Selecting the best property is not easy and it is advisable to exercise caution. The job becomes even more complex when we have to play within a stipulated budget. The real estate market is always booming with myriad options like residential, commercial, villas, bungalows and land. A detailed research, however, can lead us to choose the desirable property within our budget. Some factors that must be kept in mind are:
Understanding own requirements
Even before we buy a property, the important question is WHY. Digging deep into our why, helps us to sort and filter our choices to a great extent. The property could be a commercial or a residential one. We need to know the purpose of our purchase, whether we are buying it for our own utility, is it only for investment, are we expecting rental yield or are we looking at it as an estate management asset. Once we establish our why, we will be able to take decisions based on various factors. We can think on the lines of our needs related to the look of the building, the area, space, amenities, budget, location and much more.
Location that suits you
Location always plays a pivotal role in selecting the right property for ourselves. The location of a property determines its value to a great extent. A property in a developing area which is far away from the city will sell at a cheaper rate which obviously will look attractive to us. But a property like that will have its own challenges of lack of availability of essentials, lack of easy transport facilities, inadequate public infrastructure and so on. A property in an area like that, however, does offer peace of mind and calm. Properties located in the city area are likely to be expensive but they offer a desirable lifestyle where all essentials are in vicinity. Travel is a lot more easier and access to public infrastructure like schools, hospitals, supermarkets is simpler. If we prefer to enjoy all of this, we must look for a dwelling which is priced higher. So, we need to first know what our lifestyle requirements are and weigh them well.
Calculating our budget
After having clarity on why to buy a property in the first place, we must estimate the budget we have in mind. Real estate investments always are a bigger chunk of our kitty and we must be sure of various factors before we make the decision. We should be clear on our payment. In case we plan to take a loan for purchase of property, we must be aware of the loan rates, fees and other charges, any schemes and subsidies offered by the government and own capital adequacy. We must also factor in the other costs while purchasing the property like stamp duty, registration, broker’s fees and so on. These factors contribute towards raising the actual payment made by us over and above the value of the property. Proper budgeting in advance helps us to take the correct decision.
Market Understanding
There are various dynamic factors that rule the real estate factors. Interest rate is one of them. Interest rates keep changing and that can have a huge bearing on our purchase decision. Understanding and awareness of the same helps. We can wish to connect with market specialists and look forward to their guidance. Investing in an area that is still developing will be a reasonably cheaper deal. Also, if we invest in a project in its pre-launch phase, we stand to gain more. Investing at the right time in the right property is important in order to maximise our benefits.
Reputation of builder
While we always want to buy more for less, real estate purchase decisions have to made with caution. It would not be wise to undermine the reputation of the builder. A smart investor would never get lured by cheap rates and invest in a property which might offer compromises on basic hygiene factors. We must always choose to buy from a builder who is known to keep commitments, has a clear documentation work, offers space management and effective layouts and assures quality at each and every step. Whether we choose to buy a commercial or a residential property, some basic needs must never be compromised since real estate purchase is always a big decision and a wrong decision made here can have a huge impact.
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