A Checklist Before You Buy Property in India
Posted by admin under: Buy Property Jul 03
Investing in real estate in India? Tread carefully to avoid future problems. New investors should see to the fact that all the terms and conditions regarding title are laid down clearly or else ownership claims may run into long-term litigation. Once the land is bought, the whole area should be fenced to prevent any kind of encroachment. Also adopt security measures to prohibit any sort of illegal occupation.
After the property is bought, next step is the task of developing it. While doing so, you may again face another set of issues. Plumbing, water supply, and electricity are some of the issues, which have to be taken care of. Moreover, if you buy an agricultural piece of land, you may not get government permission to erect any kind of construction, as per the rules.
While investing in an agricultural land in India, one has to be even more careful, since the terms and conditions in this case are more complicated. For example, one person may be the owner of the land while someone else may have the ownership right over the crops grown on it. Such a thing will obviously create confusion over possession of the land. In such cases, the buyer should always keep a handy copy of the plan approval by the regulatory authority before buying the agricultural land.
If one is interested in investing in an apartment which is under construction that would definitely cost him much less than buying one which is absolutely ready for sale. However, in this case, the investor should examine the certificate containing the commencement details of the entire work of the building and check out that the titles are put down in clear and specific terms. Also, the investor should check out that enough work is going on at the site with a minimum of two slabs constructed at the initial stage.
Now, if you want to buy a fully ready apartment, in that case you have to examine all the basic features such as floor-finish, the type of paint used, necessary amenities, kinds of switches used, windows, doors, other permanent fixtures, plumbing, and finish of the common area. If you take a home loan before buying the apartment, the real repayment begins only after the financing company disburses the last and final amount. However, the consumer will have to pay a pre-EMI until the very final disbursement is issued from the home loan financing company to the real estate promoter, who us building the apartment.
Hence, if construction work gets delayed, the last disbursement also gets delayed accordingly, and the investor suffers losses by paying even more pre-EMI. Such problems definitely do not come up when a fully constructed apartment is bought because, in those cases, repayment starts immediately.
If somebody is buying an old house for its beautiful gothic architecture or for purely some sentimental reasons, be aware before you actually go for buying it, as the government may have declared it as a heritage property because of its historical value.
Government of India has actually classified all the constructions into three different categories namely Grade I, Grade II, and Grade III. Grade I constructions have much monumental and historical value added to them. Any kind of alterations in the construction is strictly prohibited in these structures. These are generally owned by the government and are inaccessible to common public. Grade II and Grade III constructions are those on which minor repair work and alterations are allowed but obviously with the permission of the regulatory authorities. Grade II constructions allow a few interior changes and minor repairing, and lastly, Grade III constructions are those which permit changes related to design as well as reconstruction provided that these changes should definitely match the originally plan. Real estate in India is a great place to invest but educate yourself about the rules and regulations. Properties in India are fairly priced after market correction, but do not make hasty decisions.
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Sunday, July 3rd, 2011 at 7:39 pm and is filed under Buy Property. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.