The real estate sector has recently seen
better performances in recent times, not only in terms of sales but also in
terms of regaining customers’ trust. Just as with any other investment,
investing in real estate also requires the investor to do their homework,
exhaustive research and background check. This pertains to the location of the
property, its surrounding, the general history of the location and its future
prospects as well as the background of the company developing the property and
documentation relating to the project.
Here’s a ready reckoner or checklist to follow
while considering your next investment in property:
Background
of Developer
It is imperative to check the track record of
the developer - the number of properties developed, locations, execution, and
timeliness of delivery of the project. One can also talk to other customers who
have invested in the respective developer’s projects and get to know their
experience.
Project
Location
Location is everything in real estate. A good,
thriving location ensures a steady growth in value of the property as well as
rental and resale values. A number of sources provide ready data and trends
about various locations vis-a-vis their price graphs, rental and resale values,
and demand. Studying such data is useful in making a real estate investment
decision.
Location’s
Growth Prospects
Some areas are in the early stages of their
growth with increasing infrastructure and commercial development, while others
have seen better days. Where are you investing? Is your location of choice
witnessing a phase of growth or decline? Are there plans for upcoming
infrastructure or new business districts? For example, the Bangalore
International Airport in Devanahalli has boosted the growth prospects of this
suburb; more commercial and residential projects have been planned here making
it a prospective location.
Location’s
Social and Civic Amenities
Proximity of schools, hospitals, markets,
business centres and multi-modal transport determine a location’s
attractiveness. Check your prospective location for all these basic and
necessary amenities which will ascertain how comfortable your life in this
place will be. It will also determine the overall value of your investment.
Cost
Benefit of Financial Schemes
Many developers enhance the attractiveness of
a property by offering potential customers numerous financial schemes which aim
to reduce the financial burden of purchase. Evaluate each one to understand its
suitability to your individual financial needs. Some may seem more attractive
but may be less suitable for you. Understand these differences so you can
choose the best scheme suited to you and ensure the most value-based
investment.
Read
the Fine Print
All project offerings have many details
encapsulated in legal language which many of us are not familiar or comfortable
with. Some of these include the declaration by the promoters of the project,
the stated completion time of the project and the legality of the land holding.
Check the documents for these factors and ensure correctness and validity of
all declarations.
RERA
Registration
RERA has been a game changer in real estate
ever since its implementation was enforced on developers. It has empowered
customers and ensured their rights. Check the RERA registration of any project
you are considering investing in and note the registration number. Projects
with RERA certification are considered more attractive to customers as the
developer is required to file numerous documents with the respective state RERA
authority before receiving the RERA number.
Confirm
Little Details
Recently there has been a spate of cases where
homebuyers and investors were still waiting to receive possession from the
developer. In light of such cases, an investor must be prudent about checking
that the affidavit they receive from the developer carries a possession date
and the rate of interest you will receive in case of a default by the
developer.
The more prudent and astute one is while
investing in real estate the better the results. Make the right choices, be
patient, invest for long term, and watch as your real estate investment creates
value and wealth for you. Read more about long-term investment avenues, their
past trends, potential gains and the promising future of realty investment in our latest newsletter - Long-Standing Realty.
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