What to look for as an end-user?
Suppose You are purchasing a property for your personal use. You should be able to live in the house for at least five years. Property is not an easily liquid asset. Before you purchase, you should research the location, the profile of other buyers, the facilities and amenities in the area, and future infrastructure projects.
Consider the travel time considerations of each locality. You may find a property you like, but it might be too far from where you work or your family. This aids you to make an informed decision about affordability, property type and conveniences.
There are three options:
First-sale, second-sale, or just buying an older property.
First sale -There are some discounts available for property purchases made at launch by the developer. Brokers will pass some of their brokerages on to you through a credit note if you purchase a property at launch. This amount is paid to the broker when the developer pays his commission.
As the property reaches possession, its value increases. These factors impact the quality of your stay as well as the price you pay. You should be able to calculate the neighbourhood profile if you’re buying for future purposes.
Second sale– You are entering the secondary market by purchasing a newly built property before it is in possession. The previous buyer, who bought the property at a lower price and profits, usually sells it. There may be multiple sales during the entire lifecycle of an apartment’s construction if the market is strong and the property market is buoyant.
Resale of older properties -By entering the configuration required, you can search the value of your property on different websites. After viewing a variety of options, you can compare the prices, listings, and facilities. Individuals or agents post these listings. The seller pays the brokerage fee if the agent represents the seller.
It is a good idea to start with three categories
A buyer must ensure that the following are easily available and accessible before making a property purchase for personal use.
Transport infrastructure – expressways, flyovers public transport, metro, suburban rail links and distances from airport and railway station
Physical Infrastructure – water, power, sewerage and drainage.
Social infrastructure – schools, colleges, hospitals, retail facilities, entertainment options and sports facilities.
Should You Invest in Small Cities?
It would help if you did thorough market research when investing in smaller cities. The information available online, on magicbricks.com and 99acres.com and in local newspapers is a good place to start. You can use this information to understand the different types of property available and how they have changed over time. Online forums are a great way to meet other buyers and discuss the available projects.
Local property agents may be able to help you. Developers in small towns may be familiar with local builders. You should verify the background of the developer and speak with others who have purchased from the group. When you are looking to exit your investment, it is important to consider the builder’s reputation and the quality of the construction.
Should You Invest in the Periphery or Suburbs of Big Cities?
Benefits of investing in suburbs of big cities –
there are two types who prefer to live in the suburbs. Those who are looking for luxurious living spaces or those who are seeking affordable properties. Because suburbs are less expensive than the city, they can be both. The key factors for those who move to suburbs are spacious luxury and proximity to major cities, affordable property prices, high-quality Infrastructure, and the availability of well-managed residential areas.
Avoid Common Mistakes Before Buying a Property
1. Don’t buy into a township just because a friend or colleague did. As an end-user, you should know where you want to live. This could include the area near your family and friends, nearby places you frequent, or a place where you feel at home. You may not be able to live with your relatives or friends.
2. Don’t believe any developer or development company. You should inspect the development’s location and the sample flats. Avoid the development if there is seepage, poor maintenance, or parking problems.
3. Don’t assume that a property is right for you because it is within your budget. It is important to consider affordability, but creating a list of the features you value is equally important.
Neighbourhood analysis is a must
4. Don’t buy without knowing what type of people live there. You must live with your neighbour for a long period. Your neighbours are important to your comfort and well-being, even if you live close to family and friends.
5. If you’re an outdoor person, make sure to check the basic amenities, such as water, power, and backups. Check if there is a car parking facility for your vehicles. These can be a major problem if not seen.
6. Don’t buy into services you don’t use. These facilities may end up costing you more in the long term than they are worth. However, you might never use them. A membership to a club may not be worth it if you’re a riot scout. You don’t need a membership to a golf club if you own a property on the golf links. You will have to pay maintenance fees if you sign up for services you don’t use often. This will cause your living costs to go up.
7. Avoid buying a house near a school, hospital, or marriage garden. It can sometimes be a nuisance.
