Wednesday, June 20, 2018

Things to consider while buying a Property

So, finally decided to make a big move or still contemplating whether to take a step forward or not? There are so many things you think about when you want to make the big move of buying your own house. Be it buying a 2-bedroom, duplex, penthouse or a bungalow, its always a big decision.

Every buyer goes through series of questions and to find answers, they have to look at multiple websites, blogs and do a lot of research. There is never a single document which talks about all the facets of buying a property. So today, I’m going to try put all the steps required based on my experiences.

I have been lucky enough to have a chance to experience buying multiple properties, as an investment as well as buying a house to stay in. So, to help save the frustration first time buyers go through, I’m going to try to jot down all the points a buyer might think of before making the big decision.



Before any other questions arise, the most important thing to remember is the reason to buy a property. What are the motivation factors to buy a property?
  • House to stay in
  • Investment
  • Probably both
Let’s try drilling down for all of those options.

If you are buying as an investment,
  • How much are you willing to invest
  • Are you taking any loans?
  • what kind of returns are you expecting?
  • how long can you stay invested to get your returns?
  • can you afford to book a loss?
  • What’s your primary investment goal? Capital appreciation or rental yield? If both of them which one is more important 
Buying a house to stay in,
  • How long do you plan to stay there?
  • How is your job, source of income, do you see a steady cash flow for at least few years?
  • Changes that might happen in future (marriage, have kids, dependent parents moving in with you, in an unfortunate case death of loved one, divorce)
Both (first investment and then some day you plan to stay there or vice versa),
  • In addition to above points
  • Where are you staying right now, with parents, siblings, in a rental home, in company paid accommodation as you are in a transferable job?
  • Define your tentative time line for each activity
Ok, so now you have already decided why to buy and have already answered the above questions, next question will be as to what kind of property – under construction or second sale.

Each have their own pros and cons and everyone person has to weight what is more important for them. An under construction property will be a brand new house and you can get the interiors done as you like without having to demolish anything. But that mean after you pay your initial amount, there can be a long wait. You will start paying your EMI much in advance to actually staying in the house. Some people are ok to do so if they already have a house to stay in or live with your parents or siblings. But if you are renting out your current place, then it can get very expensive as you will be paying rent as well as EMI.

On the flip side, a second sale house might be difficult to find as you will want to find a house which is done to your liking. Its not impossible but it does take a lot of time and effort. When I bought my house, I couldn’t afford paying a rent and EMI, so I decided to buy a second sale property. It did take me 5-6 months to find a house but when I did, it was perfect. I could move in immediately once the paperwork was done.

Be it a first time buyer or a savvy buyer, every buyer has to go through different stages in their buyer’s journey.  Let’s dive a little deeper to understand what to expect at every stage.

Initial iterative stage:

  • At this stage you are really not sure what kind of property you really want and how much money would you need for it
  • You spend at least 60-70 % of the property hunting time in this stage.
    • Money Matters: You don’t have an exact idea how much this property is going to cost and can you manage that money? Note: You will need at least 20-25 % of the property value in cash
    • Selecting a Size/Type/Design: Deciding between 2 bedroom or 3 bedrooms, penthouse or duplex
    • Selecting a Locality:Ask these questions to yourself. How well do you know the locality? How know it well? Is it convenient?Proximity to your lifestyle needs (night life, malls, nature parks, medical facilities, grocery stores)
    • Selecting a Project: Are you fascinated by a particular condo or a complex? Have you got a particular size you are looking for,what are the amenities required?
    • Selecting a Unit: what view are you comfortable with? Garden, swimming pool, parking lots, another building,etc., any religious spiritual things involved.Does it need to be east / north facing, fengshui, vastu shastra, condition of the unit. Amount of repair work
You will go through this stage multiple times until you have found the right property. This iterative stage stops only when you have identified the property. But remember to use a top down approach – identify budget, then size type, the locality, the project and finally unit.

After this comes the closing stage.

