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Funfani.com - Spreading Fun All Over!INFORMATION CLUBInformative ZoneHome Sweet HomeTips for new home buyers
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Ryan Martis
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« Reply #6 on: July 13, 2009, 04:33:41 AM »
View it twice if you like it


Of course you are not going to buy the property without seeing it. But, don't make the mistake of taking your entire family with you the first time around. If they get over excited, the real estate broker is going to sense this, and then will exploit this to his advantage.

You must also visit the property at least a few times. Note how you instinctively feel about the property. Why do you feel this way? Can you really call this place home? Maybe at your second or third visit you can take the extended family with you to get their reactions as well.

Maintain a viewing checklist, on which you can rank the different properties you are visiting on the criteria that you have prioritised. Remember, you do not want to regret that you were forced into a decision to buy under pressure from a real estate broker or because you had very little time to view the property.
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« Reply #7 on: July 13, 2009, 04:34:47 AM »
Learn how square footage can magically disappear


Get familiar with the language and conventions used in real estate. When some one gives you an area for the property, always ask them what definition of area they are using. Here is why this is important:

Typically, the area that you pay for is higher than the area that you actually get. For instance, you will pay for a 2,000 square feet flat, but your usable area might only be 1,500 square feet. You will face a reduction in the area. In this example its 25%, but it could even be more in actual cases.

The square footage that you have lost is your share of the floor space of common facilities like walls, corridors, lifts, etc.). But, you will have to pay for the entire area, including the area that is lost.

Always ask what is the carpet area that you will get, i.e., the area over which you can actually spread carpet across the entire floor if you so wanted to do it. This, effectively , is the area that you will have for your end use.
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« Reply #8 on: July 13, 2009, 04:35:16 AM »
Review your financing options simultaneously


Just finding the right home is of no use to you if the deal falls through because you have not organised your funding. Often you will need to demonstrate that you have access to the funds to finance your purchase. Therefore, organise the money before you need them.

If you are self-funding your purchase, ensure that you have enough funds that you can access at short notice if your deal comes through and you are required to pay immediately.

If you need a loan, file an application with your chosen lender and get it approved. You can get approved even if you have not yet identified the property . This will save you time and emotional hassles later on in the process. Typically, such approvals last for six months which should give you sufficient time to identify a property.
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« Reply #9 on: July 13, 2009, 04:36:08 AM »
Buying directly from the developer versus the investor


These are boom times for real estate development in India. Developers are coming up with new projects all the time. Many investors have bought properties for investing purposes. You need to understand that there is a difference in buying directly from the builder versus from the investor in a property.

If you buy property directly from a developer in a project, it is likely that you will not have to pay any cash component and the entire payment can be in cheque.

On the other hand, if you buy from an existing owner of the property (even if its under-construction ), the owner will expect to earn a return on his/her investment , and might expect a large part of the payment in cash. You need to be aware whether you are capable of making cash payments. This is a reality in India and in many cases you will not be able to avoid it.
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« Reply #10 on: July 13, 2009, 04:36:57 AM »
Your current buy doesn't mean game over


As you and your family grow, so will your needs. You might get married, have kids, your parents might move in with you. Some unplanned events might also occur; for instance, you might get transferred to a new city. Don't see your current purchase as a dead end.

You can upgrade to a different property in a few years. Maximise what you need to fulfil over the next few years. Remember, you can always sell this property and use the sale proceeds to get another property.

Finally, with a little bit of attention to detail and awareness, you can become more confident even before you start the process. There is absolutely no substitute for the joy and pride that you will experience at your first home purchase.

(The authors are co-founders of iTrust, a financial advisory )
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