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10 things you must check before buying property


Girish Agarwal, 45, has been trying to sell his house since February. He had bought the property five years ago thinking real estate prices would continue to rise at a fast pace. After struggling to find a buyer, he recently reduced the asking price. Still, there are no takers.

"Brokers say the sale may take some time as the market is going through a slowdown," he says. This is not the only issue he is grappling with. He is still to get the possession letter from the builder as the project has not got environmental clearances yet. The scenario was not so bleak when Girish had bought the property in 2010. Prices then were rising at a fast clip, making real estate one of the most sought-after investments. Things would not have been so difficult if he had not taken a loan to buy this property.

He also has to pay equated monthly instalments, or EMIs, for the house where he is living at present. With a major portion of his salary going towards paying EMIs, his finances are stretched. He wants to dispose of the second house as soon as possible. There are thousands of people like Girish who, in the hope of making a quick profit, buy a property without understanding their needs. Surabhi Arora, Associate Director, Research at Colliers India, says, "Property transactions take time. Do not equate real estate with the stock market in terms of exiting."

1. APPROVAL AND LICENCES: Once you zero in on the property, check the builder's paperwork ranging from commencement certificate for work, environmental clearance and approved building plans. Also ask for the status of the land title and see if the builder has bought the land or has just development rights for it. Here is a list of documents you should check. 

(a). Title Deed: Check whether the builder has a right over the property. While buying a plot, see the title deed of the land to confirm if the builder has the full right to it. You can also take help from a lawyer to get the deed examined. Divakar Vijayasarathy, Co-founder, MeetUrPro.com, says, "A mere NOC (no-objection certificate) from the panchayat or the local body does not constitute approval by the authority." 
(b). Release Certificate: If you are buying a property in resale, remember that it may have been pledged to get a bank loan. In such a case, you will have to get a release certificate from the bank, which will prove that the loan on the land has been repaid. Check Encumbrance Certificate: It is also important to verify that the land is free from all legal dues. 
(c). Verify land use: Verify the land-use zone as per the city master plan for the plot. You can get the plan from the local body office in your respective city.
(d). Approvals by Local Body: Make sure that the entire layout has been approved by the development corporation and the local body of the city. 
(e). Property Tax Receipts: If you are buying a property in resale, ask for previous property tax receipts from the seller along with other bills. This way you can ensure there are no pending bills.
2. LIST OF BANKS FINANCING THE PROJECT: With real estate companies sitting on unsold inventory and not having enough cash to complete their projects, banks have become vary of financing them. There are many builders which do not get bank loans at all. So, once you finalise the property and confirm that all approvals are in place, find out banks which are ready to fund the project and go with the one offering you loan at the lowest rate.
3. CALCULATE THE TOTAL COST: Do not go by what the broker tells you. Many times brokers just mention the basic cost and not other factors such as internal/external development fees, preferential location charges, parking/club/statutory charges, and service tax, which escalate the total cost. Ask for the final cost of the property.
4. VERIFY THE BUILDER: The piece of land in question may be under litigation. Hence, it is recommended that you do an extensive verification of the builder. You could verify its past or current projects or even post queries on the various online real estate forums. Check http://www.flatgradings.com for builder reviews.
5. BUY VS RENT: Many people buy a property thinking they will use rent to pay EMIs. Experts say it is a wrong approach. Surabhi says, "Do not over-leverage in hope that rental income will pay for the EMI. The rental yield on residential properties is generally only 2-3 per cent." Moreover, the property may remain vacant for months before you can find a tenant.
6. THE RIGHT PLAN: There are various payment options available in the market such as down-payment plan, flexi-payment plan, construction-linked plan and possession-linked plan. Experts say one must choose carefully, as generally there is a cost for every convenience. For example, in subvention schemes, the price is at least 10 per cent higher than what is charged under regular schemes. Customers must also understand that any late payment or default on the part of the builder in such schemes will impact their credit history. Then, there are guaranteed rental schemes under which the developer either pays you rent for a fixed period during construction or for a certain period after possession. In the first scheme, the buyer gets regular payments from the developer during the construction of the house, which helps him offset a part of EMI or rent costs. In the latter scheme, generally for properties which are outside city limits, the developer offers rental income after possession. But the fine print is that there is no guarantee.
7. SIZE OF THE APARTMENT: Builders generally mention super built-up area in brochures. This includes common areas such as staircase, lobby, etc. The carpet area of the flat could actually be 30 per cent less than the super built-up area. For example, a two-BHK 1,000 square feet flat could actually be just 700-750 square feet. It is advisable to always go by the carpet area, the area enclosed within walls. Divakar says, " If you are looking to buy a plot for living at a later stage, it is advisable to first understand your requirement. Ensure that you check how much land (built-uparea) you will need to build your dream home. Topography and soil are the other vital factors."
8. CHECK THE INFRASTRUCTURE PLANS: Metro connectivity or any other big infrastructure development in future linked to the location of the property you intend to purchase can boost the return on investment tremendously. Also, ensure that the property is not close to any polluting industry.
9. CHECK THE Property: The layout in the brochure could be different from the reality. So, do a thorough site visit before booking the property. Interact with people in the neighbourhood as they may know about any illegal occupation or other legal disputes related to the property. Check http://www.flatgradings.com for Apartment reviews.
10. REGISTER YOUR PLOT: After selecting the property, you have to register it with the authority concerned for you to become its lawful owner. Surabhi says, "Through registration of sale deed, a person is able to acquire the rights of the property from the date of the execution of the deed."Last, but not the least, do some research about the developer's record in terms of total square feet developed, market feedback and project delays. Also, check the quality of its previous projects. Divakar says, "Be sure to search for any contingencies which may hinder the development of the property. For this, you can probably refer to or participate in various online real estate forums.

