MONEY WISE – How to buy smart

Buying a home during the festive season is considered auspicious in our country. Lucrative offers by real estate developers during this time add to the joy of investing. It is that time of the year when people want to make new investments and purchases. Keeping this in mind, real estate developers offer discounts and float schemes to cash in on the festivities. They offer freebies such as gold coins, cars and holiday trips for booking during the festive season. This year, with slow sales, developers have been leaving no stone unturned to clear their unsold inventory. To encourage people to buy, they have been coming out with various schemes and even negotiating prices with potential buyers.But, it is equally important to invest wisely. Here’s a checklist to help you decide right.

EXERCISE CAUTION

This is one time when there are maximum offers being announced by developers. However, a prospective homebuyer must exercise caution so that he or she is not allured by those offers.“Rates tend to be competitive during this time and properties are usually backed by discounts during the festive season, but as an individual, one should shortlist the projects and only consider the locations which are backed by good infrastructure,“ says Anuj Puri, chairman and country head, JLL India.

PAYMENT OPTIONS

Some of the recent payment options doled out by the builders include payment schemes such as 20:80, 10:90, no EMI till possession, stamp duty waiver on registration, or freebies like car parking and other home appliances.Some builders are even announcing freebies like gold coins or holiday trips to foreign locations.

“It is very important for buyers to exercise caution and do their research on property and the offer made.One of the most important things which every buyer should clarify is whether the discount is only on the carpet area or super built-up area,“ suggests Shveta Jain, managing director, Residential Services, Cushman & Wakefield.

COMPARISON OF PRICES

Hard discounts are definitely the most desirable scenario for end-users and investors alike, but even in case of discounts, investors should establish what the prices were prior to the announcement of discount. It is also good to double check the prevailing prices. “Offers wherein developers will waive stamp duty and registration can also be considered, as this translates into an actual saving on the cost of the property,“ Puri points out.

RIGHT PROPERTY

Schemes such as reduced home loan rates and discount on property prices are an added bonus if one finds the right property. But homebuyers need to be aware about other important points like sundry costs and actual site conditions. “Buyers should get all the important documents related to property and discuss their doubts like payment schedules, loan amount, possession date, EMIs, etc.One should only invest in projects which are right and worthwhile in all aspects,“ suggests Deepak Kapoor, president, CREDAI, Western UP and director, Gulshan Homes.

REALTY CHECK

It is one of most critical and important things for a buyer to check all the papers before taking a final call on invest ment. “The buyer should look for a list of approvals that the builder needs to ob tain. This includes building plans and approvals from various regulatory authori ties. The structural safety certificate, no-objection cer tificates by civic authorities, environment clearances, bank approvals, urban land ceiling certificate, com mencement certificate, and title deed are some other ap provals that builders need to obtain. Additionally, it is im portant to ascertain whether the builder is financially ro bust, and would be able to complete the given project on time,“ says Jain.