Planning to invest in real estate? 10 things to check before buying a flat
To own a real estate asset is on the wish list of almost every investor because of the potential returns it can deliver.Updated: Dec 17, 2019, 18:40 IST
To own a real estate asset is on the wish list of almost every investor because of the potential returns it can deliver. However, in recent past, the sector has lost some sheen due to stalled projects and dwindling returns. It is an investor’s responsibility to put in money in a project only after proper research in order to protect his/her capital.
Here are 10 things a buyer should keep in mind before buying a flat:
1) Location is key to any property investment. Check the chances of value appreciation of your flat by gauging demand of property in the area and upcoming projects in the locality. If you plan to live there yourself, check if it’s close to your workplace, school, etc, since transportation can majorly affect cost of living later.
2) Irrespective of whether you buy the flat for investment or self-use, check whether there are hospitals, malls, educational institutes and entertainment options in the vicinity. In metro cities, also check for connectivity options and public transport as that can boost the return on investment.
3) Check other value-adding facilities available inside the project premises (swimming pool, gymnasium, community halls etc).
4) Check the livable area of the flat. Builders usually mention super built-up area in brochures. This includes common areas such as staircase, lobby, etc. The carpet area of the flat could be much lower. Hence, it’s advisable to ask for the carpet area and see whether it suits your needs.
5) Once you zero in on the flat, shift your focus on the paperwork. Firstly, look for RERA registration as that is the first stamp of approval. RERA approves a project only if it has all approvals from municipal corporation, electricity and water department. So only choose projects registered by RERA.
6) Check legal documents like title deed, occupational certificate etc. Make sure the project is not stuck in any kind of litigation.
7) Check the builder’s reputation. Make sure the builder is financially sound and would be able to deliver the flat on the promised date.
8) Buyers should also check the track record of the builder by assessing the performance of the past or other ongoing projects. It is advisable to avoid builders that have been in trouble in the past over stalled projects or are witnessing a large number of consumer complaints.
9) Buying a flat at the right price is very important. Try and compare the flat prices with others in the vicinity. Find the current market price of the area and compare it with the rates offered to you. Also make sure you are aware of concepts like carpet area, built up area and the super built up area while calculating the price.
10) Calculate the total cost of ownership by taking into account stamp duty, registration charges, etc. Also keep in mind that after you buy the flat, you will have to bear monthly maintenance charges, parking charges, among other things. Make the purchase only if you think you would be comfortable with all such hidden costs.