There is no shortcut to earning a profit from the real estate in India. The transactions in relation to properties are time-consuming and if one equates the real estate with the stock market, it would be the biggest mistake. Hence, it is important to learn before you invest. There have been cases where people have invested in the real estate in the hope of earning a quick profit. But as we have already mentioned, you need patience while transacting in properties especially if it is an apartment or a flat. You must be assured of your requirements.
Here are the 7 important things that the Indian real estate industry teaches us.
1. Verify the approvals and licenses: There are 3 important documents one should check while buying a firsthand property. First, the Title Deed; second, the verification of the land use and the third, the Approval Certificate issued by the local civic bodies. Generally, the metro cities based companies who have earned a good name as real estate developers in Noida, New Delhi, Mumbai or Bengaluru own commencement certificates for the projects, approved building plans and environmental clearance certificates. You may request them to show you the certificates.
2. The list of the financial institutions: The next step is to verify the list of banking institutions which are financing the housing projects being built by your builder. Then, you may select a financial institution, which offers you the lowest home loan interest.
3. The total cost calculation: Know the exact property valuation. Please remember that apart from the base price, there are several other charges like the fees for internal/external construction; costs for preferential locations; costs to be paid for parking/ gym/swimming pool and of course, the service charge.
4. Verify your financial capability: Suppose you are living in a flat and paying an EMI for it. So, are you financially capable of purchasing another apartment in a metro city and pay for its home loan instalments as well? This is a very crucial subject and needs to be ascertained, without any scope for doubts.
5. Buy versus rent: Now this is another topic that very often arouses confusion in the buyers’ minds. There are some buyers who sign the purchase deal based on the hope that they would pay the monthly EMIs with the help of the rent earned out of the newly bought property. However, the real estate experts opine that this is a wrong approach. Generally, the rental income earned is only 2 to 3 percent. In addition, there is no guarantee that one would find a suitable tenant at the earliest.
6. Select the right plan: The experts suggest that one should choose the perfect plan meeting all the requirements. The top options include down-payment plan, construction-linked plan, flexi-payment plan and the possession-linked plan.
7. The size matters: The builders of the housing projects in Delhi & NCR and other metro cities mostly mention the super built-up area. This area also includes the lobby, staircase etc. Thus, you should know the carpet area while you select the size of your apartment.
A little awareness could save you from numerous troubles. Earning a profit out of the real estate investments is not something unattainable. You just need to do your homework properly. Only this is the key to success.