Know these things before buying plot or house

Lakhs of rupees have to be shelled down, to buy a house or a plot. Even in remote areas, buying of property involves heavy expenditure. Hence, it is always essential to think twice before buying a piece of property. Reviewing many related aspects and taking expert advice are a must.

Normally people approach a real estate agent or company, before buying a plot or house. Agents, builders and reality developers are masters in attracting customers. They have a way with words and manage to lure customers by showing them ordinary property and describe it as heaven on earth. Question the agents and learn the truths before deciding to buy any property.

representative imageWill the rates not decline?
Agents will try to push of any property saying that the rates will never come down and you can buy it blindly. Some friends keep making such suggestions due to their own experience in buying a plot or house. It may have been true in their case. How can you say that it will be true in your case as well? Real Estate too is like any other investment. There will be ups and downs. However, real estate prices are not subject to inflation rates like stock market or bullion market. Reality prices come down in some areas. In others, they remain the same for years together. In some areas they rise very quickly. So it not exactly true that the prices of real estate will never come down.

Don't choose a far off place
Do not go in for property in remote areas, away from townships, just because the prices are low. Take care to see that the property you are buying is close to your place of work. Otherwise, you will have to travel long distances to work, which is waste of expenditure on fuel as well as time consuming. Also, if you have to go shopping or to a theater, you will need to travel to the town or city.

Decrease in rates
In some areas the price of property comes down. So before buying, know about the prices in the area. The agents or companies might evade by saying that the prices have not come down. They will try to lure you by stating that the house might fetch you good rent. Only those who want to earn rents on property can examine these facts. Do not believe the builder blindly. Find out about the rental value of the place before deciding.

representative imageHow factual are newspaper ads?
You might have come across newspaper ads which quote the price per sq.ft. Let us say a double bedroom house costs Rs. 42 lakh in a particular area, in an ad. When inspected, the actual price might work out to be Rs. 50 lakh. There will be additional costs. These might include, parking, club membership, fee for choosing a particular location etc. When questioned about the price, the agent might show you the corner plot in the venture. The brochures mention something called 'Super built-up area.' Steps and common area in front of the house are included in this. Super built-up area is 30 per cent of carpet area. For example, if the total area of a 2-bedroom flat is quoted as 1,000 sq.ft., living area is just 700-750 sq.ft. The upcoming projects in the area have to be estimated.

Blind purchase will create problems
If you are coming back because you did not like any of the deals, the builder might still try his luck, saying that almost all plots are sold, and very few are left. However, do not fall for these words.

representative imageModel house is different from real
The sample plot or model house that is shown by the company might not be the same. The model is built very carefully by the builder, employing expert, skilled workers, arranging everything in the right place. This is very attractive to look at. It is well furnished, with shining tiles, cupboards and expensive pump sets. This is only to attract buyers. After booking, when the flat is handed over, it is minus all the interiors. The document that the builder gives, will have details of the architectural drawings, carpet area etc.

 Make sure beforehand if the builder is compensating in case construction is delayed. They might include some conditions like they are not responsible if the delay is caused due to reasons not under their control. Do not trust the builder's words that you may cancel the booking anytime and take back your deposit. Because all builders and companies are not economically stable. Once you make the down payment, you are totally at the mercy of the builder. There is no rule that once the booking is cancelled, you must get back your amount. Some take a cut of 10 to 20 per cent from the deposit and repay the remaining. If it is a small time builder, you will have to forget about your deposit.

The builders also blackmail the customers in to booking the plot, stating that registration fee will be waived, exclusive modular kitchen will be built or car will be gifted. Actually, the cost of these free offers are included in the selling price. Some builders tie-up with certain banks, for easy loan facility. Do not go by the bank or the rate of interest. First-time buyers are not aware of many such things. So they should learn about all these things, before buying.
representative imageCommercial Property
Mon, Jul 24, 2017, 07:05 AM
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