7 Things You Should Check Before Investing On Property: Buying a property, especially for the first time, is like a dream come true. However, this can sometimes be challenging if the buyer does not make the right choice. It is very important to ensure proper financial planning before making a final decision to invest in an asset. There are many factors that the buyer should be aware of by taking loans in credit tips. The buyer should try to maximize profit while buying such property which may vary from project to project.
Although there are many laws that stated that protect a buyer of the property, self-help is the best help and the buyer should be cautious before buying the property. Although the list which is given below does not contain all the details of necessary actions, some important aspects should be kept in mind, though they may vary in case:
1) Buying a property is a very difficult task, you should have a pre-agreed strategy. According to Rushak Shah, Director Sales, Hubtown Limited, “various tools like SIP, mutual fund or trading help in making an investment contribution. To get the loan eligibility for purchasing any property, there should be a good credit score. There is a good need for research and evaluation which can give good returns to the buyer. ”
2) Many times the property is sold by the person on behalf of the person who holds the power of attorney (POA). This POA should be closely examined to ensure that it has been executed properly. The Bombay Stamp Act, 1958 was revised a few years ago, by which heavy stamp duty is attracted on the POA, in case if a person related closely to the person executed for selling POA real estate is not executed. Thus in most cases, a POA defined under the Act is executed to a close relative.
3) Aditya Kedia, Managing Director (MD) of Transcon Developers, says, “To buy a property, the buyer should pay more attention to credit tips, the buyer should check location demographics for good returns in terms of buying investment property. The buyer should check at least the last 3 years of appreciation, before investing their hard-earned money. The buyer should also explore the basic infrastructure development scheme.
4) There are various types of loans that can be availed for buying a property. According to the Aditya Kedia, MD of Transcon Developers, “Everyone is aware of normal home loans that are offered by various banks. While taking a Home Loan there is an option where the buyer start their EMI immediately which will save their pre-EMI interest. Other than Loan against property is an option where the buyer can avail loan at an attractive rate of interest. Top up loan is the second option which gives the buyer an option to avail extra home loan against their existing loan”.
5) The land tenure should also be an important point before buying a property. For example, if the land is the leasehold and the residual tenure of the lease is short-term and if there is no provision for the renewal of the old rented, extra land rent may be payable by the buyer on the renewal of the lease. It is also possible that there is maybe no renewal clause at all.
6) According to Rushak Shah, “In order to purchase the property, a buyer should pay more attention to payment terms, GST offset and higher down payment. The size of the property is also important. Recently, there are many affordable housing options available in the market which a good place for people with the limited budget to learn about property investments”.
7) While buying a property, the buyer can avoid loss of tax breaks. According to the Aditya Kedia, “Buying a property with occupation certificate is one of the safe options. However, there are many developers who are not giving any GST plan these days which help in saving taxes. There are many package deals which will also help the buyer in saving taxes. If a salaried person is taking a loan then one can even save up to Rs. 2 lakh on interest.”