Black is the new white: Secondary real estate transactions to end up straightforward

Black is the new white: Secondary real estate transactions to end up straightforward

Black is the new white. The act of putting unaccounted riches is generally predominant in land and the government’s most recent choice is relied upon to make things troublesome for developers. There can be an ascent in undertakings stalling out as developers may go moderate on development given the liquidity worry for them.

The quite anticipated trigger for making homes reasonable for end clients is here. The government’s choice to boycott Rs 500 and Rs 1,000 currency notes is relied upon to hit the real estate sector hardest. As a sector that is known for threat of it’s black money, real estate is presently prone to move towards enhanced straightforwardness.

The move will certainly push property costs, including land costs, down as investors won’t have the capacity to convey their real estate transactions and thereby constraining developers to offer at lower costs. Of the property markets, Delhi-National Capital Region is probably going to witness a hard arriving as the market is known for most noteworthy inclusion of cash component.

“Property markets will likely see around 30% correction in prices. Indeed, even developers who guarantee that they acknowledge just cheques will likewise be compelled to diminish costs given the economic situations around them. Aside from huge property markets, level II and III urban areas will be most noticeably influenced,” said Yashwant Dalal, president of the Estate Agents Association of India. “Land costs will likewise move descending as these deals used to see no less than 30% cash component.”

The act of putting unaccounted riches is broadly common in real estate and the government’s most recent choice is required to make things troublesome for developers. There can be an ascent in ventures stalling out as developers may go moderate on development given the liquidity worry for them.

What to look for when buying a house

What to look for when buying a house

Buying Tips

The first step towards buying a property starts from being able to identify the one that suits your needs and fits your budget. It is important to select the property depending on following criteria:

Parameter

Question to be asked

Location of the site

 

 

While choosing the location, you need to keep the following parameters in mind like proximity to the main roads, bus stops, railway lines, transportation services, civic amenities like educational institutions, park, police station, temples, community hall, hospitals, and auditorium within reach.
Affordability Does the location fit your budget?
Place of work How far is the office from the desired location?
Market place Where is the nearest market?
School Where is the nearest school?
Public transport Are buses/trains easily available from the location?
Builder Does the builder have a good reputation in the market?
Availability of water and electricity Is there a steady supply of both?
Residential/ commercial Commercial areas face traffic jams during working hours and level of noise is rather high
Hospital/ Medical services Are they available easily?
Society expenses Is the monthly outgo on the society and maintenance a strain on your budget?
Security Are the security systems in place, like a professional guard or electronic systems?
Parking If you own a vehicle, you will need space to park it
Type of ownership In some areas, property is available only on a power of attorney or “pugree” basis. Getting funding for such properties is a problem.
Self constructed property(SCP)  SCP is a situation where you buy a plot of land and construct a house there. All banks may not fund such projects.
Under construction property at an
early stage
Many banks may not prefer to fund such projects. But if the builder is well reputed then it should not be a problem.

In case of a ready / resale property, you need to bear the following additional points in mind while selecting a property

Parameter

Questions to be asked

Chain of title It is important to have all the proper registered documents from the proposed seller that declares his ownership. These documents are important for you to garner a loan from the bank.
Maintenance Check the internal as well as the external condition of the building
Water leakages A flat with water leakages should be strict no as it adversely impacts the overall condition of the building.
Condition of the flat Is the paint peeling off or concrete crumbling?
Neighbors Grumpy neighbors can make life very unpleasant.
Society transfer charges If they are too high then you need to factor that in your budget.

 

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