If you are planning to buy an apartment in Gem Nakshatra, Hyderabad, then you might need a few tips on how to go about real estate investments. Following these tips could save you from a lot of trouble in the future.
Here are some tips that could come in handy while considering real estate investments. However, you may want to keep in mind there is no harm in doing some homework before you pick up the flat keys of your dream apartment:
Understanding your buyer:
As an investor, you should try going the extra mile to ascertain the identity of your seller. This can be done by checking the KYC documents of the property developer. These include PAN card, Adhar Card, RERA number among the crucial documents. Reviewing these records can help in establishing the credibility of the developer. In the case of Gem Nakshatra, the property developer is registered with RERA;, hence, you are assured of a credible builder.
Getting everything in black and white:
Many developers make vague claims about their properties but don’t state them in writing. For example, a developer might offer a final date of completion of the flat, verbally. In that case, you could insist that he commits to that date officially. This can help you in planning other activities like arranging for funds, renewal of your rental agreement with the landlord, and other critical details. In short, you may want to tie your developer in a water-tight contract.
Important documents of the property:
While negotiating with your developer, it is a good idea to check whether the following documents are in place.
a) Lease Deed.
b) Permission of Occupancy Certificate-This document is issued by regulatory authorities and certifies that the said property is fit for living.
c) Permission from the Fire Department.
d) Building Plan-It is a good idea to check whether the plan that you have matches the one that has been sanctioned by the regulatory authorities.
In addition, you could also find out whether your flat is free from legal issues. Some fly-by-night developers sell the same property twice and thrice to different buyers leaving all buyers high and dry. Perhaps, you could also think of hiring a lawyer to find out whether your property is free of any legal issues.
If you are planning to invest in Gem Nakshatra or any other property, conduct some research to gauge its past valuation. Once you have the previous trend of property rates, you can find out the historical and future value of your property by checking its circle rate.
This rate is fixed by the state government and points out the likely gain you can make in the future after selling your property. Circle rate related information is available on the internet just download and read, but you may have to make a few trips to the concerned local government office to get the right picture. You can even engage a chartered accountant to get a full description of your circle rate and yields.
Lease or Freehold:
Some flats in Hyderabad are on lease while others on freehold. Flats on lease are held or owned by the local regulatory or state government authorities, and flat owners have to pay a lease fee or a ground rent to the former periodically. Freehold flats, on the other hand, are the property of their owners. You can convert your leased flat to freehold status by paying a one time fee to the concerned regulatory authority. You may want to check with your developer whether your flat is on lease or freehold.
Pro tip- Most ads about 2 bhk flats for sale in Hyderabad do mention their freehold or lease basis.
Floating versus Fixed Rates:
To buy a flat, a buyer needs a home loan. Many banks and institutions in Hyderabad offer home loans to finance your dream. In this context, you should have clarity on the difference between floating and fixed rates. Fixed interest rates are constant irrespective of the market movements. Floating rates change periodically and are linked to the interest rates prevailing in the market.
It is also essential to finalise a mutually agreeable payment schedule with your builder. This way, you could make your payments according to the various completion stages of your flat.
Super Area versus Carpet Area
The term carpet area refers to the liveable space, i.e. the scope of your flat. Super Area, on the other hand, refers to the entire area of your residential complex.
To summarise, as a first-time buyer of a flat in Gem Nakshatra Hyderabad, you could follow a few necessary steps to safeguard your investment. One way to do so is to check the authenticity of your buyer via relevant documents, and insist that your developer commits every promise in writing.
Prafulla Mishra is an experienced real estate & financial advisor who is well known for his ability to foretell the market trends as well as for his real estate astuteness. Prafulla has also amassed a great name for himself as a blogger.