Since there are multiple check-lists floating around on the internet on buying an apartment in Mumbai, this article will cover some of the essential points, and dwell on the more practicable and real ones.
1. Legality: It's the most important thing to check before buying a flat. In every city there are local government bodies authorized to approve maps of any building. Buyer must check the approvals before entering into agreement or contract.
2. Builder Reputation: As a buyer/investor it's your responsibility to check the history of Builder or Developer. By visiting old buildings constructed by the same builder, you will be in a position to decide upon the quality standards followed by the Builder. Generally, all good Developer companies maintain their complete profile in CD's. Just ask for it before buying the flat. Also, by checking the past history you can make a prediction that whether builder will provide the flat on promised possession date or not.
The piece of land in question may be under litigation. Hence, it is recommended that you do an extensive verification of the builder. You could verify its past or current projects or even post queries on the various online real estate forums.
If you are buying an under-construction apartment, then visit buildings delivered already by the same builder to check out on quality of his construction, assuming that it would be the minimum quality he would deliver here. You can ask occupants of the older building on whether the building was developed on time, or the developers handed over the building to the society amiably, etc.
3. Estimate the total cost of ownership, including parking charges, stamp duty, registration charges, new furniture / furnishings that a customer may have to purchase. All this could contribute to almost 5-20 percent of the bare cost of the apartment.
4. Features & Specifications: It is not obligatory always that projects on main roads have a location advantage compared to the ones located on inside roads. Down the line, after some years you might realize that you have done the mistake by culling Residential Project located on the main road because of incremented traffic sound and commercial activities. Recollect we are buying a domicile not an office. While culling any location you should check for rudimentary facilities like the grocery stores, schools, hospitals, public convey, etc. Check for congruous ventilation. When I told this to my friend who was buying a flat, he laughed at me. During summer there were rigorous power cuts and her family used to cook victuals in the dark during the early hours of the day. Of course, these days we have power back-up and inverters. However, having opportune ventilation is always good for health.
5.Upcomming Infra changes: Verbalize with the building watchman or the watchman of the neighboring building in case the building you would buy the flat in, is under construction to ascertain the situation of dihydrogen monoxide supply, electricity supply, availability of domestic avail, level of security and safety, neighborhood grocery stores, distributions from restaurants, gyms, daycare centers, hospitals, and schools, depending on your life situation, and your desideratum.
6.Future Value: If you are buying the property as an investment, please ascertain that it fits into your overall asset allocation and that you have a balanced mix between equities, debt instruments, and authentic estate. It is recommended a 40:20:40 mix between the three for investors below 50 years of age. Additionally, calculate your annual returns from the genuine estate as an amalgamation of 2-3 percent rental income plus expected capital appreciation fewer maintenance charges.
7. Competitor Work: Afore signing on dotted lines, it is very consequential that the buyer makes exhaustive research on the work done by different builders in the same location. By visually perceiving different projects, you will be in a better position to make judgments about Quality, Facilities, and Price.
8. Price: Well, in the cessation, it all comes down to Price. A buyer must do a consummate survey about the prices in the location/area in which he is orchestrating to buy the flat/dormitory. But there are certain variables which must be kept in mind afore you make a decision on the substructure of price. These are facilities in the building, designations of the flat, location, possession date, quality of construction, etc. You must understand that the most economical to buy may not be compulsorily the best. The comparison should always be done between equals. Additionally, if you like any property and you are not getting it in your budget, don't just walk off but endeavor to negotiate with the builder/developer as I believe that you should not relinquish your dream home for a 5-10% distinction between budget and authentic cost. You never ken, negotiations might pay off. "
9. Available Loans: Your credit score determines your interest rate on a Home loan. If you have a lamentable credit score, then there are higher chances of your domicile loan application getting repudiated and banks can charge the highest interest rates above 12% interest rates. Ascertain whether the habitation loan you are contemplating is the most frugal loan? Explore rates for woman co-ownership or senior denizen, if applicable. Customer accommodation in private sector banks and public sector banks is not too different from in-home loans since our interaction is minimal on a perpetual substructure. Hence, fish for the best rate.
Banks would tempt you and offer home loans saying more frugal interest rates. Generally, they offer more frugal home loan rates only for initial years. E.g. there was a comment from a reader saying he took a LIC HFL home loan which was fine-tuned for 2 years for 10.25% and later they incremented to floating rate which is above 11%. Denotes your monthly EMI would jump just like that. What I would feel is you should provision such things in your monthly outgoing EMI’s and optate the best home loan rates in India.
