Tips for buying properties in India

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    Tips for buying properties in India

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    The reason you should go ahead with reading this is because... This article gives you an insight from both seller and buyer perspective of buying a property. Some may wonder why there is a need-to-know tips from a seller perspective, as they are the people making the profits. Here’s why considering seller perspective is also important while making a purchase of real estate property.

     A seller before pitching the idea must educate himself of both the Pros and Cons of the property he is dealing with. Hence, it is an advantage to know what the seller’s opinion is about the property as there is no one better to keep you better informed rather than a person who learns about properties for making a living. 

     One of the most important questions to be asked to the seller is the quality of construction! This is what determines the worth of your purchase. This cannot be easily judged hence it is mandatory to find an Agent who is trustworthy and loyal... A person who can give you an unbiased opinion of the property and if in case there is something that makes the property a bad investment it is his job to bring under the light for you.

    In this economy when you deal with Purchasing of a property there is a certain some-one called the consultants. These people make sure that they give you an insight free of cost and also help you in getting the best price possible. As these companies are the official RERA Approved Consultants for the projects. These people deal with all sorts of clients with varying budgets. But the only constraint is that they deal with only BUYING of PROPERTIES. 

    These days while investing in a Project people prefer to purchase during the Pre-launch period. The one thing the customer requires is the On-Time delivery of his Home or Investment he has purchased so that his future plans remain unhampered. For checking the authenticity of the builder, it is a MUST to check the history of delivery of his old projects which will give you an insight of the History of the builder and the Goodwill the company possesses. 

    Lastly speaking about the payment plan. It is very important to evaluate the payment plan offered by the Builders! It must be something that does not turn out to be a burden on the buyer’s pocket. As we all know buying a property deals with a lot of money being spent initially and also the EMI’s that have to be paid on a monthly basis must also be considered! A lot of properties these days give you a pocket friendly plan where after purchase and payment of the Down-Payment there is a certain grace period they offer before you even start paying your monthly bondage of EMI’s.

     With just considering these mere facts it is possible to make a healthy investment in the real estate sector. Those being a good channeling partner with brilliant sales executives and a good and thorough research about the project! A few extra precautions may be taken by following these methods of dealing.

    After you paid the deposit, your lawyer should check whether the seller is the legitimate owner of the property and allowed to sell it. There should also not be any outstanding mortgages on the property. The seller should provide a no encumbrance certificate stating that the property is not already mortgaged.

    When all documents are approved, they have to be stamped at the Stamp Duty office. You and the seller have to sign them and you have to pay the outstanding sum. Finally, to become the legitimate owner of the property, you need to register with the Registry of Deeds. Your final governmental duties have to be paid now. They include Stamp Duty of between four and fourteen per cent, depending on the region. An additional registration fee has to be paid as well. It accounts for one till two per cent of the property price. There can be occasions where the said person can’t be physically present in India to buy a property, POA (Power of Attorney) is there. What this means is that an NRI can choose someone close to them such as a relative, friend or even colleague and allow them (legally) to complete the transaction on your behalf. However, to get a valid POA you have to visit the Indian Embassy of the city and country where you are located.

    In the end, being distantly involved in real estate related activities can put you in a situation to bear losses. Having agents engaged in today’s time is misleading and increases the overall cost of transactions. It is a wise decision to look for real estate developers who do not involve brokers and rather involve channel partners who have a much more evolved process.

    If you’ve ever wondered if you being an NRI can apply for a loan in India? The answer is, yes! NRIs can avail home loans from Indian banks and financial institutions to buy residential units, whether apartments, row houses and bungalows or land for building a home. Documents needed to process loan applications include salary slips, bank statements, copies of passport, valid visa, work permit, employment contract, work experience and salary certificates and statements of non-resident external (NRE) or non-resident ordinary (NRO) accounts, says Renu Sud, Managing Director, HDFC. “Tenure for home loans to NRIs is up to 15 years, depending on the age of borrowers, their profile and credit worthiness.”

    Another query related to an NRI would be that in case he wants to buy a home in the form of a joint venture, is that even possible? NRIs can apply jointly for home loans only if the borrowers are related to each other either by blood or by marriage. “In joint home loans co-borrowers need not be co-owners in the purchased property but all. co-owners of the property have to be joint borrowers,” says Karnad. 

