Buying A New House? Keep These Points In Mind

Home-buying, like any other major decision, requires a lot of research and consideration. It’s not just the flat itself that matters, but also the building facilities and the neighbourhood, among others. So, when you buy a home, knowing that it is a long-term investment not a one-time purchase, the financial aspects are more complex than you might realize at first. Here are a few points to consider:

· A square foot is not always a square foot. The term ‘Built up Area’ is used for the entire floor area, including the walls, whereas ‘Carpet Area’ is the usable area. Generally property dealers quote for built up area – so be sure that you are getting enough space where your furniture will all fit!
· Want to work out? A broker might tell you that the building comes with a pool or a gym, but forgets to mention that access comes for a price: some societies in Mumbai will charge as much as 15,000/month for access to their recreational facilities. Not economical right? These facilities may play a large role in your choice; factor them into your long-term budget, as well.
· Valet, please! Many Delhi bungalows come with parking; in Mumbai, however, parking is far more restricted. If you have a car – or more than one – be sure that, if your flat doesn’t come with a parking space, there’s ample street parking. Else the cost of parking will add up surprisingly quickly.
· The new neighbours. In both cities, each neighbourhood has its own character. Hauz Khas in Delhi is, like Bandra West in Mumbai, the trendy area of bars and restaurants; for those working with major multinationals, Gurgaon in Delhi NCR or Powai and Bandra Kurla in Mumbai – all of which were built up independently of the major metro itself – are likely to be more convenient. Similarly, these satellite cities and planned developments generally have better infrastructure, facilities, and security.
· Property prices. It’s not just about how much the property is worth, but how much it will be worth. As the metros expand outward, suburbs that were once isolated are now seeing surges in property prices. Lower Parel, Mumbai’s new financial district, saw 17% growth in the first quarter of FY14 alone. It’s also where a large number of the city’s new developments are coming up; returns on a purchase of property in this or similar areas are likely to be enormous.
· Metro in the metropolitan areas. The Delhi metro is definitely more modern than Mumbai’s (very prompt) local trains – but, with the launch of the new Mumbai metro, all that should change. Greater accessibility to the city centres means that property values – and potential returns on investment – in suburbs and satellite cities are expected to soar. The price growth in Navi Mumbai in 1Q14, for example, was an astounding 21%; the projected impacts of the Navi Mumbai International Airport and the Mumbai Trans Harbour Link are major catalysts.
· Trust, but verify. Not all properties are what the broker promised. When buying an existing property, check it out thoroughly. Consider getting it independently appraised. If you’re looking to purchase a property still under development, do due diligence on the builder. Price appraisals are important, but so are construction standards and schedules – you don’t want to be waiting until 2020 to move into a flat that you purchased in 2014.

The to-do list for buying a new home is longer than signing a contract, handing over money and packing up your belongings. In the major metro areas, where each neighborhood becomes a city within a city, the complications are even greater.

To sum up, basically when you decide to buy your own home there are a lot of emotions that go into the decision. For most people it’s a sense of pride and ownership; for many people their first property will be their last property. So, whatever you do or decide, you definitely need to consider and study the details of the above points in order to make your home buying experience as smooth as possible.

Author: Advitiya Sharma, Co-Founder & Marketing Head of Housing.com