It is no secret that real estate can prove to be a tricky trade pertaining to the large number of risks involved. However, it just takes a little planning and some caution and you can well be the master of this game! So, if you’ve been looking forward to investing in a property, here are some factors that will have a direct impact on your purchase:
Your budget is the first factor that you must consider before looking out for a property. Needless to say, it must be in line with your finances. In order to ensure this, you must always keep your EMIs lower than 40% of your monthly income.
Your property investment will have a major impact on your finances in the present as well as in the foreseeable future. Hence it is rather imperative that you do an extensive research on the project you wish to invest in. If you wish to rent out your property or may be sell it after a few years as per your exit strategy, you must ensure that the property is in an area which is promising, is easily accessible, has the basic infrastructure required by the prospective tenant or buyer and is comfortably secure. More often than not, investing in a poorly facilitated surrounding might backfire due to the lack of tenants and/or buyers thus giving a blow to your investment plans.
Whether you plan to buy the property from standalone sellers or builders, it is extremely important to run a background check in order to ensure that they are no fraudulent. You may do so by checking some of their past dealings. In case something seems dubious, you can also get in touch with a couple of their previous buyers.
It is highly advisable that you close a deal with a seller only if he’s willing to offer a legit deed, so that you do not face any legal issues at a later point in time. You can ensure this by hiring the services of an attorney who can cross check the deed. Another area of consideration is to verify that all the requisite clearances with respect to the property are in place.
Before buying a property which is under construction, you must ask the builder for the allotment letter as well as the development agreement. In addition, doubly check the tax implications for the property in question so that there are no unhappy surprises in the future. As far as possible, completely avoid investing in a property which is disputed for any reason, whatsoever.