Buying real estate is a popular kind of investment as it provides high future returns. But buyers need to be very cautious when investing in real estate as a bad investment could mean a significant loss in terms of money. In order to avoid such a situation, it is always better to prepare a checklist about the kind of property you would like to invest in & choose a property option that meets the most number of criteria on the checklist.
- Location The location of property is an important thing to consider before buying. Is it located close to schools, markets, hospitals, etc? Consider the average time taken to reach all these places from the property? If the distance is too much, it would be a smart idea to look for other alternatives.
- Accessibility/Connectivity Is the property accessible? Is it well connected to other important locations across the city? This is important because you or your spouse would need to travel to your office/shop on a daily basis; the kids would have to go to school/college, etc. for all this proper connectivity is a must.
- Neighbourhood Is the property you are considering to buy located in a safe neighbourhood? This is important to ensure your personal safety and that of your family.
- Legal Regulations Does the property adhere to the legal regulations outlined by the concerned authorities? Was it built as per the building code? Is the title deed legal? Have all the previous dues e.g. property tax, etc. been paid.
- Condition Of The Property If you are buying a house, be sure to do a proper tour of the property to analyze it current condition. Check for leakage in the plumbing system, malfunctioning in the electrical system, cracks in the walls, infestation, rot in the wooden hardware, etc.
- Budget Is the price being quoted for the property within your budget? Is there scope for negotiations? Outlining the budget is an important step that should be undertaken before you actually start looking for viable properties. This narrows down the possibilities and makes your search more effective and less time consuming.
These are some of the essential considerations that should be kept in mind while buying new real estate. By preparing this checklist, you can ensure that you do not end up investing in property which does not meet your requirements efficiently.