Factors To Consider While Buying Property

Buying property can be very difficult if you don’t adequately research into the factors governing it. The prime factors to consider while buying property are the neighbourhood, type of property, cost of property and possibility of future appreciation. The location of the property plays a vital role in deciding whether to purchase a property or not.

Factors considered while buying a property:

1.)    Location or connectivity

2.)    Infrastructure

3.)    Face value

4.)    Reliability of the developer

5.)    Safety

With most cities expanding to the nearby suburbs, it is important that you assess the connectivity to different areas. Not only should a neighbourhood be connected to other residential areas, but also, to the business centre of the city. Most cities in India are seeing a growth in connectivity via the improved state of Metro connections.

For instance, the connectivity between Ghatkopar and Versova has been improved manifold with the inauguration of the Metro railway in Mumbai.

Areas which are connected to the central business district and commercial hubs of the city at minimum drive time should be preferred by home seekers.

To live a comfortable life, certain amenities need to be available at the disposal of the resident. Proper roads, street light, sewerage and drainage, garbage disposal and electricity are some of the civic infrastructures that have to be in place in a neighborhood for its property market to take off.

Social infrastructure is equally important to make a neighborhood habitable. Home seekers prefer to buy flats and houses in those areas which have good schools, banks, ATMs, hospitals, shopping centres and health care facilities within walking distance. Every city has these areas where people prefer living in because of the ease of life offered by them.

A lot of buyers simply prefer purchasing properties in certain areas because it is in vogue to own properties there. For example, Golf Course Road and Golf Course Extension Road have senior VPs of companies and entrepreneurs living in plush apartments because it is the current trend in NCR. A lot of old families living in Mumbai prefer staying in their 1BHK apartment in Prabhadevi or Worli, because of the brand value of the place. The status associated with living in a neighborhood ften attracts home seekers, albeit for the wrong reasons.

Most people invest in real estate because of the prospects for future growth. If you are looking to buy property for the purpose of investment, then choose an area which has rapidly grown infrastructure and commercial centres as it would lead to a faster appreciation of prices in the real estate market.

20 percent of all constructions to become Green Buildings by 2030

Green buildings are becoming one of the most sought after technologies in real estate of India. Green or eco-friendly technology is not only being adopted in commercial and office spaces but also residential ones. Top tier cities such as Bangalore, Delhi and Mumbai nowadays have green properties coming up in abundance. Despite the concept becoming so popular, few people know exactly what green buildings are.

Green buildings are those developed properties which use less water, conserve natural resources, optimize energy efficiency, generate lesser waste and provide healthier and life conducing spaces for their occupants compared to conventional buildings. Green buildings are assessed on their predicted performance over their complete life-cycle, from their inception through their operation. The stages of life-cycle that have been identified are:

Pre-construction

Inter and intra site issues such as closeness to public transport, soil type, land type, fauna and flora on the land site prior to the beginning of construction activity, location, features and natural landscape.

Construction and Planning: Conservation of resource issues and decline in resource demands, efficient utilization of resources and their reuse, provisions made for occupant well-being and healthiness. Primary resources that are considered include energy, water, land, green cover and air.

Maintenance and operation: Of processes and building systems, recording and monitoring consumption of energy, health and well-being of occupants and issues which affect local and global environment.

Green Rating of Properties

Leadership in Energy and Environmental Design or LEED India Green Building Rating System is internationally and nationally accepted as a benchmark for construction, operation and designing of higher performance green buildings.

The IGBC Green Homes was the first programme for rating green buildings developed for the residential sector exclusively. It is a part of the CII or Confederation of Indian Industries. The programme has been designed for rating newer residential buildings such as high-rise apartments, individual homes, residential gated communities and independent row houses along with existing residential towers.

For procuring the green rating, builders must register themselves once the process of construction has been completed. A project team shall evaluate then all the points plausible under this particular rating system by using a check-list.

GRIHA Rating

Another LEED India developed system for evaluating green buildings is the Green Rating for Integrated Habitat Assessment, abbreviated as GRIHA. The system was launched by the TERI or The Energy and Resources Institute and it is suited for all types of buildings located in numerous climatic zones in India property. There are roughly 300 different projects registered with GRIHA in India and roughly 14 of them are in Karnataka.

Key to Success: Self-Sufficiency

A building’s complete life-cycle is taken care of in sustainable buildings. The initial costs may be slightly higher although the upgrades, green designs along with operations make way for savings which almost always makes up for added costs and reduces the usage of other resources and improves productivity. 

Green buildings have gained momentum and may make up 20 percent of all property construction by the year 2030. They are better places to work and live in as they reduce water and energy use and lead to better profits.

