Precautions and safeguards before buying a Residential Apartment
Buying a property esp. your choicest residential apartment is not so easy.
However, by taking few precautions you can have a stress-free and joyful life at your apartment. It will also lead to good and long lasting tenant-landlord relations.
- Ensure that all property documents of the land and the property are properly checked by a legal expert. Some of the things to note are, title deed, land use, approvals from municipal corporation, occupational certificate, property tax paid, loan release document, bank loan commitment of the builder etc
- Take the estimate of total cost of ownership, including parking charges, stamp duty, registration charges, new furniture / furnishings
- Try to understand about the final usable area of the apartment, especially in case of apartments under construction (Super built-up area, common areas, etc)
- Make an estimate of the total cost of running your home / apartment viz. maintenance charges, property tax, increased commuting charges as compared to your present place
- Check whether most of the other occupants in the building are like-minded and in the similar age group, cultural and family interests of your neighbours etc.
- Ensure that parking allotted to each apartment owner is final and fixed, as conflit for parking space has been quite common
- Make some enquiries in the neighborhood of the situation of water supply, electricity supply, availability of domestic help, level of security and safety, neighborhood grocery stores, deliveries from restaurants, gyms, day care centers, hospitals and schools as all these are essentials for a happy and comfortable family life.
- Check with your bank about cheaper home loan as lower interest rates are allowed for women and senior citizens. Be clear with your developer/builder on the commercials viz. upfront cash component and later loan amount that can be arranged.
- Talk to your financial advisor on the component of investment in equity, debt and real estate. The ideal and suggested is 40:20:40. If you are buying property as part of your investment portfolio, calculate your annual returns and rental income, capital appreciation less maintenance charges.
- Enquire about the price range of apartments (sq ft) in the area you wish to purchase an apartment. Also, check the aesthetics, quality and materials used in the projects already completed by the builder. This gives you a fair idea of the final and finished construction project, where wish to buy an apartment.