Things to look after before buying a flat in India

Buying a flat is one of the most significant decisions you can make in life. And, for some, it could be a meaningful achievement in life.

The process of buying a flat in itself is both exciting and emotional. But since you’re investing your hard-earned money in it, don’t let it overwhelm you. Instead, make sound and thoughtful decisions that you won’t regret later.

To help you make a nuanced decision, I’m going to share a list of things to consider before buying a flat in India. So, let’s get down to the business and help you find a suitable flat.

Here’s the list of things to consider before buying a flat in India

Understand what you need:

The first thing to consider is what kind of flat you’re looking for that fits your needs. Are you looking for it because you want to invest and gain future returns, or do you want to live there?

If it’s about investment, you can buy a flat to either lease it out or sell it when the appreciation value increases. And for that to work, you must consult with local real estate agents to get the following information:

• Rental costs to live in the flats
• Appreciation growth rate

Having the latest information is crucial to make a sound decision.

If you want to live in there by yourself or with your family, you need to ask yourself the followings:

• Size of the flat
• Location
• When you want to move in

Flats are available in many sizes, 1BHK, 2BHK, 3BHK, 4BHK, and above. Depending on the family size, you should decide it.

If you’ve kids or elders in your family, you must buy a flat in a location that is near a school or hospital. Also, you should be able to transport to places, like a nearby railway station, bus stand, shopping mall, etc.

Moving into a new flat may take more time than you may think. Sometimes, it can take up to a year or two to complete the construction before delivery. So, it would be best to decide when to move, and then you can choose to go with an under-construction or ready flat.

Know about the current market prices:

After deciding on the location and the type of flat you need, it’s time to hit the market. It’s vital to know about the current market rates for a flat before planning your budget. As you know, mere hunches can’t help you plan anything, but numbers can. Not only in budget planning but also allows you to know about the available offers.

Time for budget planning:

One of the critical things to consider before buying a flat in India is your pocket. How much your pocket allows you. But don’t let the money limit you from buying your dream flat. Ask your bank for a loan.

Most banks and lending companies offer loans up to 80-90% of the total value of the flat. So, ensure that you have enough money to pay as a down payment.

Know your credit score:

Banks and lending companies love to give you a loan, as this is how the economy works. But are you eligible for that? To get the loan, you must have a good credit score and should be qualifying for it. For that, you should check with the respective bank or lending company.

Decide on the under-construction or possession-ready flat:

So far, you’ve decided the time you want to move into the new flat and your budget. Based on that, you’ve to choose between an under-construction or a ready apartment.

If you’re good to wait for a few months or years, go for ongoing flat projects. And enjoy the following benefits:

• You’ll be paying 10-30% less than the possession-ready flats.
• You’ll get a variety of offers and schemes on ongoing projects.
• The appreciation value of the apartment will increase over time while you’re waiting.
• All you need is to book the flat with token money, and the rest you can pay during the waiting period. Whether it takes months or years, you can make that payment comfortably.
• Once the flat is ready, you’ll move into a new flat with all the latest facilities and amenities.

Keep in mind that the waiting period could extend by a few numbers.

If you’re living in a rental house or flat and want to move in as soon as possible, go for possession-ready flats. These flats have their own perks, which are as follows:

• Instead of paying rent, you’ll be paying EMIs for your new apartment, which you own.
• You’ll get what you were promised, or you see.
• You’ll get easy loan approvals.
• You’ll get to know about your neighbors.
• You’ll be one of the first moving-in residents to enjoy the amenities.
• You won’t be paying any taxes.

So, whatever project flat you choose, ensure that RERA approves them.

RERA Approved projects:

The real estate industry today is different and has evolved. It’s way safer than the time your parents bought their first house. It’s now more transparent, regulated, efficient, and well-organized because of RERA.

The Real Estate Regulatory Authority protects buyers and investors from real estate fraud. Take this point as one of the necessary things to consider before buying a flat in India. The flat you choose should be part of the project registered in RERA. To confirm the project, you can visit your state’s RERA website and search in their database. You’ll find all the details about the project if it’s valid.

Amenities:

In this competitive world, all industries have become consumer-centric. The same goes for the real estate industry. The project managers tailor every project while keeping all age groups of buyers in mind. But are these amenities suit your needs? If not, move on to the next option.

Choose reputed builders:

Everyone prefers to have dinner at a decent restaurant. Why? Because of their past, background, quality, etc. The same applies here when choosing a flat.

You’re going to buy a flat, where you’re investing your hard-earned money. So, if you choose the right builder’s project, you get quality work and on-time delivery.

