5 Points to consider before investing in Chennai apartments
Making the decision to buy a house is as crucial as choosing your life partner or perhaps your profession. Once you’ve made a good decision, you’ll rest in peace forever. If you’re thinking of purchasing your first home, refer to this as a not-to-be-missed checklist. In the event that you’re buying a second home or are looking at investing in real estate, use the points mentioned herein as a guide that will serve to check crucial things and mitigate possible risks.
1. Investigate the builder thoroughly
There are reputed builders and then there are the fly-by-night operators. It is your duty as a buyer to enquire and make a thorough check about the builder. Buyers should verify the builders repute and his history in delivery of previous projects. Do ensure you have a copy of the blueprint or the project drawings which have been duly attested by the municipal authorities. However, bear in mind that there may be some corrections in the original plan made by the developer.
2. Project Connectivity and neighbourhood conveniences
The location of the project is a very important factor while deciding on any project. The location can be a make or break deal for your property, whether you’re planning to sell or rent it out. Close proximity to hospitals, bus stops, schools, banks, parks and entertainment zones are ideal and will attract the best rentals and resale value.It is understandable that as a buyer there will be considerable importance to price and layout, but it is prudent that you must also consider the other factors mentioned above,additionally keep a steady tab on the rental and resale rates in the area you have zeroed on.
3. Don’t expect to get rich quick
There are many instances where developers advertise huge returns on investment in a few years and many unwitting customers fall prey to such tactics. Remember, there is no such thing; real estate is just like any other investment—it takes time to appreciate. Do consider that real estate prices have already been amplified to a high level in most cities, especially metros. Consider a realistic investment horizon of five – six years or more, and don’t expect to gain sky high profits whilst selling the property.The current market scenario suggests that there is a slow down in the real estate market as sales have lessened and there is a plethora of new projects being launched day by day; thereby creating a huge inventory with developers. Factor in all these points before expecting any huge windfall in real estate.
4. Resource planning
Individuals must exercise extreme discipline while planning their outgoings, more so when you decide to purchase a house. You will need to understand how much money you’ll have each month to manage borrowing costs along with other fixed expenses.Once you are certain about your resources and have determined the amount you can allocate towards the home loan, make a detailed study of the current interest rates offered by institutions besides keeping a constant eye on the projects that will fit your budget. It is your duty as a buyer to ensure that your home will suit your family’s needs and be within your budget.Conduct due diligence while enquiring about tax benefits on the home loan.Usually individuals/ married couples claim benefits on the principal and interest components of the loan.
5. Stamp Duty, Registration Fee and Additional Costs
Ensure you have the expense break-up of the house you wish to buy. Aside from the per square foot rates, the builder will give the rates of applicable taxes,maintenance charges and amenity costs. The taxes are important considerations that will be duly collected by the Government.Ideally one must research the stamp duty amount (levied as per the market value) aside from the city-wise rates and charges and then plan the budget accordingly. This ends up saving valuable time and effort. Don’t be hesitant in getting help from a team of professionals or legal consultants. Will there be power cuts during summer? Does the area get regular water supply? Are the sewage systems in place? What are the car parking charges?Who is responsible for managing the property after possession? Make sure you are absolutely certain about these things before you step into your new home.