Essential Do’s and Don’ts of Buying Property in India

Putting your hard earned money into real estate can be tricky as well as extremely rewarding. However, it is often seen that people investing in property tend to not only put in all their savings but also choose to take loans for the purchase. Extreme caution when finalizing a property deal is thus highly recommended. 

·         Budgeting your Purchase 

Make sure that you have all your finances in order before you take the plunge. Even if you are dealing with one of the top real estate builders in India don’t get tempted to stray away from the budget you set for this endeavor. Make sure that the EMI you spend on the purchase doesn’t exceed 40% of your monthly income.

·         Conducting Research 

The next step is to do your homework. After understanding your requirements, work on properties that suit your needs. Take into account factors such as-

-         Locale

-         Accessibility and connectivity

-         Proposed and existing infrastructure development

-         Social infrastructure

-         Safety

It is ideal to avoid areas that are out of the way and lack basic infrastructure such as water supply, drainage systems and roads. Make sure you engage only with the top real estate builders in India and do not get swayed by promises made by developers that are in reality relying on your money. Since infrastructural projects can take eons to actually kick off, it is best not to pin your hopes on a possibility that is will never happen. 

·         Credentials of the Builder 

The Indian real estate market is littered with developers that are not necessarily reliable. If you come across an offer that is too good to be true from a builder that isn’t really well known in the market, avoid funneling your hard earned money for this project. Check the credibility of the developers and go take a look at some of their older projects. This will give you a better idea on how reliable they are.

·         Sorting out the Legal Documents 

The title deed is critical to any successful property transaction. If the seller isn’t able to provide a clear title deed, avoid investing in that property. Note that the absence of a clear title deed can result in legal problems in the future. Make sure you insist on one and have it verified by a lawyer before you confirm the purchase. Also make sure that all clearances related to the property are in place before you purchase the property and if it is still under construction, make sure the developer is able to provide you an allotment letter along with a development agreement. The allotment letter highlights the price of the property, the date of delivery, the floor plan and the details of the liability the builder holds in case of any delays. In the development agreement you will be able to confirm the terms under which the landowner has permitted to use the land.

Finally, make sure that all the taxes associated with the property you intend to purchase are duly cleared. If you have any kind of doubt, it is best to get an expert involved for assistance.