Due diligence a must before buying a high-end property
Premium properties should have a great location and have resale potential
The decision t o buy a house is always critical. Irrespective of the cost of the house, some core fundamentals have to be considered before a final decision is taken. Before buying a unit, buyers should do their due diligence while identifying, negotiating and purchasing a house. While buyers often take into consideration aspects like the purpose of buying residential real estate, the price, location, connectivity, and the infrastructure, there are many parameters that are ignored while buying a high-end unit in India. Some important factors that need to be borne in mind are:
Purpose of purchase: The buyer of a high-end property has to decide whether the purpose of purchase is for self-use or investment purpose. This is the most critical part that helps decide which property, in what location, and at what price does one wish to purchase.
Real value of property: The prospective buyer must determine whether the price of a property is commensurate with the existing market value.
Resale value: Whether for self-use or investment purpose, the property should have the potential of resale in mid to long term.
Project approvals: The buyer should receive a list of approvals that the builder needs to obtain, including building plans and approvals from various regulatory authorities.
Specifications: Frequent visits to the site is recommended so that buyers can assess the quality of fittings and fixtures. Such visits will ensure that the promised specifications, as shown in the sample flats, are adhered to.
Legal aspects of purchasing property: Buying a property in India involves a great amount of paperwork and diligence, and the lawyers should be well-equipped to handle the entire process. Lawyers should conduct due diligence to verify the ownership of the title over the property, or any encumbrances.
Buyer ag reements: One must pay great attention to the buyer agreement as it holds all the clauses, terms and conditions and legal implications, for all parties involved. During the process of buying and negotiating, a buyer should be aware of all the clauses which protect the rights, interest charges, penalty, default charges for a buyer and clauses of refund of payments, in case the development is not completed or is scrapped.