Check if the society has enough open space to accommodate its residents:

While buying a flat, you also purchase a personal space in the complex. Like you, many residents will use its amenities, such as car parking lots, gym, swimming pool, etc.

So, does the complex have enough space to accommodate every resident? You don’t want to live in a crowd and struggle to find a spot for your car parking.

If the complex has enough space for everyone, you should go for it.

Profile of the community you’re going to live with:

Being picky isn’t always bad; it’s just our preference. You may want to share society with a particular type of people or community. So, before you consider any flat, check who’s in your neighborhood. As you’re going to live with them in the building.

Check on units per floor for privacy:

One of the vital things to consider before buying a flat in India is the number of flats per floor. If too many flats are built on the same floor, you may encounter lift usage issues. And you may want to avoid getting into that.

Also, It could cause you a privacy issue. As too many flats are there on the same floor which are close to each other and share a common wall. In fact, you don’t want people next door to know about what’s happening at your place. So, look for complexes with flats built at a safe distance.

Small or large society:

Everyone has their own living preferences. Some prefer to live in a large community and others small one. Based on your preference, you must choose the society.

Is it safe to live there:

When you’re moving in with your family to a new flat, their health and safety would be your primary concern. So, ask yourself, is it safe there?

So, always look for a flat in a society that’s away from factories, garbage dumping, and similar areas.

The efficiency of the flat’s architecture:

Now, let’s talk about the indoors of your dream flat. One of the important things to consider before buying a flat in India is the efficiency of your flat’s design. You want to only pay for something that you can use.

Let’s understand this with the following examples:

• Raj bought a 1000 sqft flat with two spacious rooms, a kitchen, three bathrooms, a balcony, and a living room.
• Bobby bought an 1100 sqft flat with two less spacious rooms, a kitchen, two bathrooms, a big balcony, and a living room.

So, who’s got the sweetest deal here? Of course, Raj did because he’s got the best flat with no wasted space. Whereas Bobby bought a flat with a big balcony, but he compromised on bathroom and room space.

So, don’t be Bobby. Ask the builder to show you the flat’s drawings so you can know how efficient it is. Based on that, make your end decision.

Quality of the material used in the flat:

Quality is something that everyone admires. Since you’re going to buy the flat, you better ask the builder to give you the specification sheet. This will provide you with a concise report on the quality products used to construct the flat. Take this as a part of the crucial things to consider before buying a flat in India.

The contractor may show you a sample flat and promise you the same quality work. But mostly, that never happens. Cost-cutting is everywhere in every industry. So does real estate.

Many builders keep this specification sheet publicly on their websites. So, either ask them for it or download it from their website.

Maintenance cost once you own the place:

While talking about things to consider before buying a flat in India, you can’t leave this point out. When you use your flat, it’ll wear and tear out. Ultimately, it’ll need repairs.

Most builders sign AMC with the society for every repair and maintenance job, valid for a few years. And once the contract is over, the complex management can either renew it or do it independently. That’s why every society collects maintenance charges to do repairs and upkeep the amenities.

So, how much will it cost you for repairs and maintenance? In simple answer, you must inquire about it during the price negotiation process.

Rental value and property evaluation in the future:

Some of you may buy a flat for investment purposes and sell/rent it after using it for a few years when the price rises. If that’s the case, it would be best to check with a local real estate agent.

With the assistance of an agent, you’ll have an idea about the rent value you can earn if you lease out your flat. Or you can predict the future value of your flat if you want to sell it. Also, the same agent can help you find your tenants or a buyer for a nominal fee.

Get the sale-purchase agreement:

While booking your new flat, you must ask for the sale-purchase agreement from the contractor. This agreement proves that you’re the future owner of the flat, and the contractor is liable to deliver the flat after an agreed period.

But it would be best if you verify it with a lawyer to be on the safe side.

Know about the taxation and other benefits you can get from Govt. Schemes:

The Indian Government is doing everything it can to improve all industries in our nation. Every year, the Govt employs new strategies to grow both the seller and buyer.

In the real estate industry, Govt offers many taxes and subsidies to buyers on purchase. In fact, if you buy a possession-ready flat, you don’t have to pay taxes.

So, you must dig into this topic or get professional advice to save some extra bucks.

Overall, the journey of buying a flat yourself is a great experience. And To make it even better, use this list of – things to consider before buying a flat in India.

I hope you enjoyed my post and found it helpful. If you’ve got any questions, then leave a comment below. Also, share it with your friends who’re also planning to buy a new flat.