How To Select Property?tips on how to choose property to invest
Apnaloan.com Research Bureau
10 Aug 2007
The first step towards buying a property starts from being able to identify the one that suits your needs.
With a large number of builders competing with each other to get your attention (and you money, too), there is a wide range of choice available. However, it is important to select the property depending on:
Location Of Site - While choosing the location, you need to keep the following parameters in mind (Fill the table below and assign 1-5 values to the parameters for each flat you see in an area. A comparative table like this will help you to short list the flat).
Affordability - Does the location fit your budget?
Place of work - How far is the office from the desired location?
Market place - Where is the nearest market?
School - Where is the nearest school?
Public transport - Are buses/trains easily available from the location?
Builder - Does the builder have a good reputation in the market?
Availability of water and electricity - Is there a steady supply of both?
Residential/ commercial - Commercial areas face traffic jams during working hours and level of noise is rather high
Hospital/ Medical services - Are they available easily?
Society expenses - Is the monthly outgo on the society and maintenance a strain on your budget?
Security - Are the security systems in place, like a professional guard or electronic systems?
Parking - If you own a vehicle, you will need space to park it.
Type of ownership - In some areas, property is available only on a power of attorney or "pugree" basis. Getting funding for such properties is a problem.
|Parameters||Flat 1||Flat 2||Flat 3||Flat 4||Flat 5|
|Place of Work|
|Availability of water and electricity|
Self constructed property (SCP) - SCP is a situation where you buy a plot of land and construct a house there. All banks may not fund such projects.
Under construction property at an early stage - Many banks may not prefer to fund such projects. But if the builder is well reputed then it should not be a problem.
In case of a ready / resale property, you need to bear the following additional points in mind while selecting a property
Chain of title - It is important to have all the proper registered documents from the proposed seller that declares his ownership. These documents are important for you to garner a loan from the bank.
Maintenance - Check the internal as well as the external condition of the building.
Water leakages - A flat with water leakages should be strict no no as it adversely impacts the overall condition of the building.
Condition of the flat - Is the paint peeling off or concrete crumbling?
Neighbours - Grumpy neighbours can make life very unpleasant.
Society transfer charges - If they are too high then you need to factor that in your budget.
It is virtually impossible to select a property that meets all of the above-mentioned parameters completely to your satisfaction. It is, therefore, necessary to prioritise the above parameters and select a property on a trade - off that is acceptable to you.
Stage of construction - To decide on whether you need to go in for a property that is ready or under construction, you will need to keep the following factors in mind
Urgency - If you are staying in a rented property where the rentals are exorbitant and if you feel the need to shift immediately, you should opt for a ready property.
Discounts - If you are not in urgent need to buy a property, you could buy the property from a reputed builder on a cash down payment option and get a substantial discount on the cost of the flat.
Modifications - It is always easier to get a flat modified to suit your tastes/requirements at the time of construction than doing up a ready flat.