There’s a lot of excitement surrounding new housing project launches, with developers pouring substantial amounts into extravagant parties, multimedia campaigns, beautifully staged show flats, and flashy sales offices. Amid all the noise, it’s essential to pause and make a thoughtful decision—one you’ll be happy with in the future.
Here are some key factors to consider before choosing to invest in an apartment:
Consider the Location
There’s a wealth of information available on this topic. One crucial piece of advice is to visit the site in person. Spend time in the area to evaluate nearby developments and proximity to social infrastructure such as malls, hospitals, and more. Don’t forget to check the commuting times to your workplace, your spouse’s workplace, and your children’s school.
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Check the Price
Always verify the actual price of your chosen apartment rather than relying solely on the base selling price (BSP). Make sure to request a comprehensive cost sheet that includes all expenses related to the purchase, as you have the right to receive this information under RERA. After reviewing all the costs, remember to factor in the applicable GST for each item.
“If you’re like many buyers who will be financing the apartment, don’t forget to add the cost of pre-EMI interest during the construction phase. Once you’ve tallied up all these expenses, closely evaluate the total cost. Ask yourself if it’s something you can afford, even if the apartment’s value doesn’t increase while it’s being built. Be wary of the figures presented in the developer’s marketing materials, especially from newer or smaller developers, as hefty commissions paid to middlemen can distort the true cost,” suggests Amit Raj Jain, Founder, Stride Homebuild and Oram Colonizers.
Avoid EOI Investing
A concerning trend in the market is EOI (Expression of Interest) investing, where buyers commit to apartments during pre-launch phases—before developers have secured all necessary approvals and RERA registration is completed. Remember, at this stage, any information shared has not been vetted by the RERA panel. Regardless of enticing offers, it’s best to steer clear of such deals. If you fall victim to a scam here, it’s most likely that RERA won’t be able to assist you.
Evaluate Developer Track Record
Be cautious about flashy brochures and promotional materials.
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