Must Read Tips to Carry Out a Sane Property Transaction

Are you looking to purchase a home? Most of the property investment decisions tend to be deeply involved and emotionally charged too, but this must not result in judgement errors. Many people opt to take professional help to take well informed decisions. Here is a quick introduction on what can be done at your end in order to avoid exposing to such errors in general.

1.  Examination of property for quality: When it comes to residential property, you need to self-examine the property regarding the building technicalities which include examination of power, electrical, plumbing, and security system offered by the builder.
2. Builder’s Credibility: Before buying a property, you should investigate the builder’s credibility. This is a mixture of some factors: the builder’s previous projects, their quality of construction, performance in primary and secondary market, their vacancy rates, rate of approval in value, current demands in the markets and number of upcoming projects that are undertaken. All of this will help learn the reputation of builder.
3. Research of Market: A common mistake that people make is of isolating their deals from the market’s environment. The property rates, value appreciation and impacts any investor’s bargaining ability will have on final rates is based on the market’s environment. A detailed study of such market trends can help you to get a practical idea on the final price of the real estate as well as allow you to predict its appreciation rate better.
4. Qualifications for loan: Do ensure that you get yourself prequalified for loan in order that you look for those investment properties only that fall in your budget.
5. Transparency in prices: Thoroughly recheck the costs to be acquired for purchase of property and club the variable costs for the total payment to be done mentioned in the sales deed so that no room is there for any hidden costs involved later. This also will help you negotiate better deal with seller/owner.
6. Growth prospect in terms of resale value: Location tends to be the most vital factor which contributes to the potential value appreciation of a property. Have a look at the ‘communication quotient’ which basically is its connectivity, quality of infrastructure which surrounds this property, market and other amenities like bank-ATMs, medical centers, schools, and so on. These factors impact potential directly in terms of its resale worth.
7. Budget Limitations: Have you considered the percentage you wish to invest in property? For any investment, you need to be very specific about the wealth to be infused within this sector since this is most probable to be one time purchase that will be made in a whole life time. Make sure that the EMI rate does not exceed 30 percent of your monthly income at any cost.
8. Plan off Payment: Before investing money in any property, you should examine the payment options that are available with developer in order that payment can be done as per one’s feasibility. Don’t just forget to estimate the money that is basically the return which you will get on your capital if you simply were to put it in any bank or other saving instrument like FD.
9. Middlemen’s cost: Be wary of influence that a broker or middle-person is getting on the transaction. Though they play a critical role in guiding you through technical aspects, paper works etc. you should be sure that no hidden fine prints are there.
10. Perusal of the property: Check the specification in terms of all promised amenities in as well as around the property, it should be mentioned properly in the agreement.
11.  Design and architecture: Lots of end users look for international patterns and recent trends when design and architecture are considered. So, before you purchase of property, look into the options available you’re your selected developer.
12. Vastu: Looking out at the latest trends in the property market, you can look at the Vastu options also available at the real estate. In case you’ve to incur added expenditure on Vastu correction, this must be factored in the final price.
13. Legal Papers: The worth of legal documents like conveyance deed, title deed, etc are of main priority, which must be taken proper care of before one makes a decision to invest in any property.
14. Transparency: During the purchase of any flat/property, there must be no uncertainty related to the covered area, total built area and super built area. Covered area tends to be the space that is available for flooring carpet, super built area is carpet area including balcony space, wall, and other areas while the total built area is super built area along with the corridor space, alley and garage. The covered area generally is 30 per cent lesser than super built area.
15. Return on Investment: You should always make sure that the ROI i.e. Return on Investments over rent received, is atleast 6% (just to beat inflation) so as to be on favorable side.