The renowned statesman and 32nd President of the United States, Franklin D Roosevelt had once said, “Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”
Real estate investment is indeed one of the best investments, more secure and beneficial in the long run than investing in the stock market. Many market experts in fact consider it to be the best long-term investment with numerous benefits, provided one invests in the right real estate property.
A poor property investment decision will be a bad investment. Thus, it is important to stay cautious and take into consideration various factors before deciding to invest in a real estate property.
Investing in a real estate property in Hyderabad makes sense as the future real estate market in Hyderabad looks exceedingly bright. How good the future real estate market in Hyderabad will be can be estimated from reports that reveal the real estate prices are expected to rise in the coming days as Hyderabad real estate offers excellent affordability without in any way compromising on quality and provision of amenities.
Similarly, market analysts believe that the real estate market in Vijayawada and other top Tier-2 cities will spur the future growth of the realty market in India. In recent days, the city has been witnessing strong economic activities which could elevate the real estate market in Vijayawada to the next level in the coming days.
To help you with the task, a real estate property consultant is best hired to guide you on the right path and also assist you to understand the true worth of the real estate property value.
10 Things to keep in mind
Buying a property entails huge investment.
To help you invest in the right property, here are ten things to keep in mind when buying it.
Set your budget
The first thing you need to do when looking to buy a property is the budget.
You need to plan properly for it.
- Make a note of your sources of income and all expenses for the month. Then work out how much amount you will be likely left with each month, after you have met all the expenses.
- Check your savings and other investments to find out how much amount you can manage for the property down payment.
- Calculate the expenditure you will be ready to bear for the property.
Also, keep in mind that besides the base price of the property, you will have to bear the costs of registering the property and stamp duty tax; monthly electricity, water, and other maintenance charges; and costs of fittings. In addition, there are other charges levied by the State Government on properties that needs to be paid for; like for instance, external development costs for maintaining roads, sewage and street lights, etc.
Hire a Real Estate Property Consultant
Once you’re clear about your budget and how you will pay to buy the property, next up you need to select a professional real estate property consultant.
Buying a property is a complicated task that consumes a lot of time. Hiring a professional real estate property consultant will give you access to insider knowledge of the real estate market; best investment opportunities available with precise details about the real estate property value; and expert price guidance.
Besides, property consultants have professional networks present in different cities. With the help of these networks, they effectively guide their clients, thereby saving their time and money. Eventually, as a client, you stand to benefit from purchasing the right property that is well within your budget.
Hire a Lawyer
Real estate property contracts can be complicated with legal jargon that you will never have heard of before.
Hence, when you hire a real estate property consultant, you also need to hire a lawyer with strong proficiency in legal matters involving real estate.
After you have chosen a property and finalized the cost of the property with the owner or developer, your lawyer will come into the picture.
The lawyer will
- Read over your property contract and make sure that you understand the property’s terms and conditions.
- Go through all the documents and check to ensure that they contain the relevant details and meet the desired requirements.
- Make sure that the property purchase process goes off smoothly; and you sign an agreement that will benefit you.
- Make sure that the paper work is in proper order and filed correctly. This will leave you free to focus on other property matters of greater relevance.
A real estate lawyer will protect your interests and offer sound legal guidance throughout the property purchase process.
Get-In-Touch with the Banks
If you are buying a property in the process of being constructed, you should contact the banks with whom the owner or developer of the property are associated with, to cross-check their reliability.
Additionally, you will also need to ask the banks to
- Examine the complete blueprint of the property to check if the developer has total ownership of it or not.
- Check whether the property land you will be using has been cleared as non-agricultural (NA) land or not; and the requisite No-Objection Certificate (NOC) given by the owner of the property to the ban has been compiled with properly.
It is only after these formalities are completed, will it be possible to decide the various modes of paying the owner/developer of the property.
Check if the property has approvals
It is important to know about the title of the property you’re looking to buy, and the status of its approvals and permissions.
Banks and some agencies undertake this work for a small fee. Get your bank to do this work and if everything is in order, you will succeed in getting a property loan as well. In case, there is something wrong, you can avoid buying the property else your loan request may be rejected.
Comply with the process of ‘Due Diligence’
After you have settled for a price for the property with its owner/developer, you should ask your lawyer to thoroughly survey all the documents and files required for the deal, before the actual purchase has been compiled with; and whether there is a mortgage or legal disputes on the property.
Legally, only the owner with whom you interact with has absolute claims on the property; and is liable to pay the property tax.
In case, the property is owned by many people, then they will all have to be involved in the deal.
Check the ‘Agreement to Sell’
Check the ‘Agreement to Sell’ prepared by the property owner’s lawyers, thoroughly.
The agreement will mention in detail the
- Type of property you are buying;
- Location of the property;
- Amount of advance money or security deposit you will be paying;
- Date on which you will have to pay the total amount to the property owner;
- Date on which you will become the owner of the property; &
- Likely actions that will be initiated against you or the property owner, in case the property contract is violated in any manner.
Sale Deed
According to the Registration Act, sale deed is the most important legal document for both the owner as well as the buyer of the property.
The sale deed will contain all the relevant details including the name of the parties to the deal; and other relevant facts related to the property deal.
Before putting your signature on the sale deed document, get your lawyer to check the deed to the last detail and make sure that all the relevant details are included in the deed.
Property Insurance
It is important that the property you are buying is insured. Property insurance will help to cushion any loss you may incur in the event of its damage or destruction from natural disasters or other unforeseen contingencies like riots, etc.
Many banks and finance companies offer property insurance policies. Check the cost of insurance to be paid and formalities to be compiled with before finalizing the property insurance contract.
Check the Property Resale Value
When you buy a property, you also need to find out about its resale value. This will come in handy when you look to sell the property later.
Your real estate property consultant will assist you in this regard with all the relevant details regarding the resale value and also guide you when will be the best time to sell if you look to sell off the property.
