handling over the possession.

 

Sample flats

 

In real estate market it is not everything what you see is what you get, now a days, before making buildings or flats, contractors are making sample flats, these flats are shown to customers and investors are told that this is identical property what you will be receiving after booking the flat

 

For designing these types of flats contractors and builders are hiring expert interior designers, these designers create optical fantasies by placing lighting and furniture and other house hold stuff in such a way that, this flat looks bigger, walls of the sample flats are thinner and like this there could be many illusions are created to make your flat look bigger, investor should check the layout, maps and the measurements properly which is mentioned in the actual drawing, this will give you a fair idea of your property 

 

Booking amount or down payment

After you have gone through the property considering measurement and other related area, then you will be ready for investment, at this moment of time, it is very important to go through  the terms and conditions of the builders or real estate agent, as god forbid you have to revert your decision of purchasing the property due to some unavoidable circumstance, then, you might be looking forward to get back your booking amount or down payment you have done to acquire the property, but in some cases there could be a marginal deduction from the booking amount and this percentage could be on higher side as well, some contractors will not repay you anything as it will be mentioned in their terms and conditions, which has been signed and mutually agreed upon, so it is very important to check the terms and conditions and to make sure that there is no point missing to understand in all respects.


 

Bank Loan or Investment Facilitation

 

Now that investors have decided to invest in real estate, they will require capital investment for funding their requirement, contractors and builders have tie ups with bank to facilitate their customer, real estate agents will advise investors to take their services regarding loans or capital advance, in this case you are required to hire a lawyer or a legal expert to verify the genuineness of the documents in relation to the property.

Sometimes real estate agents will mislead investors by furnishing false statement that interest rates on loans will come down and, but to be on the safe side, investors’ actual calculation should be based upon the current interest rates and while taking loans through references of real estate agents investors should also check some more option or some other banks regarding interest rates.


There are some more points you should keep in mind while indulging in a real estate investment are as below:

 


1) Random Visit

 

 

There could be various reasons that a person should visit the desired location many times a day or a week randomly, to make sure that the place is exactly what it was discussed by the builders or contractors, it could be a quite place in the evening even though there is school nearby, but during school hours the locality could be very noisy, traffic frequency could have variation from the time of visit with the contractor.

 

2) Locality Information

 

 

Investor should try to gather as much information as the person can, the reason behind this that, contractors could cheat by comparing the price of other properties in the area as well the property in which the investor is highly interested , the price of the latter could be low and this could be an appealing point for you, but you should the reason for the same, might be there could be a proposed high tension line nearby to your property or there could be water pollution near your backyard

 

3) Explore neighborhood:

 

Investor should explore his or her neighborhood by discussing with them regarding advantages and disadvantages of the location, what are the loopholes that didn’t avoid while taking possession of their property, is there any society or association to safeguard the interest of the residents, discussion about basic amenities and the luxuries as per the agreement of the contractors will guide you through the living conditions of the people of that particular locality, the area should not be near industrial zone or any other plant which could be a clause of environmental pollution.