The do's and don'ts while investing in real estate

Investing in real estate can be an extemely tricky proposal. In many cases individuals have a tendency to put in all their investments, in addition to take loan to buy a property. This being the situation, one needs to practice compelling alert at all phases of the buy to guarantee that the money one sinks into real estate does not go to waste.

Financial Plan 

Before taking a jump and purchasing the property you have your eyes on, it is vital to get your finance in place. Set yourself a budget and make an effort not to stray far from it. Keep in mind not to burn through cash that you can't bear to spend in any case. You ought to guarantee that the EMI going out of your pocket is not more than 40% of your month to month salary.

Investigate

Since you have gotten your finances in place, it is critical for you to get your work done. A percentage of the fundamental criteria one ought to remember are: 

• Locality

• Access 

• Existing and proposed infrastucture ventures 

• Integration 

• Vicinity of social infastucture 

• Security

It is best not to put resources into far flung regions which need even the fundamental comforts, for example, streets, water supply and waste framework. Don't get influenced by guarantees of up and coming infrastructural ventures and contribute your money. 

Checking the qualifications of the developer 

The real estate is littered with developers who are upstarts and are problematic. On the off chance that you go over an offer that is unrealistic from a little time developer, it is best not to channel your well deserved money into that venture. The most ideal approach to checking the reliability of manufacturers is to take a gander at their past undertakings. This will issue you an agreeable thought on the off chance that you can believe him with your money.

Legal documents

Title deeds are the key to any property transaction. If the seller does not have a clear title deed, then do not purchase the property

• Absence of a clear and marketable title deed is a deal breaker as it will lead to legal hassles in the future

• Insist on seeing the original title deed and have it verified by your attorney before buying the property

• Ensure that all clearances related to the property are in place before you acquire the property

• If you are looking to purchase an under-construction property, get the builder to handover the allotment letter and the development agreement

• The allotment letter has details such as the price of the property, floor plan, delivery date of the project and details of the liability incurred by the builder if there is a delay in delivering the project

• The development agreement lists out the terms and conditions under which the landowner has allowed the builder to use his property

• Ensure that all the taxes related to the property you are about to purchase have been cleared before you actually buy the asset

• Whenever in doubt, it is always advisable to take expert assistance.

Delay in delivery

When you decide to purchase an under-construction property, chances are that the project may be delayed. A delay of 6 months is acceptable but anything that goes beyond a year or more is bad news for you. Picking projects which are in the pre-launch stage are considered to be very risky. To mitigate such risks, check the delivery track record of the developer and look out for projects which are in the under-construction or ready to occupy stage.