A quick check-list for new home buyers
Buying a new home can sound like a fun investment activity as it’s known to yield high returns. Just put in the money and then get back more than your initial investment, right when you sell. Well, it’s not as simple as that. Real estate is not a simple commodity that can be bought and sold in minutes. And unlike stocks, it cannot be traded right then and there, when there is a favourable rise in the prices. One needs to understand that there are tons of factors that deem the real estate property worthy of an investment in the first place. There are multiple aspects in which an investor needs to look into, before he/she truly understands whether it’s a suitable investment opportunity or not.
Once you start digging into various details, only then you will understand whether the property you are investing in stands true by the words it is using in its marketing communication. Builders usually tend to exaggerate when presenting information in their marketing material, in order to gain attention and generate more inquiries. There are small details and there big details. But even the small details can be of great importance and most of the times we forget to check on those. So it’s best to keep a close track of all the details and follow up on procuring actual information from the builder or agents.
There are various aspects that come into play when deciding the value of a property. There are multiple background checks to be done on various fronts that give a clear understanding of the property, along with shedding light on the issues the property is facing.
a. RERA Number: Checking Registration Number is a must for every investor as it defines the property’s legalities. This determines whether the property is built under proper circumstances and in compliance with permissions granted for it.
b. Real Estate Builder History: One of the major factors that determine the property’s value is construction quality. The builder’s track record is one of the most effective ways to finding out his/her credit in the market. People who have engaged with the same builder before, may it be partners or customers, are bound to have a good deal of information for you pertaining to construction quality and the builder’s credit.
c. List of Banks Financing the Project: When builders are left with unsold apartments, banks become vary of financing them. There are many builders which do not get bank loans at all. So, once you finalise the property and confirm that all approvals are in place, find out banks which are ready to fund the project and go with the one offering you loan at the lowest rate.
d. Approval and Licences: Once you finalize your property, you need to check the builder's paperwork. Paperwork entails detailed documentation on various aspects ranging from commencement certificate for work to environmental clearances.
Here is a list of documents you should check.
1. Title Deed
2. Release Certificate
3. Verify land use
4. Approvals by Local Body
5. Property Tax Receipts
e. Check Apartment Size: Builders generally mention ‘super built-up area’ in brochures. The main thing you need to verify here is the Carpet Area. It is the area excluding common areas like staircase, lobby etc. The carpet area of the flat could actually be 30 per cent less than the super built-up area. For example, a two-BHK 1,000 square feet flat could actually be just 700-750 square feet.
f. Check Actual Site: When it comes to promoting the project, builders often take the liberty to amp-up their offerings; Project brochures and pamphlets usually contain information that is fabricated and phrased in ways that make it sound very appealing and enticing for customers. But try to read between the lines…It may tell about the reality of what the project has to offer. But it’s best to do a site visit and find out what’s what, and do a cross-check with the information you have.
Theses 6 check points will help you procure maximum information that is available and form a holistic opinion about the project and its builder. This will also help you disclose critical information that is usually withheld by project marketers.
BramhaCorp believes in communicating an idea that changes people’s perception for the better. With today’s markets being littered with fabricated promotional brochures/materials, we take extra efforts in communicating our information in a clean and clear manner. We want customers to make decisions that enhance their living experiences with BramhaCorp. And for that, we ensure they have all the information they need to feel confident in their decision making process. All BramhaCorp marketing material communicates genuine information to all types of buyers and never tampers with the messaging in any sense what so ever.