Every product has a buyer; that’s not true with every real estate project. All projects are not created equal. Below is a list of red-flags that we should be mindful about, these may stop some from investing, others may use these to dig deeper.
These real estate projects you should not consider or should keep in mind important points listed below while selecting a project.
- Project with a problematic approaching road, either construction or locality it passes through.
- Project built in a very small area(ex: less than 1.5 acres) with large open areas around. This could mean that others are either not interested in building anything there or there could be future access issues.
- Project that appears to be on a lake-bed or a green-zone, or the title for land is clear. A lot of people use the SBI Loan technique, hoping that SBI has done all the checks. Don’t go by this alone, do your own checks. Ask the builder to share copy of documentation, including clearances, title, etc.
- Projects near railway tracks, airport or other concentrations of loud noise.
- Project where carpet to super built up area (also called efficiency) is less then 65 percent. Lower the efficiency, more expensive the project.
- Project by a novice builder who can’t answer basic questions on construction or is vague about construction/completion schedule.
- Project where basic amenities like 100% power back up, sewage treatment plant, water supply, etc. are NEWS or something no one asks for.
- Projects using manual or obsolete methods of construction.
- Projects where total cost is not clear for example GST, charges for amenities, common facility, electricity supply, water supply, etc. Make sure you know the total amount you will have to pay before committing.
- Project where there is NO Model House or Display Apartment.
- Project where brochures, masterplan, floor plan etc. look confusing or are not disclosed upfront.
- Projects where payment terms are not linked to construction. This way the builder can start work, but stop mid way whereas the buyer is stuck. RERA addresses this.
- Project where builder is not RERA compliant. Check RERA compliant projects in Bangalore on RERA Karnataka website.
These are some of the points you should keep in mind among other things. You may have other requirements also. Always check these points while comparing real estate projects.
If you are not convinced or have more questions about a project, feel free to speak with a few real estate agents and even lawyers. A small fee early on can save you major pitfalls. To get more insights on how to buy a perfect home, read our Home Buying Guide.
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