9 things you should consider before buying a residential property

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Saving money for years to buy your dream house is a great experience. It is one of the most far-reaching financial investments in a person’s life. But, how is it possible to know a few crucial things before buying a property, so that you do not end up wasting your hard-earned money?

Also, buying a property can be a lot more stressful if you are a first-time buyer. If you are thinking of  buying a property and have no idea from where to start and what all is required, then you are at the right place.

Money9 gives you a checklist before buying a residential property

Be sure of your location

Before buying a property, know if it meets all your needs in terms of social and civic infrastructure. Check if there any infrastructure development is linked to the location that may or may not boost the price of your property in the upcoming years.

Connectivity

You must check if your property has good connectivity. Check if metro stations are located nearby your property. Your residential place shouldn’t be isolated.

Stick to reputed developers

It is very important to verify the builder, especially if you’re considering an under-construction property. The land can be under litigation and thus, it is imperative to verify the past and current projects of your builder.

Negotiate the price

Ask for the final cost of the property inclusive of all taxes and additional charges. Most developers are open to bargaining, so do not accept the price your builder quotes for the first time. Try to bring him down to your budget.

Ensure you understand all the government incentives

If you are a first-time buyer, learn all the government incentives related to buying properties. Make sure you do not ignore any government schemes and end up paying more than the stipulated price.

Study the area’s real estate pricing history over the last five years

Before putting your money, know if real estate prices of that location are increasing over time. Ideally, you should buy those properties whose value increase over time so that in the future, your investment has the capability to give you higher returns.

Size of the flats

In the WFH era, you may need a bigger place to accommodate a home office. Generally, builders mention super built-up area. The carpet area of your property could be less than what the builder has told you. Always go by the carpet area and not built-up area.

Don’t focus on the price

Focus on how well the final selection works for you, not only currently but in the future as well. Calculate the total cost and then review the payment options. Do not stick to one price. Think if just by increasing a few thousand, you can get a better deal or not.

Financing the property

Ensure you have managed to secure the most optimal home loan rate. Shop around different banks and don’t take the first offer that comes along. Go with the one offering you lowest interest rate.

(Inputs from Santhosh Kumar, Vice Chairman, Anarock Property Consultants)