There was time when in India the Real estate was dull, but gladly now its slowly getting back into the form after the global economic crisis. And with another festive season slowly approaching, you can expect property transactions to be in full bloom soon.
But as the real estate engine slowly gathers steam, you should not rush into deals just because the worst of the recession is over. Buying Indian properties has always been tricky business, and you need to be more careful now, because builders will be looking to sell aggressively in the coming months to make up for lost time. Read on to find out what you should keep in mind before buying Indian properties.
The tips which follow will help you make transactions which are beneficial to you in every way possible.
Select a project after through considering the pros and cons. The reputation of the builder is the most important criteria in selecting a project post the global economic turmoil. This is because most builders are financially a lot weaker now and only the best can realistically hope to complete projects within deadlines.
At the same time, many unscrupulous builders have also entered the arena and may try to run off with your money, by luring you with attractive prices for property. Even if you have to pay a premium for doing a deal with a highly reputed builder, it is worth every rupee to do so.
Choose a payment plan which is linked to the completion of the property. This will help you make sure that the money is actually going into the construction work and not being used for any other purpose. As discussed earlier, there are many financially weak builders who will ask for lump sum payments at the start of the project. To avoid these type of businessmen go for builders who agree to sell you property for completion-based payment.
Know your allotment rights clearly. There is always a legal binding on the builder to be liable for failure to adhere to construction and handover deadlines. Be informed about the penalties for late completion in your chosen property deal. Make sure that there are clauses for refund of money in your contract, in case the project is shelved for good.
Before buying a property in India, give careful thought to the location and surroundings. Unless you are buying property in the metropolitan areas, resale value is always variable.
So, consider the various planned development programs for the area where your chosen property is located. Infrastructure, industry, commerce, retail, education, healthcare are some of the must haves in the vicinity of the property you intend to buy. Property which is quite far from any of these, is usually not worth buying. But having said this, future development potential of surrounding areas is also very important.
Ambience and facilities should be a critical consideration if you plan to live in the property of your choice indefinitely and are not even think about selling it in the near future.
Keep these points in mind in case you plan to buy property in India anytime soon.