Buying property is a major investment, and for most people it means taking a load from your bank and then paying it for several years to come.
The huge financial responsibility of buying a home means that you need to be very careful at the time of investment. Carelessness on your part can cost you dearly, and can leave your entire investment worthless. Just like there is a list of things that you must always do when buying a property, there is also a list of faux pause that you must avoid at all costs. Knowing what not to do is very important when it comes to real estate investment and can be the difference between a valuable investment, and a complete waste of time and money.
Thousands of people are getting ready to invest their hard earned money and get a home for themselves and their family. With a little care, and some research you can make sure that your dream home becomes a reality. There are some things that you should avoid at all cost, and knowing about them will help you make a solid investment.
Common mistakes that people make when investing in a property
Investment is properties are a time tested practice that always yields profitable returns. But, many of us, often, do not research much about investing in properties and thus, face drastic results.
As with any investment, buying property also carries its risks. You can minimize this risk considerably by arming yourself with proper knowledge about the real estate market, and making sure that you are familiar with all the standard practices when buying a house. You are knowledgeable about all the ways in which a developer might trick its customers; you will be able to get the best possible deal.
Never make a purchase decision in a hurry or in a rash manner: Do not believe the dealer when he says that prices of the property will get revised and become more expensive. Or that there are a lot of potential buyers who may finalize the property in case you take too long to make up your mind. While price revisions do happen, and properties at times are purchased by other buyers, in the majority of cases, the seller is much more desperate for a deal than you are. You will always find a better deal if you take some time and look around properly, and you should make sure that you are satisfied with every aspect of the property before you pull out the cheque book.
Never ignore the fine prints: Businesses thrive on fine prints, and always have clauses in their contracts that try to make them immune from as many responsibilities as they possibly can. From possession dates, to quality of work, the contracts are the key to knowing what exactly you will be getting for your money. Never sign the contract document without reading it, and if you are not able to understand the legal terms, consult a friend or a lawyer. Do not hesitate to tell the dealer that you need to go over the documents first before you can commit. You are entitled to this, and doing it may save you lacs of rupees.
Do not believe everything the dealer tells you: Dealers will make a lot of promises to get you to sign the contract papers. They will often tell you that your finished home will look just like the sample model they showed you, but this is rarely true. Even if they deliver the exact same specifications, it will almost certainly cost you extra. Builders offer a lot of freebies in an effort to entice you. Most also have tie ups with banks to help you secure a home loan faster. All of this never means that the project is legitimate, and that your investment will give guaranteed results.
Avoid investing in projects offered by new developers: One of the reasons people prefer known developers over new ones, despite higher prices, is that the established developers have performed well in the past, and you can safely expect the same level of service from them. Just make sure that you verify any claims that they make to you, and you will be able to secure a great investment for your money.
The author runs a real-estate company in Chandigarh and likes to keep the track of real-estate developments all across the country. The other interests of author include cooking and playing football.
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