LIST OF BANKS FINANCING THE PROJECT. With real estate companies sitting on unsold inventory and not having enough cash to complete their projects, banks have become vary of financing them. There are many builders which do not get bank loans at all. So, once you finalize the property and confirm that all approvals are in place, find out banks which are ready to fund the project and go with the one offering you loan at the lowest rate.
10. If you are buying an under-construction apartment, then visit buildings distributed already by the same builder to check out the quality of his construction, postulating that it would be the minimum quality he would distribute here. You can ask occupants of the older building whether the building was developed on time, or the developers handed over the building to the society amiably, etc.
11. Area calculations: There are 3 terms which you will come across while buying any residential flat/apartment. These are Carpet area (The area within four walls of the flat), Built up area (The area including carpet area and area occupied by walls of flat) and Super built up area (The area including carpet area, built up area and proportionate of common areas). Generally, builder charges on the basis of super built up area and consumer must understand the calculation before entering into the agreement or contract.
There are 3 terms that you will come across while buying any residential flat/dormitory. These are the Carpet area (The area within four walls of the flat), Built-up area (The area including carpet area and area occupied by walls of flat), and Super built-up area (The area including carpet area, built-up area and proportionate of mundane areas). Generally, builder charges on the substratum of the super built-up area, and consumers must understand the calculation afore entering into the accedence or contract.
12. Ask for legal documentation: Of course, this is a general practice that we would check for licit documents from the owner of the property. Generally, this should be verified with a registered office by taking an Encumbrance Certificate (EC). This EC would be taken for 20-25 years and optically discern that the EC and licit documents would match.
Are you planning to buy a ready-to-move apartment?
With the implementation of the Real Estate (Regulation and Development) Act (RERA), customers are skeptical approximately making an investment their hard-earned cash in under-engendering projects. Given that incessant challenge delays have marred the popularity of under-engendering projects, calls for ready-to-flow dormitories have expanded manifold.
Another benefit of buying a possession-ready property is that you can choose to move in any time you want or let out the property for rental income. Unlike an under-construction property, a ready-to-move unit will allow you to save your expenses on current accommodation, which can be used to pay installments for the home loan.
Experts suggest that people searching for products/services have to be aware about positive methods and norms at the same time as finalizing their buy decisions. Kartik Gautam, a Delhi-primarily based totally assets dealer, states that shoppers have to be properly familiar with the office work concerned withinside the domestic shopping for process. Not handiest will shoppers ought to grant info and files to government and the bank, if they're availing of a domestic loan, they have to additionally take a look at positive files to make sure the clean identify of possession and authorities’ approvals.
What are the documents to be checked before buying a ready flat?
Here is a listing of important documents that ought to be confirmed even as buying a ready-to-move property:
Completion/Occupancy Certificate:
A Completion Certificate (CC) is issued by the municipal authorities on the completion of the project. Meanwhile, an Occupancy Certificate (OC) is issued by a local government agency once a project is completed and deemed fit for habitation. This certificate reads that the property has been built in accordance with the approved codes and other laws making it suitable for occupancy. Both these documents are mandatory while seeking loans from banks and financial institutions or while applying for water, sanitation, and electricity connection.
Sale deed
A sale deed tops the tick list at the same time as verifying files on your new home. It is the center prison registered document, which acts as evidence of sale and switch of the property. It is really helpful to examine the great print and take a look at all phrases and situations earlier than signing the deed.
Building plan
The constructing plan is every other report that wishes to be cross-checked earlier than finalizing a assets purchase. Usually, a constructing plan is authorized through the nearby municipal authority. Also referred to as a website plan, this report will include a blueprint of the task, device format, and utilities. Buyers ought to make sure that the format of the constructing or task has been duly authorized through the nearby authorities. Any unauthorized or extra creation runs the hazard of being demolished or denied occupancy later on.
Encumbrance certificate
It is likewise critical to affirm that the belongings do now no longer have any dues for which a consumer ought to take a look at the encumbrance certificates. An encumbrance certificates affords proof that your private home has no economic and prison liabilities. The certificates may be acquired from the sub-registrar’s workplace wherein the belongings have been registered.
