What to Do When Investing in Real Estate
Bangalore & Hyderabad Real Estate
Investing in real estate is a big step. Most people spend a significant chunk of their savings when they invest in a property. Not to mention, the heavy loans they take from banks or other financial institutions to manage their expenses.
Therefore, one needs to be really discreet in dealing with these matters. Lack of discernment may mean all these efforts and hard-earned money going kaput.
Mentioned below are some tips that will help you ensure safe investment in the property of your choice:
- To begin with finalise a budget before shortlisting the property. Calculate how much you can shell out for your down payment, monthly installment payments, property tax, insurance, outstanding expenses, and debts. It’s advisable that you look for properties that are within your budget.
- Conduct a market research on properties and do your homework of comparing their costs and interest rates in different localities. In addition, work out your wish list of amenities and facilities that you want on your property. Confirm, if the properties you are looking for match your wish list. Even if you are looking for an affordable property, ensure that the property you pick does not lack the basic amenities like water supply, proper drainage system, and roads, proximity to school and workplace, etc.
- Checking the credentials of the builder is a must. As is widely known, realty sector is full of unreliable people. If you come across a property with amenities that seem too good to be true, avoid investing in such a place before being completely sure about it. Also, visit the past projects completed by the builder and talk to the people residing there about their experience in dealing with the builder.
- If everything is in place apply for the loan and consult with the tax professional for the details of benefits and disadvantages based on the kind of property, your disposable income, expected rate of interest, and tax benefits.
- To prevent any feud over the property in the later run, check if all the legal documents are in place. Firstly, the Title Deed should be verified by a legal expert. A Title Deed provides details about the ownership of the property; it should solely be in the name of the person selling the property to you. Plus, it shouldn’t have any mortgage or liability on it. Also, look out for the Commencement Certificate, which is issued by the local authorities to the builder. Confirm if the building’s layout and plan include everything that you discussed with the builder during negotiations. The last two documents that you need to check are the Completion Certificate and the Occupancy Certificate.
- Post finishing the document verification get the property inspected by a professional and ask him to issue an inspection report for the property. You can also personally check if the property’s plumbing, roof, garage, structural elements, exteriors, attic, and electrical units are all in place.
- Hire legal assistance to oversee the complete property paperwork. In addition, go through the papers yourself and ensure if the clauses are in your favor. Your legal expert will also guide you during the payment process of stamp duty and registration; doing so will help you if in future you decide to take any legal action.
- Lastly, check if the lease deed is in the builder’s name, the statutory approvals for environment, aviation, and fire are proper. Be completely aware of the builder-buyer agreement, penalty clauses-payout, escalation clauses, interest rate reset clauses, and registry costs. If everything is proper, move forward and register the property in your name.
Do remember, investing in an under-construction property is a risk. There are major chances of the project being delayed due to various reasons. It is advisable to verify the background of the builder to know if it is safe to invest in his projects.
Irrespective of the city or type of project (residential or commercial) you are investing in, it is essential to follow the above given tips. So whether you want to buy a residential plot in Hyderabad or villa in Bangalore ensure you take these safety measures to avoid inconvenience.