  • You have identified the property, more or less comfortable with money matter and actively reaching final agreement with the seller
  • Before you start negotiating, make sure you have done a thorough research on the market price. Also, check what price the other units were sold at. This will help you get a fair understanding of what the seller might be expecting.
  • If the house you are buying is for investment, then also find out the rent the house would fetch. Check if the rent can pay off the EMI or you need to top up.
  • With this, also make sure you find out the maintenance fees and sinking fund if any.

 

Lastly, with all the above done, doing the paper work:

  • Token amount
  • Black/White part of the deal
  • Registration
  • Final settlement
  • Possession
This can be a little tricky as there is a lot of paperwork to do, lot of legal matters to take care of. It is advisable to get professional help if you are buying a property for the first time. Without prior knowledge of real estate, buyers get bogged down and don’t really know if they are doing the right thing. So to be stress free and to make sure that all the paper work is correct before moving into the new house, get yourself a property advisor who will not only help you find property, negotiate but also help with get the right paper work done for your dream house.

Depending on where and how you are buying, these points might defer. But the overall stages will remain the same in every buyer’s life.Hope this article help you make the right choices and happy shopping!


This is a blog post by Karishma Patel

53 comments:

  1. Nice informative blog over residential property in India wanted to book a flat in ulta luxurious cloud9 Upcoming Residential projects in vaishali Indirapuram by Rishabh Group at reasonable rate.

    ReplyDelete
  2. Thanks for sharing information about property . We are Delhi based provide DDA L Zone property at best price read more please visit http://kampdevelopers.com/

    ReplyDelete
  3. Thanks for sharing your master plan and very clear images, very informative text. Buy a residential flat with SG Estate at affordable rate in Ghaziabad.

    ReplyDelete
  4. Thanks for sharing the information. Buy a residential flats in Prestige Kew Gardens Bangalore with affordable prices.

    ReplyDelete
  5. This comment has been removed by the author.

    ReplyDelete
  6. Thanks for such a wonderful blog. I appreciate your efforts to write this. Keep Posting!! villas in sarjapur road|independent house for sale in bangalore east - Real Estate

    ReplyDelete
  7. Thank you I am glad about the encouragement! I love your site, you post outstanding.
    real estate investing

    ReplyDelete
  8. I conclude, have selected a smart and surprising website with fascinating material.
    About Perla Condos Mississauga

    ReplyDelete
  9. This comment has been removed by the author.

    ReplyDelete
  10. Thanks for the information... I really love your blog posts... Increase your Sales through Top seo companies in Chennai

    ReplyDelete
  11. Hi Karisma,

    Really nice information.

    Home buying is really a big stage in everyone's life. But, buying a property or home without preparations will cost you a lot in the future. The situation will be very horrible if a person going to buy a home for the first time. It's mandatory for all property buyers that they should conduct research before taking such important step. In general, people look only basic things like location, budget, design, connectivity to other areas, etc. But apart from these there are various other elements need to consider during such stages in India.

    I agree with your words highlighted in the post.

    Thank You,
    Pavan
    http://www.godrejnaturesplus.ind.in/

    ReplyDelete
  12. Yoursz, a real estate property platform for global Chinese buyers, is committed to functioning as a bridge to connect global Chinese investors with one another.
    Chinese Real Estate Investors

    ReplyDelete
  13. I really appreciate your work and very amazing and important information about the real estate which have share in this blog.
    real estate agent in florence oregon

    ReplyDelete
  14. Thanks for a nice share you have given to us with such an large collection of information. Great work you have done by sharing them to all. simply superb.
    2 bhk flats in Chennai


    ReplyDelete
  15. I got many new and latest information about the real estate and i just appreciate your all work keep more posting.
    Orlando Vacation Homes

    ReplyDelete
  16. Nice post to blog in information provides blog real estate. you Prestige Park Square Bannerghatta is a Pre launch Project of Prestige Group Located at Bannerghatta Road Bangalore.

