My First blog.... Appreciate your feedback and inputs ..... completed this in less than 10 mins ... may have missed something valuable .... Thanks in Adv... :)
Posted it at below site but I was banned... :)
Below are my 2 cents from my exp
1) Do not go with Launch offers - I had booked with 2 very reputed builders whose entire scheme was sold off during launch and I thought property prices will rise but now today the prices are still same / lower ...as 2 yrs back and yet to get possession... ppl who didn’t book were wise as they are sitting on cash, earned interest or didn’t pay interest for part disbursement.
1) Do not go with Launch offers - I had booked with 2 very reputed builders whose entire scheme was sold off during launch and I thought property prices will rise but now today the prices are still same / lower ...as 2 yrs back and yet to get possession... ppl who didn’t book were wise as they are sitting on cash, earned interest or didn’t pay interest for part disbursement.
2) Only buy ready possession houses - there is no point on loosing sleep over false builders commitments - ours is hard earned money and we should know how to use it wisely ... we only buy fresh vegetables don’t we ... or we pay to farmer in advance on his commitment of delivery of good n fresh vegetables - apply same rule and u will gain better - lets not be cattle and follow crowd - today lot of ready possession apartments are available - best is on net you know pros and cons of same ... Like we know for Fortleza - Kalyani nagar of Raviraj-kothari group. (Just google for this and see results you get)
3) Do not buy to rent it out - u get better returns else - even on FD's or PPF it is better with no flats less than 30Lac .... even if you have 30% available for down payment ... I will say put it in FD and get 8% as 1 BHK will not fetch u 24K as rent .... Cash in hand is best
4) IT benefit is not here to stay and it is only good for loan up to 15-20 lac .... beyond that what interest you pay and what u get as real value of apt after entire loan is repaid is totally different. More over no more IT benefit for house after 2011... that is just one year man .... even 8.5% fixed is too much ...
5) Property Appreciation is history - Today's reality is .....(Take home sal) -minus ( EMI[house+car] + monthly house exp + LIC/ULIP payment + kid education + once in while dinner + if possible vacation ) = outstanding balance on credit card ... no savings .... And yes... if you have assumed that you have very secure job with 20% raise every year
6) No I am not saying do not buy house and keep paying rent - I am saying do your through Homework .... dont let any one cheat you of your hard earned money and spend it very wisely - if you have spent 2-3 yrs in accumulating for your downpayment and will spend 5-7 yrs in paying off loan - why hurry to finalize something immediately - spend time in evaluating - write down your requirements on paper and dont get distracted by anything like free stampduty, reg, car-park etc
For eg: My Ideal checklist will be:
1) What is carpet area i will get to live in finally?
2) Divide carpet area into final price and arrive upon real price?
3) what us actual to charged cost of MSEB, Maintenance, Carpark? (Most this list is illegally charged)
4) Does it have corporation water - or every one is buying so will I? or it is available for 6 -2bhk flats but my building has 30 - 3bhk
5) Cost of staying there - We pay maintenance per month and then we again pay for water tanker, generator backup (diesel), club usage, I know a builder have given clubhouse and swimming pool to prof agency to run their club and society members are paying for using it ... remember you have to give it over and above your EMI paying for that apt...
6) Does this apt have proper connectivity, road ? - think of emergency to call ambulance or ppl to travel form Airport , railway stn.... if they arrive at odd hrs will anyone bring them to your apt.
7) Security - can I peacefully go on business trip leaving family back home
8) Can I afford to pay EMI in future as well - expenses keep going up and in case market goes down again, remember salary cuts, recession fears etc
9) What is cost of interiors - i.e. to get apt to make it livable - i have seen min Inr 100 - 500 per sqft spent on livable interiors i.e. INR 4-6 lac for 850 sqft carpet apt
10) Are basic needs like grocery / medicals /auto / maids / servants / take away available in that society easily?
Friends we all have full time job and cannot have bandwidth to fight with builder or do court case / police compliant against builder where as cheating has become full time activity of some builders so - pls. be very cautious .... think thrice before you make final decision .... as it is one way road ahead and u have to pay huge fine for U turn !!!
I would suggest to get a good Agent since he is in the market, let him do his job to source out properties for you as he is aware of reputed builders and the market scenario. I give below few tips to choose a Real Estate Agent, hope this is helpful..
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How to Choose an Estate Agent? It is hard to convince home buyers that they should put as much thought into choosing a real estate agent as choosing a home.
Getting the best real estate agent is generally easier when you know how to be a good buyer.
Here are some things you should keep in mind:
• Check his credentials. Get a reference if possible. Speak to a few of his past customers for references on his ability and reliability. It is always better to deal with a broker that some one you know has dealt with.
• Most agents specialize by area within a city. It helps to go to the most visible broker and one with a long track record (5-7 years). The property owners normally approach him due to his higher visibility and his longer presence in the area. This increase the chances of you are getting a good deal fast. More over his knowledge of the area will ensure that he can guide you through his knowledge of property history, the owner history, rates, problem properties etc.
• Avoid one-man outfits. These are of ten sub-agents. It is also better to deal through a broker who has direct access to the property owner. Choose an agent who is willing to invest time & money on your search including site visits, legal due diligence and perhaps advertising on your behalf. These services can time & money savers for you. Most importantly deal through a broker you are personally most comfortable with.
• Always clarify the level of brokerage that you are willing to pay before using his services. Normally brokers charge 2 percent of the transaction amount in a sale, and one months rent in a rental transaction. But these rates are flexible depending on the amount service fee involved. While it is always important to negotiate on these, it is also important to remember that there are no free lunches.
• It is also important to clearly communicate to broker what you want. Help him to locate the property you want. Moreover when in doubt ASK. For first time buyers it also helps to involve a friend who has recently bought or sold a property. During site visits, point out things which you like or don't like. If possible take notes. These will be very useful while making final decisions.
Hello Prashant! Congrats!! Looking forward to hear more from you!!
ReplyDeleteGood one Prashant. Keep it up.
ReplyDeletegood one. keep it up.
ReplyDeleteGood blog Prashant...!!!
ReplyDeleteKeep it up.
--mandar
Very good Blog Prashant...! MANOJ
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