Pitfalls and What You Should Look Out Before Investing in New Projects
The realty market of the country is witnessing a gradual revival this year. Even though the masses believe that the growth of the market has not been fast enough, experts believe differently. They believe that this is merely a course correction after which sustainable growth is expected to be acquired.
This is the reason why both institutional investors as well as individuals are keenly interested in the property markets even today. 2015 will usher more stability after the Real Estate Bill would have been passed during the winter session of the market. It will favour new or upcoming projects in Gurgaon and all the other major cities of the country. The demand for both residential and commercial properties is high in the National Capital Region, Pune, Hyderabad, Mumbai, Bangalore, Chennai etc. In this rush for acquiring prime accommodations, buyers invariably ignore some subtle signs and pre-checks that can help them make the right investments in new projects.
New Property Costs
The cost of properties especially in the case of new projects are advertised as the cost of the accommodation only. There are a number of other associated costs which are not borne by the builder and the buyers have to pay extra.
Chief among these are the registration costs, parking cost, borrowing costs and maintenance costs. Registration cost is a bulky liability that has to be paid by the buyer before taking possession of the accommodation. Parking cost is an additional amount to be paid to have a spot for parking the owners’ vehicle. This cost can easily be between two to five lakhs, depending on the property. The borrowing costs are the long term costs associated with home loans which add to the overall investment. It is a vital consideration when calculating the ROI. Maintenance costs are relatively meagre. However, they are a regular expense-to be shelled out monthly, quarterly or annually-and prevalent predominantly in the housing communities.
Validity of New Projects
Before opting for a pre launch project, a buyer must independently verify the validity of the project from the local municipal authorities. Once that verification is complete, he/she must go through the fine print of disclaimers.
It has been seen that in a lot of under construction properties in India, the property which a buyer takes the possession of is different from the one that was advertised. Complaints are not entertained citing the fine print clauses of the disclaimer which the buyer should have read in the first place. It is also imperative that all declarations by the builders should be captured as documentations to ensure that they cannot back out in future.
Consider Property Trends Locally
Buyers should always consider the demand-supply factor of the location where they intend to purchase properties. Analyzing property trends can help make corrections in the investment decision.
Plan Ahead for Interior Designing
Dream homes are sold, complete with furnishings and carpets. The home that one takes possession of is devoid of any. A lot of times buyers do not plan the furnishing. This automatically becomes an additional financial liability which can dissociate a person’s vision of a dream home.
In Conclusion
Vigilance and planning are the keys to a successful new property investment decision. A buyer must proactively seek peripheral information about the trends and the locality before making the final purchase.
