What are the things one needs to look if one decides to buy a house in 2010?
At Makaan.com we are recommending 5 golden rules of house hunting in 2010:
1. Go thru a housing finance company – with many developers struggling to raise capital for their projects it is advisable to route your purchase thru the broking arm of an established housing finance company. These companies will be able to verify land holding, environmental clearance, financial strength of the developer. These are critical verification points but are out of the reach of a common home buyer.
2. Prefer listed developer – If you have short listed 2-3 houses and are wondering which one to go for, prefer the one that comes from a developer listed on the stock exchange. These developers are more accountable and transparent due to disclosure norms mandated by SEBI.
3. Do a Google search – This is very simple and should be done by all home buyers. Just do a Google search to verify the credentials of the developers. You will get feedback (both positive & negative) from people who have dealt with that developer in the past. This is valuable information and should form part of your decision criteria.
4. Go for construction linked payment plan – Time based payment plans i.e., that forces home buyers to pay a fixed amount after certain interval should be absolutely avoided. In the past developers have collected upto 60% of the cost without undertaking any development activity. Home buyers are advised to deal with developers that offer construction linked payment plans.
5. Do not fall for freebee – Property purchase is the most important purchase of ones life. This should be done purely on the basis of merit and detailed analysis and not because someone is promising some short-term freebees. Home buyers should display higher maturity and evaluate offers on their long term relevance.