When you are looking to buy property, you are likely to be flooded by offers from many builders and real estate agents. Some of the offers may seem too tempting to resist. Real estate agents often paint a rosy picture in order to lure investors to purchase properties that carry higher commissions for the intermediaries.
You need to be very careful while deciding on the real estate company and the project to invest in. It is easy to fall into a debt trap if you invest borrowed capital to purchase property that fails to give you substantial returns. The decision to invest in property needs to be an informed one and should be taken after weighing all the pros and cons.
The following are some mistakes to be avoided as a prospective property buyer:
Financial Credibility and Track Record of The Builder
Sometimes, prospective customers are lured by tall claims made by builders. They end up rushing into the deal without bothering to check the track history of the builder. Before you take a decision regarding which real estate company to invest with, you need to do your research regarding the financial credibility and reputation of the company. It is advisable to talk to their existing customers and take their opinion before you proceed. Online reviews can also be very helpful.
Positive Cash Flow From the Property
First-time investors can easily play into the hands of agents and companies that promise unrealistic returns from their investment. It is important to be realistic and find out the actual returns that similar properties are currently yielding. You need to also find out about infrastructural projects that are coming up in the area.
Location of the property
An investor needs to choose a good locality to invest in. He should also consider the cost of the property and the rent it is likely to generate in future. If the rent is not adequate to cover the monthly EMIs on the mortgage, it does not make any sense to invest in the property.
A lot of money is paid out by way of commission in the purchase and sale of property. The real estate agent is likely to lure you into buying, by exaggerating some of the features of the property. It is important that you verify all the information before you take a decision. You need to also check out the property prices in the locality in order to ensure that you do not end up paying a higher price to cover the commission and other payouts related to the sale.
Real estate is an excellent investment avenue but you need to do your research and carefully weigh the various options before you take a decision.
If you are looking at investing in Bangalore, Sobha Dream Acres will be worth considering. Sobha Developers is a reputed company with good credit rating. They have been in the industry for over two decades. Sobha Dream Acres is coming up in Balagere which is a fast-developing area and is part of Bangalore’s Golden Quadrilateral. Another property worth looking at is Bren Champions Square located at Sarjapur road.
Make the entire process of buying a home, a hassle-free one. With home loans by Bajaj Housing Finance Limited, you get in-person assistance with respect to site visits, documentation and finding the right home.