Top buying tips for home buyers in 2014
Investing in a home in the Indian real estate industry is not a decision made in a spur of a moment. It takes a lot of time and market research and home buyers often get confused with the kind of property they want to buy? With this article, Makaan.com brings its readers and home buyers top six buying tips for 2014:
Choose ready to move in
One of the first and foremost suggestions to the home buyers in the New Year is to adopt a cautious approach by moving towards a 'ready to move in' option. It has been seen in the past that developers have not able to deliver projects within the stipulated time period and therefore, more and more seekers should veer towards a more cautious approach when it comes to making a property purchase. Under construction properties are tagged with heavy discounts and it might be hard for the home buyers to overlook such property options; however, we suggest that prefer a safer bet this year.
Ready to move-in flats are also ideal for home buyers who are making their first property investment. This will save them from spending on rentals. The risk factor involved in this category in terms of delays and hassles during construction is nullified as the home buyer is getting a ready accommodation.
Go for construction linked plan
During the purchase of a home, there are three main types of payment plans that are popular in India namely, Construction-Linked Plan (CLP), Time bound plan and Down payment plan. The preference of one plan over another depends upon an individual’s urgency to buy a home as well as the financial situation. However, this year we suggest you to opt only for construction linked plan. In construction linked plan, home buyer can pay the cost in pre-determined installments to the builder, at various stages of construction. CLP is more expensive compared to the other payment options as developer is taking a risk on his cash flow (if he is not able to fulfill his construction obligation).
A few of the advantages of construction linked plan for the home buyers are that it is easily financed by banks, its EMI rises gradually, it gives full tax benefit and is the best option if the construction is in initial stages.
Check record of the developers
Before making any kind of property investment, the buyers should check the past record of the developers. This is more important in the present scenario in which more and more projects are getting delayed. One can check the past record of the developers/builders/real estate companies by visiting their already completed projects and having a discussion with the residents/property owners about their experiences. In the New Year, buyers are also suggested to opt for real estate developers who have their projects approved by 2-3 housing finance companies. Buying a home from a developer who has a tie up with only one bank is a risky situation and the buyers should avoid such projects.
Avoid pre-launch stage properties
Pre-Launch is a phase in which a certain period of time is denoted at the beginning of a realty program to promote the new business opportunity or in the case of real estate, a new set of properties. The entire purpose of pre-launch is to attract potential investors, business partners and end users through different one-time-offers. In case of property, one has the excitement to acquire the ownership at quite low rates. However, we suggest that this year the buyers should avoid buying at pre-launch stage as there are many hidden conditions and the present year is not the time to take risks. Pre-launch projects essentially involve raising money from the investors and therefore, the projects are yet to have all the required approvals. Fundamentally, even the foundation stone of the projects haven’t been laid when the selling of the properties start under pre-launch stage. As this season, most of the properties will be bought for self occupation, a delayed project will leave a sour taste and pre-launch will not be a safe bet.
These are essentially the top tips for any person making an investment in the real estate sector in 2014. We hope you have a happy home buying experience. Keep watching this space for more of such insights.