An overview of the real estate market in india

Administrative uncertainties, liquidity issues and high rates of interest are expected to reinforce the real estate segment during the year. One of the much talked about topics in the current sphere is whether the market will thrive, be stagnant or the prices will go down further.

Besides, there are other challenges in this particular sector that the developers, buyers as well as other real estate enthusiasts are facing. Enlisting some of the issues as below:
1. Finding the correct face value of a property
2. Subdued sales
3. Unsold inventory
4. Adhering government regulations
5. Maintaining profits
Though, the industry is dynamic and do not follow a fixed pattern, still, to meet and resolve these challenges, the real estate entrepreneurs seek help from advisory firms in order to maintain a profitable stand in the market.

A property advisory firm explores the opportunities for both the buyers as well as the developers and then pick the best deal. These firms provide a provision of buying, selling, renting and loan processing in order to streamline the entire process of owning a property.

To buy India properties, one needs to take a look into the legal matters, cross check the face value of the property, location, nearby provisions, connectivity (highway metro, airport) and so on. It is very difficult to check all the details and manage the entire process single handedly. Thus, buyers as well as developers look for a service provider or an advisory firm so as to streamline the process and provide apt property service to people as per their preferences.

The real estate market is very dynamic by nature, thus, one needs to keep an account of the changing regulations and market fluctuations so as to acquire a process accordingly.

Property in India is in huge demand. In the forthcoming years, the commercial as well as the residential segment of the real estate industry is all set for a main growth, assisted by the government's initiatives and plans to enhance this sector.

Also, by streamlining tax rules the investors get to gearing up for building a trust in the nation with the local developers. The budget tenders offer a tax pass through REITs (Real Estate Investment Trust) and facilitate a provision to make India property tax efficient for the foreign investors.

This move allows big and small developers to tap new avenue of funds by trading completed commercial buildings to investors as well as by listing them as a trusted brand.

To get complete professional guidance on real estate, it is best to consult a property advisory firm. Not only, can they brief about the current scenario in the market, but, also can provide best properties, localities invest upon, which can maximise the profit margins.

Joieta Dutta is an author, real estate knowledge advisor, who has written various articles and blogs for Indiahomes.com. Having 5+ years of experience across verticals including Real Estate, Digital Media, Telecom and Internet Marketing services, she stands as a successful contributor, content planner, researcher and knowledge manager.

Hidden costs in real estate purchases and how to avoid them

The common trend in housing real estate is that of gated residential communities which come with swimming pools, kids’ play areas, community halls and landscaped gardens for recreation etc. However, did you know that none of these amenities are available for free? Developers often include these costs in the cost of an apartment before offering a quotation to a buyer. There are quite a few hidden costs associated with properties in India that buyers must be aware of before going house-hunting.

Parking Space

Most builders charged between Rs 2 lakhs and Rs 5 lakhs for parking space within a residential community. This was a huge cause of ire among buyers and led to a lot of disagreements between developers and buyers. However, the Supreme Court ruled in 2012 that builders of residential communities in cities cannot charge separately for providing parking space.

To avoid paying for parking, you should opt for residential gated community properties in India as many multiplex apartments still charge a hefty amount for parking spaces.

Interior Decoration

No matter what kind of an apartment you buy, some amount has to be spent in readying it for everyday living. This amount depends entirely on your taste and sensibility and could run up to a few lakhs.

You may avoid this expense by opting for a fully furnished flat in a residential community. At every stage of construction, visit the site and instruct the developer exactly what you want in the apartment.

Maintenance Cost

Needless to say, living in an apartment complex has a few expenses entailed for its maintenance such as electricity bills incurred for common lights, salaries of caretakers etc. A lot of builders charge flat owners this amount as a lumpsum right at the time of construction. Usually developers quote that they are taking the money for maintaining the building for the coming 10 years or so. Avoid such schemes of builders because legally builders are not allowed to do this.

Registration Cost, Stamp Duty and Fees for Legal Counsel

After a property has been handed over, it needs to be registered in the name of the owner. The registration fees is usually 1-2 percent while the stamp duty comes to 5-6 percent of the total property’s worth. Other fees include those of the legal counsel, notary etc.

The fees that is payable for registration and stamp duty cannot be avoided but you can save a bit on the amount payable to the notary and legal counsel. You should research adequately into the amount that is payable for various heads, so that you can negotiate correctly with your lawyer.

Costs due to delays

Whenever you buy property, you can always be sure of delay in delivery by 6 months to 1 year. This may not be the developers fault entirely as some clearances do take time to come through. In that case, if you have taken a home loan to buy the property, you would have to continue paying the EMI. Moreover, tax rebates on home loans would not be possible unless you have possessed the property. If you have been living on rent, then you have to factor in rental costs too.

For avoiding these costs, opt for a builder which is known for timely delivery of projects so that you do not get stuck with delivery issues of properties in India.