4 Factors to Keep in Mind Before Investing in Property

Investing in a real estate property is a big decision as it requires a considerable amount of money. Unlike other investments, real estate does not have much liquidity. Hence, before you commit yourself to invest, it is better to do extensive research and checks. Here are a few vital factors that you must keep in mind before investing.

·Analyse your finances

This may seem like the obvious thing to do, but many people take the investment plunge without assessing their finances. Before you make the decision to invest in a property, it is better to take note of your current financial condition. Review your assets, investments, financial goals, and ask yourself if you have sufficient resources to afford to buy the house.

If you are thinking of a home loan, you must have the necessary income and financial cushion to be able to repay the same without any hassles throughout the tenure. Don’t ignore the exigencies, make sure to have enough provision for such unexpected expenses like medical emergencies. 

·Look for the best home loan offer

Once you are certain that you have the necessary financial ability to afford to buy a home, the next step is looking for the best home loan offer. Today, many lenders in India offer various loan schemes. Make sure that you carefully compare the different offers, in terms of interest rate, charges, flexibility in repayment terms, approval process, the reputation of the lender, etc. before choosing the right lender.

·Check all the documents

One of the critical factors of buying a real estate property is to verify the property-related documents. This is vital to avoid any legal issues later. Before you proceed with the property-buying, you must check if the builder or the seller has obtained necessary documents such as an encumbrance certificate, khata certificate, OC (Occupancy certificate), etc.

Make sure that you verify the authenticity of these documents with the help of legal experts. Generally, when you apply for a home loan, the lender appoints a legal team to verify these documents before approving the loan. But it is a good practice to check the documents by yourself.

·Check if the builder as obtained all the approvals

As per the RERA (Real Estate and Regulatory Authority) regulations, all builders are mandated to register their projects with RERA. As a property buyer, it is your responsibility to check if the builder has complied with all the RERA regulations. You can find all the information about the project on the RERA website.

You must verify if the builder or the seller has obtained all the necessary approval from the local civic authorities and has paid all the taxes to the municipal body. If you find that the builder has defaulted on the tax payments or has any other legal case registered against them, it is advisable to avoid investing in the project.

Final Word

As a property buyer, you must exercise caution at every step. You must never take any decision in haste, especially when it comes to availing of a home loan and signing any loan or property-related documents. Investment in real estate property has been considered a fruitful one for a long time, and it continues to remain the same. So, keep the above-mentioned factors in mind and make the most of your investment in real estate property.

News Reporter