We have listed down 4 things you should go about thinking if you intend to invest in real estate anytime soon.
1. First things first, decide on a budget. Do you intend to take a housing loan or invest your savings into it? While ideally, it would be great to keep ± 2 to 5% depending on the city you live in, it is always best to have a budget and then start looking for a place than vice versa. This will help you shortlist builders and real estate agents and save time.
2. What kind of property and where?
Have you decided if you want a flat, a row house or a villa? Or would you like to explore all options available within your budget? And where do you want it? Are you going to choose a rough territory and look for property surrounding it or a specific locality with a certain kind of housing- large societies, small one-building apartment, independent houses with common fencing?
3. So, are you going to contact the builder directly or go through a broker? Each one has its own pros and cons. While going to a builder directly would be cheaper and leave more scope for discounts, it will mean you have to hunt down vacant flats/new constructions in localities you are looking at and that will consume a lot of time. And the broker will make it easy for you to find places but you cannot overlook his commission, even if you manage to get a decent discount from the builder.
4. How to strike a good deal?
Negotiation is your mantra. The builders or real estate brokers will never tell or hint that they are open to negotiation but you should always ask for a discount. You can avail 5% to 20% discounts depending on the city in consideration. Even a 5% discount can make quite a difference to your budget if you are looking to purchase a flat in a posh locality of Mumbai or Bangalore.
If the dealer is bent on not bargaining and you still like the flat, you can ask for extra at the same price- extra parking space, specific furnishing in kitchen etc. Generally, the builders always agree.
Take your family along when you go to visit the place. This makes an impression that you are a serious buyer and a family person. It increases your chances of getting a discount. Also, always carry a cheque book for immediate down payment. Remember, you are not the real estate agent’s only customer. If you find a place perfect for your family to grow in, book it then and there. There are others who are looking for the same who might reach after you but book it first.
Want to know more about how you can get best out a real estate deal? Read this.