    To get quality support in the area we specialize in you can go ahead and book a site visit right here on our website where we can give you insights about all the upcoming projects that are RERA approved and have a sustainable foreseeable future. 

    Happy Buying

    Real estate investment has long been heralded as a reliable avenue for building wealth. Unlike the erratic nature of the stock market, real estate offers a tangible asset that appreciates over time and generates steady income. But what exactly makes real estate such a lucrative investment? Let’s dive into the various facets of return on real estate investment (ROI), its benefits, potential pitfalls, and strategies for maximizing your returns. What is ROI in Real Estate? Return on investment (ROI) in real estate is a metric used to evaluate the profitability of an investment. It’s calculated by dividing the net profit by the total cost of the investment, then expressing it as a percentage. In real estate, ROI typically manifests in two main forms: capital appreciation and rental income. Capital Appreciation Capital appreciation refers to the increase in a property’s value over time. Several factors can influence this appreciation, including: Location: Properties in desirable locations tend to appreciate faster. Market Demand: High demand for real estate can drive up property values. Economic Conditions: A strong economy generally boosts real estate values. Property Improvements: Enhancements and renovations can significantly increase a property’s market value. Rental Income Rental income is the revenue generated from leasing a property to tenants. This income stream is particularly attractive for several reasons: Steady Cash Flow: Regular rental payments provide a consistent income. Mortgage Coverage: Rental income can help cover mortgage payments, easing the financial burden. Passive Income: Over time, rental properties can become a source of passive income, especially if managed by a property management company. The Benefits of Investing in Real Estate 1. Tangible Asset: Unlike stocks and bonds, real estate is a physical asset that you can see and touch. This tangibility offers a sense of security and stability. 2. Leverage: Real estate allows investors to use borrowed capital (mortgages) to purchase properties. This means you can control a large asset with a relatively small initial investment. 3. Tax Benefits: There are numerous tax advantages for real estate investors, including deductions for mortgage interest, property taxes, operating expenses, and depreciation. 4. Inflation Hedge: Real estate values and rental income often increase with inflation, providing a safeguard against the eroding value of money. Potential Risks of Real Estate Investment While real estate can be lucrative, it’s not without risks. Here are some potential pitfalls to be aware of: 1. Market Volatility: Although generally less volatile than stocks, real estate markets can still fluctuate based on economic conditions and market trends. 2. Property Management: Managing rental properties can be timeconsuming and challenging, especially if you have difficult tenants or maintenance issues. 3. Liquidity: Real estate is not a liquid asset. It can take time to sell a property and convert it into cash, especially in a slow market. 4. Upfront Costs: The initial costs of buying real estate, including down payments, closing costs, and renovations, can be substantial. Strategies to Maximize Your ROI To maximize your ROI in real estate, consider the following strategies: 1. Location, Location, Location: Invest in properties in desirable locations with strong growth potential. Research local market trends and economic forecasts. 2. Buy Low, Sell High: Look for undervalued properties or those in need of renovation. Improving a property can significantly boost its value and rental income. 3. Diversify Your Portfolio: Don’t put all your eggs in one basket. Diversify your real estate investments across different property types and locations. 4. Leverage Wisely: Use financing to your advantage, but avoid overleveraging. Ensure you can comfortably cover mortgage payments and other expenses. 5. Professional Management: Consider hiring a property management company to handle daytoday operations, tenant relations, and maintenance issues. This can save you time and stress while ensuring your property is wellmaintained. 6. Stay Informed: Keep up with market trends, economic indicators, and changes in real estate laws and regulations. Being informed allows you to make strategic decisions and adapt to market changes. Personal Insights and Conclusion Investing in real estate has been a cornerstone of my wealthbuilding strategy for years. The combination of capital appreciation and rental income has provided me with a stable and growing source of revenue. While it’s not without challenges, the benefits far outweigh the risks when approached with careful planning and due diligence. Real estate investment requires a commitment of time, money, and effort, but the potential rewards make it worthwhile. Whether you’re looking to diversify your investment portfolio, generate passive income, or build longterm wealth, real estate offers numerous opportunities. Remember, the views expressed in this blog are solely my own. As with any investment, it’s crucial to do your own research and consult with financial advisors to tailor your strategy to your unique circumstances. By understanding the nuances of ROI in real estate and implementing smart investment strategies, you can navigate the market effectively and achieve your financial goals. Happy investing!