Parameters to consider before purchasing a home

All, Miscellaneous, Project Management & Advisory

To begin with, if you are looking to buy a home then look for an offer that fulfills your basic requirements and if you are looking at buying a house as an investment then look at the most lucrative offers available in the market. Now let’s look at a few parameters, both external and internal that need to be considered before making a property purchase.

 

External Parameters: -

Location and Developments - To begin with, ensure that the location is closer to public transport hubs like metro and railway stations, etc. At the same time, there should be close proximity to schools, hospitals, restaurants, banks and more. A location with these amenities will remain an asset irrespective of the status of the real estate market. You should also check if there are major developers investing in the area, as most developers invest a lot of time and effort into market research of the area before investing. Both these factors would lead to a continuous appraisal of the property in the long run.

 

EMIs and Tax Benefits –

In case you are taking a housing loan, it is important to keep the EMI levels in mind. A well thought out mortgage plan will enable you to attain certain tax benefits as EMI payments up to a certain level are tax-deductible expenses. 

 

Safety & Security –

This is a very crucial parameter to judge before deciding on a location and building to make a purchase. The area/complex/building should have sufficient provisions for safety & security like security teams, firefighting equipment, fire checks & compliances, CCTVs, access cards, biometric door locks, etc. The property is your asset and before making a purchase decision, one needs to deep-dive into the safety and security mechanisms devised to protect that asset.

 

Maintenance costs –

Other than the purchase cost of the house, there are ancillary costs like the monthly maintenance bills. It would be wise to look into the additional amenities and frills the developer is offering as the costs of operating such amenities would be very high in the long-run. Get a thorough detail of them, calculate the final number and then make your purchase decision accordingly.

 

Internal Parameters -

Systems – Check the age and condition of all the systems in the house i.e. water heater, air conditioning systems, electrical systems and wirings, plumbing amongst others. This is beyond the regular home inspection that is done. Please ensure that the systems are in proper working condition before you move in so that you do not face an issue immediately after moving in. And if there is a problem beforehand, you can either have it fixed or use it as a clause to negotiate a better amount.

 

Leaks and breakages – 

A pipe leak is a very common problem, however, it cannot be overlooked and needs immediate attention. So it is really important to look into all the leakage issues as quickly as possible, as a delay will not only be dangerous but will also be quite expensive. Do a pre-check of all the breakages that may be a concern for safety for e.g. a broken step or a crack in the ceiling and have them repaired by the current owner before your purchase.

 

Renovation -

Many buyers these days are willing to undertake renovation projects for a lower price. But post the purchase when a renovation project is undertaken, you end up discovering many other problems that were not visible earlier. Please audit the house thoroughly and completely before you buy or keep a 10% extra margin in your renovation budget for unexpected surprises.

 

Besides these, you might want to consider the below parameters as well:

Are the building and roof structurally sound?

Does the house have the required number of rooms as per your needs?

Is the house termite proof?

Does the house have good natural light?

Does the building provide sufficient parking space?

Is there sufficient water supply in the area?

Are amenities such as telephone and internet connectivity easily available?

Is the neighborhood safe and secure?

 

Make a checklist of all your requirements and once it is in place, you can then select the right time to make the purchase. The festive period around Diwali and the fiscal year-end are the best time to purchase as that is when the best offers are available in the market along with the additional incentives and the developers give really good offers especially during the year-end as they need to make their books look good before the year ends.