The Real estate market has been volatile in recent years. Criteria to consider before buying a home depends on the purpose: living or investment. Here, we will look at some of the lesser-known criteria that one should evaluate before buying a home to live in.
Pedigree of the Developer
With so many Developers being unable to complete projects, going into debt, or going bankrupt, it’s more important than ever before to understand the pace of completion of previous projects, the financial status of the developer, and even the banks that are lending to them . This sort of due diligence will save you a lot of pain in the future.
Go for renowned developers with a proven track record. A reputed developer will be a member of industry associations like Confederation of Real Estate Developers Association of India (CREDAI) or the Builder’s Association of India (BAI). These bodies have strict norms for builders and deviating from them can lead to the company being blacklisted by the associations.
Check to see if the property has been authorized by the local government and has received all NOCs such as the IOD and the CC from the local authorities. Check the land rights and records as well, to make sure everything is above-board. You can hire a lawyer to conduct the due diligence.
Understand all the documents in detail and raise any questions or doubts you may have. Keep in mind other charges such as GST, registration charges, etc. Check with an accountant if all the documents are in order, and what other charges you can expect to pay.
This isn’t a lesser-known fact, but it deserves mention because of its importance. One thing you can do is visit the site, and explore the vicinity. You can also time yourself to the main points of travel that you will be using regularly, like a metro or train line. Additionally, check the location out at different times of the day as well, since traffic at night will differ from that during the day. Ideally, understand the traffic flow around the times you usually would leave to and get back from office.
These are a few of the several basic due-diligence tasks that must be done before signing on the dotted line, as they will materially affect your peace of mind, and will have you financial issues in the long run.