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| Caution Areas - before you buy property |
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At MoneyMinar, we believe that it takes years to save up but one careless mistake in selecting the property you buy can end up finishing it off in a jiffy. Here are some tips that must be followed to safeguard yourself from property frauds or simply losing your money.
UNDER CONSTRUCTION PROPERTY
1. Look at reliable builders, not necessarily well known ones only. Before deciding on a builder look for financial stability, since only a sound builder will be able to complete the project in case of adverse economic conditions
2. Before deciding, ensure that the land has been purchased / transferred / allotted to the builder. The land papers are available at the builder’s office.
3. Ensure that the builder has sanctions plans and necessary clearances/approvals from the Government.
4. A project where some construction activity has started is likely to be safer
5. Check on the banks providing home loans. Private banks are usually careful in approving a project, and it is only after rigorous due diligence that they decide to fund a project
6. Before selecting a project, find out the hidden costs such as EEC/FFC/IFMS/Lease Rent/ Car parking/Clubs etc.
7. While booking a property ensure you fill the application form yourself, especially the portion having all costs.
8. Ensure you collect a copy of the application form duly stamped by the builder’s office.
9. The most important equation that you need to consider is the ratio of demand to supply in the area. Too much supply or too many upcoming projects could mean excess supply and hence prices may not appreciate for a long time.
10. Always prefer CLP over DOWN PAYMENT plans
READY TO MOVE IN PROPERTY
1. Ensure physical possession of the property is with the seller. Properties that are rented out may be difficult to get vacated later on
2. Before sealing the negotiation deal, check out he sellers expectation around the timelines for full payment and breakup of cash and cheque on the deal
3. Make sure you see the original title papers before making majority payment. It is advisable to take a copy of the papers and engage the services of professional lawyers who do proper title verification with the registrars office.
4. Be sure to check if the construction is authorised if you want to be free of sealing/ demolition worries in the future
5. Decide on end use before making the investment- is it for self use or is it for rental purpose. Incase of rentals, always look for the rental value in the area before making a choice.
One factor that commonly affects the real estate market, whether residential property or commercial, under-construction or ready to move is market volatility. The state of the real estate market, impacts no just the liquidity but also the property prices. The image below depicts the impact of external conditions on property investments.
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| Consult our Real Estate Experts before it too late |
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