Read previous article in Home Buying Guide series: 8 ways to discover your dream property
For an under construction project as of 1 May ’17, it is compulsory to get a RERA registration number. Check if project is RERA registered or not. Shortlist any under-construction project only if it is RERA registered with all projects details appearing clearly on RERA website. This should be your first shortlisting criteria. For already completed and ready-to-move-in projects prior to May ’17 or resale purchases in old projects, RERA may not be required.
Pro-Tip: On a holistic basis, give a location score to every project to decide which projects are worth considering. Since workplace can change in future, give more weightage to distance from schools, hospitals and city centre.
Pro-Tip: Check appreciation trend for a period of 5 years for the area and of other projects in the same area to analyze if the project is a good fit for your appreciation expectation.
Pro-Tip: Since most builders have a lock-in of 3 years(for under construction projects) from the date of agreement, you will not be able to sell your unit in this period and will have to keep paying the EMIs to the bank. Weigh this factor in while shortlisting projects.
Pro-Tip: Try to find someone you know who has already invested in the project and is part of internal community groups to understand real problems faced by Buyers who have already invested in the project.
Pro-Tip: Avoid investing in a very small project(say 1 acre). Such projects will be cramped with constructions on all sides and will be noisy. Will also not have space for good set of even basic amenities.
Pro-Tip:1. Look for finer details in amenities info. Ex: An outdoor badminton court is useless as it can’t be used in all-weather conditions. Same with swimming pools. Many projects have temperature controlled indoor pools which are better than outdoor ones.2. Many builders do not deliver all promised set of amenities at the time of possession. Check compensation clauses(if any) in sale agreement. Housing society has to get some of the amenities developed later by pooling in money.
Pro-Tip: Carefully check subvention period listed in agreement with the Builder. Do not pay any amount until this is clarified. Factor in the amount you will end up paying as rent from the time when subvention period ends till the date of final possession. Do calculations assuming delay of at least 1 year.
Pro-Tip: Avoid investing in projects where Builder is hesitant in sharing legal documents or these documents are promised to be shared only after token amount is paid.
Pro-Tip: Verify if completion date in the agreement is same as the date registered with state RERA regulator. Do financial planning assuming delay of at least 1 year.
Pro-Tip: Ask the Builder for all the terms and conditions related to cancellation of a booking. Make sure you understand all the cancellation clauses listed in sale agreement.
Please share feedback about this post in comments below. Also please let us know if you think there are more critical parameters for shortlisting projects while property hunting.
Read next article in Home Buying Guide series: 6 steps to comparing real estate projects for buying
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