Checklist for Home Buyers

lemont By lemont, 22nd Jan 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/1v7h3pkc/
Posted in Wikinut>Guides>Property & Real Estate>Buying A Home

This page will help the home buyers, especially first time home buyers. We have covered almost all the aspects one should look in to before finalising the property. It's a Checklist one should refer before finalising property investments.
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Check the Builder profile/Background

Builder background is very important "past helps in understanding the future".
Whether the builder have delivered any project.
Financial background of the builder.
Projects under construction.
Projects delivered.
Quality and timely delivery of the project.
Whether commitment fulfilled or not.
Maintenance of society.
In any litigation with authorities, Dwellers etc

Ask for Necessary approvals

For executing the project few approvals are required in hand:
Land clearance
Environment clearance
Project layout is passed or not
Bankers approval
almost all the approvals remains missing in case of Soft Launch.

Is property Bankable ?

It is very important point to get clear from builder whether the project is bankable or not. Ultimately if you are opting for housing loan you must know the property is bankable or not and which banks are providing loan for the property.
Confirm from bank whether the project is approved in the list of banks approved project.

Cost Sheet of Flat

Important points one should look into cost sheet.
Power Installation, Power back up charges as per feasible requirement of the flat.
Service tax must be calculated carefully.
Discount on form and credit note properly adjusted or offered through printed credit note.
Car parking is Stilt, open, covered, basement.
Club charges are inclusive or exclusive.
Preference location charges for floor, Green, Road, Corner facing sometimes 10 to 20 % impact over cost of flats.

Location and connectivity

You should ask the consultanats about the connectivity of transport, Airport, Railway station,metro
school, hospital, Colleges, Shopping malls etc.
Along with this you should also check through Google
is there any sewage treatment plant, Moritorium, Factory, Canal, Village, Garbage dumping zone etc
This can effect your decision of buying a house.

Taxes that levied over Property

Home buyers must ask at what rates taxes are levied and how many types of taxes they need to pay over the property.
Service tax over Basic selling price @3.09% as on date.
12.36% over Carparking and Club.
If you are buying some Ready to move property you have to pay registery charges that generally come around 6-7 %
These rates may change by time. But these tax have a material impact over the property you are buying so consider the additional cost of around 10 %.

Discount

Discount impacts your net payment for the property you finalised.
a) Inaugral discount: Generally company provides discount for the limited period at the time of launch.
b) On form adjustment Discount is deducted from the basic selling price which decreases from total cost.
c) Any discount over and above on form is adjusted by issuing credit note, whcih reimburses after payment of certain percentage.
One shold try to negotiate for best on form discount as most of the cases brokers try to dishonour credit note.
Buyer must ask for written credit note before clearing of Application money for booking.

Payment plan

One should choose payment plans carefully as availability of cash surplus is main factor in choosing the plan.
Construction linked where payment are made with the stage of construction, here generally builder demands 20 % payment within 60 days of booking.
Down payment plan is where 95% payment is made with in 45 days buy here the buyer gets 10% discount over BSP.
Flexi payment plan 50% payment is to be made with in 45 days and rest as per the stage of construction.

Penalty over Delay

One must check what penalty company will pay delays in possession of property, if you are a end use you must check what cost you are going to bear for taking the rented property. If the builder has delivered the projects in the past then you can check whether the builder made the penalty payment timely or not.
Delay in construction cost your pocket, here you can decide which builder you should go for.

Interest over delay Payment of Instalment

Interest over delay payment should be clear at the beginning, and at what rate interest will be charged and for what period. Would there be any other penalty over and above interest on delay payment of installment.

Transfer Charges & Terms of resale

What are the transfer charges in case you transfers the property before possession and after how much payment company allows to transfer the property.In some case first transfer remains free of cost. Generally company charges some amount in the name of "transfer charges", which company can change any time. Those charges are important factor for investors to book the profits on under-construction property.

by www.iZIPROPERTY.com

moderator Mark Gordon Brown moderated this page.
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