5 checks before making the right property investment

Karun Vyas has recently zeroed down on a property. Before he registers this property in his name, he wants to know what the basic checks are that he should keep in mind. Here are some of them-

Invest as per your budget: It is advisable that your EMI shouldn’t exceed 30 per cent of your income. While investing, keep in mind the growth potential of the area. If you are an investor, you would be able to bank on rental yields only if there are development prospects - job market or social and physical infrastructure. Future end users are current investors. They should ideally use formal indices such as PropIndex to track the growth of an area.

Let Magicbricks help you arrive at the right property! Click for options!

Careful research and documentation: This is a must. If you feel you are not an expert, engage one. Most property related disputes happen when there is lack of clarity. Either the buyer would have blindly trusted the developer/seller or missed checking the Occupancy Certificate, Completion Certificate, legality of construction and so on. An expert can guide you on such matters.

Check the policies: Know that all property decisions should revolve around the implications of policies outlined by the government. If a policy change can affect an investment, you should be able to calculate the intensity. For example, take the case of circle rates. “In many cases actual property transactions take place at a higher price than what the government prescribes as circle rates. Buyers have to register property at circle rates and yet arrange for additional cash for the overall transaction. Property prices thus keep going up,” says Bhagat Pratap of Hari Om Realty Services. Other factors that can affect sale, purchase, demand and supply of a property could be home loan rates, economic growth and orders from specialised bodies such as the National Green Tribunal etc.

Opting for a resale property? Asha Nayar Basu, Senior Partner, S Jalan & Company, Solicitors and Advocates advices, “A property can be inherited in a number of ways on the death of a title holder. If there is a will then it should be registered with the authorities and only then do beneficiaries get a right to transfer their respective shares. There have been times when a seller does not have the tax receipts. In such cases one can contact the concerned office with the survey number of land and confirm the original owner of the land. In some cases, people take loan from banks by pledging the property. You should ensure that the owner has paid back the entire amount and has no dues. It is important the owner has a release issued from the bank. Refrain from investing in a property stuck in legal issues.

Check genuinity of schemes: The property market is flooded with schemes that attract buyers - subvention schemes, assured buy-back guarantee or buy one get one free. Experts on GuruTalk say, “You must check the ability of a developer before going in for a subvention scheme. He might be paying interest till the time he delays or is unable to deliver. But ultimately, the loan will be on your name and your loan limits will be exhausted without even getting the home. Go only for credible developers and get all terms and conditions clear on paper.”

Magicbricks has always encouraged queries on Magicbricks Forum. For expert advice, get back to us on these platforms or write in at editor@magicbricks.com

Magicbricks Bureau