A home is more than just a piece of property; in real terms, it resembles pride, security, and stability. The Indian real estate market is booming, which makes it a perfect investment opportunity. With this, more and more people are investing in residential property rather than living in rented houses.

As per the Economic Survey 2017-18, about 28% of India’s city dwellers live in a rented house, which is a steep decline from the scenario in 1961 when a majority of them (54%) used to live in a rented house instead of owning one.
This increase in numbers is mostly due to rapid improvement in infrastructure in the suburbs and an increase in competition among property developers.
When I decided to purchase my first home, it wasn’t very easy to shortlist a real estate project owing to multiple builders and projects. Shortlisting and comparing real estate projects can be a daunting task.
This article will help you in easing this task. I have outlined essential parameters that can help in choosing your ‘home sweet home’. I hope by the end of this article you are ready with your checklist.

10 Parameters to Consider While Buying a Home

RERA Registration

To bring transparency in the home building process, the government brought in RERA (Real Estate Regulatory Authority) to address concerns of homebuyers, stakeholders, brokers, and builders of the real estate industry.
It makes sure that every builder informs home buyers of the entire progress of the construction that abide by all rules outlined by RERA. Make sure you look for RERA approved projects and choose the best one.
Tip: I would recommend you to verify the RERA registration status of the desired project by directly going to the official website. Click here!

Budget

Start by evaluating the total cost of the project based on rate/sqft. You, as a buyer, should verify the basic cost and final cost before having a one-to-one conversation to the builder. It will give you a brief idea about how much loan you need to take, including the EMIs. Also, weigh the project in future expenses for at least three years and then come to a decision.
Don’t forget to include school fees, monthly household expenses, insurance premiums, job security, etc. to decide if you can afford the period of the loan and the EMI.
Tip: For under-construction projects, builders mostly have three years of lock-in from the date of the agreement. Herein, you cannot sell your home and have to continue paying EMIs to the bank.

Location

When I decided to splurge my life’s hard-earned money on a new house, I had many personal preferences and decided to choose a property that is in the center of the city considering the proximity of my workplace and child’s school.
Working couples prefer living near their workplace and other important landmarks like hospitals, railway stations, metro stations, etc. It’s the same with single working people who take their commuting time into account before choosing a property.
Also, check for other factors like liveability of the area, greenery, water supply, play area, future expansion and likewise.
Tip: Location is a crucial criterion that should be given more weight. Anyway, your workplace may change in the future, consider more on easy access to public transportation, distance from school, hospital, city center and such.

Builder Reputation

Perform a thorough research on the background of the builder like the number of successfully completed projects, how much projects delivered on time, any pending litigations against the builder in the public domain, etc. Other than this, find answers for the following:

• Are there any land disputes or any problems faced in the title of the projects?
• Is there transparency in the furnishing details related to property documents for verification?
• What are other people or builders say?
• Any construction flaws that were highlighted in the public domain?

By doing this, you can decide whether to trust the person or not. Go to internal community groups and understand the real issues of the previous projects (if there are any).
Tip: Find someone who has already invested in real estate or is a part of an internal community group to highlight the real problems faced by buyers who have already invested in the builder’s project.

Appreciation

Appreciation is crucial for real estate investment because it results in a higher rate of return if you decide to sell it in the future or avail of better rental income. To get suitable investments later, you need to know the overall appreciation of the area and the project you wish to invest in.
Tip: Track down the appreciation trend for five years for the project you are looking to invest in and the projects in the surrounding area. A thorough probe will help you to know if it matches your appreciation level or not.

Amenities

Prepare a list of all the amenities you wish to have in your dream home. Don’t compromise on the quality of the amenity construction. Your life should be kept at the priority.
I was lucky enough to get the perfect house for my family of three with a toddler swimming pool, kids play area, jogging track, yoga area, garden, and an amazing tennis, badminton and basketball ground. Amenities differ according to the type of family. If you are staying with your parents, then your needs will change eventually.
While choosing, I was adamant about having a well-planned parking space with ample space for two and four-wheelers.
Tip: Carefully refer to the amenities information. Anyway, an outdoor badminton court and a huge swimming pool would be useless as it cannot be used in all weather conditions. Instead, look for temperature-controlled indoor pools.
Not all builders deliver all promised set of amenities at the time of possession. It is advisable to check the compensation clause in the sale agreement.

Master and Floor plans

Take time to analyze the size of the project, floor count, number of towers, building architecture to see if it suits your liking. If you are interested in luxurious 2BHK or 3BHK, 4BHK duplexes, villas, penthouse or bungalows, then check if the infrastructure has the unit configuration you wish to have in your project.
Kindly check whether the floor plans have a sufficient number of rooms, bathrooms, balconies, study rooms, etc. Also, consider checking what the percentage of super built-up area is given as the carpet area. Higher the percentage, the better it is.
Tip: Say no to the small project (like 1-2 acres), since such projects will be covered with construction on all four sides, making it noisy and less spacious for any basic amenities.

Authorized banks and payment schemes

You should also consider the list of banks who have partnered with the project for home loans. Public Sector Banks like SBI (State Bank of India) would be a great choice as they carry rigorous due to the diligence of a project as compared to private banks even before approving a project for a home loan.
Do check the set of payment schemes offered by the builder. It can be:
Construction linked plan- Payment should be made in phases by the buyer depending on the construction of the building.
Subvention schemes- It is a tripartite agreement that includes the buyer, builder, and banker. Here, the buyer pays some cash to book the project, and the builder bears the interest cost until the subvention period viz, 2-3 years.
The buyer paying EMI after the subvention period ends and any delay in the payment process can be troublesome for the buyer. If the buyer fails to pay or delays the payment, then you may have to pay both the EMI and rent after the subvention period ends.
Tip: When opting for subvention schemes, carefully check the period listed in the agreement with the builder. Refrain from paying any amount until the agreement is clarified.
Calculate the amount you will pay as rent when the subvention period ends till the date of final possession. Also, assume a delay of at least one year.

Completion date

Never fall for the project completion dates given at the sales pitch. If possible, ask for a sale agreement in writing before investing. Also, consider the grace period provided by the builder in the deal for project completion.
Tip: Do verify if the completion date given in the sale agreement matches the date registered with the state RERA regulator. Financial planning should be done assuming a delay of 1 year.

Cancellation policy

Kindly note the penalty amount, mode of payment, the days when you will get your booking amount back and the interest at which you will be compensated. All these things will be taken into account if you have to cancel the booking due to financial reasons, emergency, change of mind, etc.
There may be several reasons to cancel a deal, be wise and read the cancellation policies twice.
Tip: Have a mandatory conversation with the builder about the terms and conditions of the cancellation policy. Be keen on listening to what your builder says and understand all the cancellation clauses included in the sale agreement.
Lastly…
I hope this article has helped you to understand the nuances of real estate investments and have made the entire process sound less confusing and intimidating.

Author Bio:

Akriti Shah has been associated with Darshanam Group as a business development executive for the past ten years. She has thoroughly mapped residential and commercial properties across Gujarat and loves spreading her knowledge through blogs. If not writing, then She is probably busy gardening or reading a book at her luxurious apartment at Darshanam.