Planning to Buy a House? Read This!

If you are currently thinking about buying a house, buy it only for your own use. This is not the right market for investment, as there is no prospect for property value appreciation in the next two years.

If you are planning to buy a house, now is the right time. Interest rates are very low, and many builders who have completed a large number of homes are ready to sell at discounted prices.

The Right Opportunity

Due to regulatory measures like the Real Estate Regulatory Authority (RERA), many builders are focusing on completing unfinished projects rather than starting new ones.

Golden Era

Thus, those looking to buy a house can look for projects that will be completed within the next three to six months. Therefore, this can be considered a golden era for homebuyers. Here is a checklist of what to consider before investing in a property:

RERA Website

Firstly, log in to the RERA website of the state where you want to invest. For a project that is about to be completed soon, check if the builder has registered the project with the state's regulatory authority. Then research the builder.

Verify RERA Stamp

Check if the RERA registration number is present. This indicates that the construction company has adhered to all legal regulations. Post-RERA, you can find building plans and information about units and towers planned to be constructed on the company's website. Also, gather details about the number of units, towers, and floors approved by the relevant authority.

Land Use and Ownership

Even under RERA’s protective umbrella, if you are unsure about land ownership and use, contact the relevant revenue and development authorities for assurance. Your concerns are valid, as in the past, some builders have sold homes on land they didn't own. Sometimes, they build residential properties on agricultural land without changing the land use.

Location

Ensure the house is in a suitable location. Check for proper road access, availability of essential shops nearby, proximity to schools and hospitals, and the distance from your workplace. Also, consider the availability of transportation facilities.

FAR and Purchaseable FAR

Sometimes, builders purchase additional FAR (Floor Area Ratio) to build beyond the initially approved area. They may make slight changes to the original layout to add more towers in green spaces.

Completion Certificate

If you plan to buy a ready-to-move-in house or one that will be handed over soon, ask for the completion certificate. This document assures that the builder has obtained all necessary approvals.

Is a Ready House Better Than an Under-Construction One?

Absolutely better, because you won’t have to pay both rent and EMI simultaneously, and you won't face the delay issues associated with under-construction homes. However, are they more expensive? Currently, many ready-to-move-in houses are available at reduced prices, as builders are willing to negotiate. With numerous homes completed and waiting for sale, prices have significantly dropped. RERA also provides security by imposing penalties on builders for not completing projects within the stipulated time set by regulatory authorities.

Comparison Between Resale and Direct Purchase

For resale homes, the choices are limited, but you can negotiate based on the seller’s situation. Ensure all legal documents are in order. Check with the bank, builder, or maintenance office if there are any pending EMIs or dues.

Capital Appreciation

Keep in mind that if you are thinking of buying now, buy only for your own use. The current construction industry is not conducive for investment, and there is no expectation of property value appreciation in the next two years.