    ReplyDelete
  17. I like your blog. Very good information. Thanks for sharing. Sai Associates offers 3 Bhk Apartments Jp Nagar 8th Phase

    ReplyDelete
  18. that's a good information
    If you looking to book 3 bhk flats in noida extension ? Then ACE Divno is one of the best choices. Call toll free: 1800119999

    ReplyDelete
  19. http://www.ahujahighlands.com/gallery.html

    Plz contact us at coimbatore at 7010180922

    ReplyDelete
  20. Thanks for the information...I really love your blog posts... specially those on 2BHK and 3BHK apartment Chennai

    ReplyDelete
  21. It's Great Article Cache Chief has recently collaborated with Shree Radha Aangan, a township project that spreads across 55 acres of land. Shree Radha Aangan is a residential project started with a vision of providing housing away from the hectic lifestyle

    ReplyDelete
  22. Searching for your Dream Home? Immerse yourself at
    Ongoing residential projects in Vijayawada
    Studded with Luxury amenities

    ReplyDelete
  23. Really nice blog for purchase the property. I like it.Northern Destiny

    ReplyDelete
  24. I came across through your blog. Thanks for sharing the nice information.
    Real Estate Developers in Chennai

    ReplyDelete
  25. Really interested information sharing about the things to consider while buying a property.
    Top Construction Companies in Chennai

    ReplyDelete
  26. That is very informative and helpful article. Thanks for sharing the great information about Things to consider while buying a Property. Lighthouse Realty Florida is an independent and leading Real Estate Agent in Jupiter fl offering Palm Beach Real Estate for Sale at affordable prices.

    ReplyDelete
  27. thanks for sharing property list! it is good news for property Buyer
    ambience creacions floor plan

    ReplyDelete
  28. Thanks for sharing these things about buying a Property. If you wish to invest in a place where you’ll get closer to nature, then Coimbatore is the best, and JRD Realtorss is a leading real estate developer of houses, villas and apartments in Kovaipudur, Coimbatore. Kovaipudur is known as 'Little Ooty' because of its chilly climate and tranquil environment.

    ReplyDelete
  29. Thanks for sharing...
    BramhaCorp Develop the best Projects in Kalyani Nagar, get your Best 2 BHK &3 bhk apartments in kalyaninagar Pune within your budget with best Amenities.

    ReplyDelete
  30. Thanks for sharing great information about the property. Here are given below some residential projects.
    2 BHK flats in Sopan Baug
    3 BHK flats in Sopan Baug

    ReplyDelete
  31. Seethesh Beyond Technologies, [28.08.18 11:27]
    Shreyas Enterprises home loans in Vizag
    Shreyas Enterprises Vizag is engaged in offering Home Loans to the clients In Visakhapatnam. A crew of experienced personnels works with enthusiasm for rendering best services

    ReplyDelete
  32. Shreyas Enterprises home loans in Vizag

    Shreyas Enterprises Vizag is engaged in offering Home Loans to the clients In Visakhapatnam. A crew of experienced personnels
    works with enthusiasm for rendering best services

    ReplyDelete
  33. Nice Article! Keep Sharing This Kind of useful Information. Sastabroker.com is the free online Platform for anyone who wants to display their properties for sale or for rent basis. As an India’s leading online real estate portal we are pleased to offer you the free and paid online property registration services Contact us now! And register your property with ease.

    ReplyDelete
  34. Thanks For Sharing This Nice Information.
    Boulevard by Bramhacorp Builders provides the new commercial projects in pune with Premium office spaces now for sale!

    ReplyDelete
  35. Great blog,thanks for sharing such a Knowledgeable and informative post.KW Group provide the best upcoming commercial projects in Delhi/NCR.

    ReplyDelete
  36. Great article on real estate blogs, you have shared very useful information with us.

    Looking for Properties in Ahmedabad ? Know more about Ganesh Housing projects on the website.

    ReplyDelete
  37. Thank you for sharing all these things, these are very helpful when buying a property.
    property in ahmedabad
    Real estates in ahmedabad

    ReplyDelete