8 Things to Keep in Mind before Buying a Residential PropertyJune 28, 2022 2022-06-28 14:33
8 Things to Keep in Mind before Buying a Residential Property
8 Things to Keep in Mind before Buying a Residential Property
Buying a residential property could be a hassle, especially if you are a first-timer. The various options available and factors like your budget, luring offers, and determining the suitability of a particular property, could all confuse you! Everyone claims to be the best and the most reliable.
But relax! Keep your calm, and don’t get carried away by everything and anything that comes your way. Remember, you will shell money from your pocket and buy the property. So, it is your choice that matters. Besides, buying a home or a residential property is probably the most significant of all investments you may ever make. So, consider these factors to make a prudent and trustworthy choice.
8 Factors to Consider Before Buying a Residential Property
Buying the right residential property involves evaluating the property across various parameters and factors. From your needs to the reliability of the developer and legal documentation, every aspect matters. Let’s look at eight factors that would matter while buying a home.
- Your Budget and Needs
First things first. Determine your budget and then your needs. The other way round may prove disappointing. Your needs could be sky-high, but your budget may not necessarily reach those heights. The market is full of options but what matters to you is one home that suits your budget and matches your needs.
So, set your budget right and then review your needs to narrow down your options. It will help you save time and streamline your house-hunting efforts. Besides, if you’ve hired a realtor, it will help them present more appropriate options closely aligned with your financial situation and requirements.
- Property’s Location
Now that you’ve set your budget and needs, the next significant thing to check is the property’s location. Good if your budget allows you to buy a home in a prominent area in the city. However, if it doesn’t, you must choose a location which, although it isn’t prime, is at least well-connected with the city’s other parts (especially your office and places you frequent).
Additionally, the location must have various transportation options available and should be proximal to quality schools, colleges, hospitals, restaurants, shopping malls, entertainment centers, parks, etc. It isn’t only the house but the location that also matters when it comes to lifestyle.
Another vital factor to check is the development happening around. The location must have a healthy appreciation rate so that you get a better resale value later.
- Construction Quality
When you streamline your options and shortlist a few developers, you must visit the site and see the home yourself. However, while doing it, you must also enquire about the developer’s construction quality. You may check it with the residents of the pre-existing sites and see some online reviews to get an idea.
Furthermore, meeting the developers and discussing the kind of material they use can also help. You need not necessarily delve into the technicalities of everything. Here, you need to evaluate the developer’s competence and whether they are using competent materials to build homes.
Connecting with a known construction professional or a realtor and knowing things before you ask them to develop can help in this regard.
- Basic and Advanced Amenities
Another significant factor in evaluating is the amenities the developer is offering. While some may advise you to buy homes in projects with basic amenities, some may suggest choosing projects with advanced ones to reap a higher RoI.
In the case of the former, you may save on maintenance costs. But in the latter, you would end up paying a substantial cost.
Nevertheless, you must think rationally. How many amenities would you use every day? Will you use the swimming pool, fitness center, or gazebos every day?
Fundamentally, a residential project must have elevators with backup, a clubhouse, ample covered and open parking space, security systems, and adequate water supply. Some advanced ones may include swimming pools, modern gymnasiums, jogging tracks, kids’ playing zone, senior citizen areas, etc.
Reason logically while considering your budget, the amenities you need, and the excess money you may have to spend on these amenities. The money you save on the maintenance may perhaps cover an element of your interiors, for instance, the wardrobe! Here, you must decide based on what suits you the best.
- Developer’s Reputation
Unfortunately, many developers fail to deliver their commitments. Of course, RERA has tightened rules and regulations, making it mandatory for developers to fulfill their obligations and ensure compliance.
However, it is always better to be cautious and be mindful of the developer’s market reputation, credibility, trustworthiness concerning the delivery of commitments, timely possession, etc. Again, as the investor, you must see how the developer fares in the market.
- Payment Terms
Developers usually adhere to a specific payment schedule. They expect buyers to release payments according to the schedule.
However, depending on your needs, you may check how accommodating the developer is concerning payment terms and if they can adjust a bit and allow you to buy some time to make arrangements.
Although this isn’t a stringent factor to evaluate, an accommodating developer could help you a bit on the financial front.
- Additional Costs
Additional costs could be unpleasant surprises when they surface. Some could be exorbitant and may hit your budget badly. Buying a home involves various additional costs like legal fees, registration fees, realtor fees, etc. You must know these costs beforehand and check if these costs are included in the total cost of the apartment or home. The realtor’s fee would remain separate, though.
- Legal Documentation
Legal documentation is complex and requires expert advice. Accordingly, while hiring a realtor, you must also have a lawyer by your side to check if the property papers are transparent. This holds true, especially while buying a residential piece of land. Many people have landed in trouble buying disputed or litigated land.
In the case of apartments, the bank would review the project’s documents when you apply for a loan. Nevertheless, keeping a realtor by your side to direct you to only developers with clear documentation and a positive reputation is better.
We hope this blog helps you make an informed and better suiting choice for your needs. Click here to connect with us if you are an aspiring real estate professional. IREF can help you become a real estate professional with a difference.