10 things to check before buying a home
Many of us have grown up with the dream of building or buying our very own dream home. Some people fancy having a mansion while for others, having a posh apartment in one of the best residential projects in Mumbai is the ultimate desire. But as it is one of the largest investments one can make, it is imperative for home buyers to carefully evaluate every single detail, from costs, government policies, taxes to the loan plans.
Therefore, to make the entire process less stressful, we at Piramal Realty have put together a checklist for you.
Good research gets one closer to their dream home, effectively and quickly. Days are gone when the home buying decision was largely influenced by real estate agents. But, today is the age of developers, giving their potential investors a virtual walkthrough while social media platforms define their buying decisions, giving them a unique buying experience.
Now, one can evaluate and compare commercial/residential property for sale on the basis of individual criteria and requirement. In present times, latest amenities the project offer majorly drive the investment decision of the buyer. However, there are numerous other factors that come into play as well. Also online, one can easily gather information about property prices, processes of acquiring a property, documents required during the transactions.
It is advisable to check the basic amenities, like the plumbing, construction, and safe electrical connections. It always makes more sense to weigh the pros and cons before acquiring the property than realising them post-occupation.
The concept of luxury living is witnessing a paradigm shift. In present times, as the real estate industry goes through a strong resurgence, the one thing that has remained constant is the importance of project locations. A prime location, closer to economic parks, recreational centres, educational institutes, and hospitals should always be favoured and be an instrumental factor during decision-making.
3. Evaluate lifestyle needs
Today, mostly, lifestyle needs to govern the decision to invest in a home. Hence, before making a final investment, we need to consider several factors such as the residential location, amenities, views, infrastructure status, surroundings. Other than that, proximity to commercial and recreational centres, transportation facilities, potential capital appreciation, developer, and most importantly, the budget are some of the factors one should take into account.
4. Financial Assessment and Availability of Capital
After taking into consideration the above mentioned key factors, one should carefully analyse their budget, value for money and address the financial commitment during purchase, construction and post-occupation.
It is vital to remember that the total cost doesn’t only include the Agreement Value. There has to be provision for taxes like GST, stamp duty and registration charges and common area maintenance costs. Miscellaneous costs such as parking, corpus, legal charges et al. should also be taken into consideration.
Besides, today, lack of financial resources does not withhold an investment decision. There are multiple banks and NBFCs which offer home loans and attractive schemes in tie-up with the developer. Home investors today can choose from the array of schemes and policies which are safeguarded by insurance in case of unforeseen incidents.
5. Investment Purpose
Buying a property is an attractive investment proposition. To start with, it is essential to understand the investment purpose. Utility and sentiments – these are two major factors that influence the decision to invest in a home for personal use. However, when one buys a home for investment purpose, these aspects don’t play a vital role. Scope of asset appreciation, legal status and foreseeing the market dynamics should be properly considered before the final investment decision is made.
6. Additional Costs
After the buyer completely understands the crux of the property acquiring cost, they also need to consider the post-occupation cost. There needs to be a provision for the later costs which accrue from various expenses like fit-out costs, interior costs, maintenance costs, property insurance if any, mortgage payments in case of the loan availed.
Once the financial requirements are in place, buyers must ensure that they have acquired all the necessary documents. Furthermore, they should also be aware of their rights which are assured by various government policies.
Some of the essential documents which must always be acquired/evaluated by the buyer without fail before property occupation are:
- Detailed cost estimates
- Approved plan of construction
- Allotment letter from the builder
- Sanctioned building plan
- Sales and conveyance deed
- Extension and licence for construction
- NOC from all relevant authorities
- Valuation report from the architect
8. Understanding the impact of the Real Estate (Regulation and Development) Act 2016
After the implementation of RERA, the developers are required to register with the authority and upload every detail of the projects. This includes title, approvals, agreements, delivery dates, payment schedules, finish, etc. This way, the buyer gets a good insight into the project before making a purchase decision.
The following information, amongst others, will be available on the RERA portal:
- Approved Layout Plan
- Building plan sanctioned by statutory authority
- Title documents and Title Report
- Approvals including permission to commence construction i.e. Commencement Certificate
- Detailed cost estimate/valuation report from chartered engineer/architect (if applicable)
- Building Layout, configurations and details of units including details of the unit sold
- List of Common Area Amenities and Facilities that will be provided
- Details of consultants on the project and registered channel partners/relevant associations
- Litigations, if any
9. Customer Protection
Implementation of RERA has made the industry extremely transparent and ensure customer protection. This has further helped in gaining customer trust. The government of India is taking multiple steps that shall take the industry a long way, promoting growth and higher investment numbers.
10. Post-Possession Know-How
The process does not end as soon as the housing unit is purchased. One needs to be careful also post possession. It is essential to make sure all the relevant paperwork/official documents are updated with the new details.
To sum it up, buying a home comes with a lot of emotions and lifelong security. Hence, buyers need to acknowledge the magnitude of this and do the due diligence required to carefully plan their decisions and secure the deal for one of the best residential properties for sale in Mumbai. This way, they will be able to fully enjoy the perks of being a homeowner.