Please share your experiences living in an apartment on our platform http://www.flatgradings.com/write-review-form and help others make an informed decision before moving into new apartment !

Content Source: businesstoday

5 Tips for Designing Small Spaces In Apartment


Home is a place of Zen, be it small or big. But, decorating a small room poses unique challenges for every designer. Please use the tips provided below to make the best of what is available. For more understanding pictures have been provided in each point to elaborate.
1. Small Furnitures - A living room isn't always about life size sofas and tables. Pick out furniture smaller in size and antique in its look. It not only adds more space to the house but always provides a richer look. Also Love Seats are a great alternative to huge sofas. When it comes to positioning try to keep the love seats towards the edges of the walls with no windows and place the chairs around a small tea table. Pick up a tea table which is can be used not only as a table but also to store other stuff like newspapers, preferably a closed one to have a neat finish.
FlatGradings - Furnitures
Clockwise: Antique brown chair, blue chair, a red one and finally a simple love seat.
2. Bedroom - Firstly see how the room is positioned to find which places can be covered with decoration and where the bed needs to be placed. Secondly try to utilise all the nook and corners to completely. Also use one simple lamp at either one of the corners. Use floating shelves to increase the bedroom square footage. Paint a bold colour to make the room look bright and cheerful. When it comes to the bed try to make it multi functional where additional space can be acquired by backrest storage or under the bed storage rather than having separate racks. For kids try using a bed bunk alternative saves a lot of space, also a built in table along with the cupboards will work.
FlatGradings - Bedroom
A simple lamp above the bed utilised as a book shelf as well, with subtle and calm paintings.
FlatGradings - Bedroom
A kid’s room with an inbuilt study along with the cupboard in a dark colour shade of purple and black with wooden flooring.
FlatGradings - Bedroom
A double bunker bed which slides out for small rooms with limited space.
3. Kitchen - An area where families are most often gathered to talk and cook needs to have sufficient space. Try to combine the walkway, dinning and the kitchen together. The division between the dining room and kitchen can be added with a slab to utilise for dinning. A built in banquette also is an added advantage for more space. A smaller house can have the kitchen and living room shared with a mesh separating the two. If more storage space is required try to use built in storages in walls by adding shelves.
FlatGradings - Kitchen
Clockwise: A kitchen with one slab for both the purpose of dining table and a separating from the living room, a built in banquette and finally a kitchen with the walkway, kitchen and dinning combined.
FlatGradings - Kitchen
Mesh separating the living room and the kitchen.
4. Small Bathrooms - A bold and bright coloured geometric design. Try using just one face mirror and design the cupboards and shelves with mirrors which can provide a reflection and make it look bigger and brighter. Smaller sinks are more efficient, in some cases the sinks has been kept outside the entrance of the bathroom. A lot of Gray shades add a more soothing effect. For a nostalgic look try white and black combination. If the room has high raised rooftops then try adding windows towards the top to add more light and make it seem more airy. Furthermore the shower and bathtub can be combined together.

On the left: A bathroom with combined shower, bathtub, a small mirror and a simple sink. On the right: A geometric bright coloured bathroom with a mirror enclosing a shelf.
FlatGradings - Bathrooms

5. Balconies - Lastly if there is a balcony attached with the kitchen, bedroom or the living room you can always extend the room for additional space. A balcony with glass walls, huge windows makes the room look wider and larger. It could also be reconstructed to be used as a study area or it could be made into a work from home area. If plants are on your mind, yes of course you can add more vibe to the room by adding the right type of plants and using light vibrant colour flowers, chairs and small tables to sum it up.
FlatGradings - Balconies
Clockwise: A balcony attached with kitchen modified with a dining table, an extended room space from the balcony, a work from home area, a balcony with tables and plants and finally a study table modified out of a balcony.

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