Safety Tips For First Time Home Buyers

By Author: Dynamix Group
Total Articles: 23
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How often have you passed by a piece of advertising for a project or property that is ludicrous? Not because of how unaffordable it is, but quite the opposite. Hoardings across the city today advertise down payments that cost less than the average couch, fully furnished flats that can supposedly be purchased at the drop of a hat, and endless views that would cost a pretty penny all at your doorstep.

This is a stepping stone to the ‘dark side of marketing’ (a real thing!), where you haven’t been fully manipulated yet, you aren’t technically being lied to, and you convince yourself against all prevailing experience that this is an achievable promise. It isn’t.

If today you were verbally told that you could secure a home for less than 30 lakhs, you would not be convinced, because it is human nature to believe that if something is ‘too good to be true’ it’s because it usually is. However, take that same information, aesthetically designed, splashed on a hoarding, and protected by endless asterisks- your brain starts to play tricks on you- suddenly it becomes a lot more believable.

So let’s ...
... look at the inherent safety tips, not the ‘home buying tips’ but those which can protect you, your family, and your hard-earned money. The safety tips for first (and seasoned) home buyers.

Choosing The Right Developer:-
There is no shortage of developers in the city which can be both a boon and a curse. A highly sought-after business, anybody with a plot of land and who want to cash in on it is capable of developing their piece of land. So with such a selection of developers available to you, why should that be a problem? Because it is easy to fall into business with a one-time developer (somebody looking to develop just their single plot of land) who may not be as well-versed or experienced in the industry. Choosing renowned developers in Mumbai can be beneficial for first-time buyers as they always instil a lot more faith in the client as they can be certain their money is being invested with a veteran from the industry.

As a first time buyer, dipping your toe in the real estate pool, it is always a better option to play it safer with a known developer with a delivery track record than take a risk.

Understand The Jargon:-
It’s a fair assumption to make that the average person is not going to understand the nuanced jargon associated with an industry they are not involved in. If the first time buyer in question is unclear on the details of terminology, it is very easy to take terms at face value. For example, if a client is in the market for a 2BHK flat in Dahisar East, they would rightly be aware of the areas advertised in the locality. If the flat is advertised as approximately 700sq.ft. first time buyers can sometimes overlook a very telling clarification; is that 700sq.ft. of usable carpet area? How much of that 700sq.ft. is occupied by internal walls?

We often advise first time buyers to ask what isn’t rather than what is.

Be Cautious:-
Of course this sounds a lot more ominous than it is, but it is always important to exercise caution. Consider looking for a luxurious apartment in Goregaon, you would have a broad understanding of the costs associated with any project in the area worth the ‘luxury’ tag. That is when developers employ the use of marketing gimmicks and schemes that are almost never what they seem. There are definitely times when a developer may offer a discount, or a benefit to booking at a certain time, such as Women’s Day offers, or deals during Dhanteras and Diwali, however, it is prudent to recognise that offers advertised outside of ‘season time’ often come with conditions.

Scepticism can save you a lot!

Have Foundational Knowledge About RERA:-
RERA is The Real Estate (Regulation and Development) Act, 2016, which is an act that is aimed at protecting the interests of buyers in the real estate sector. The act effectively regulates previously pro-builder issues to offer the client more transparency to make informed decisions. When a project is registered under RERA (which is a mandate by law), the developer cannot delay the project. They cannot charge for excess area that is not exclusively usable by the client (such as common areas which was standard practice before the RERA was enforced). Builders must have all the clearances in place before they are given the go ahead to start selling- so nothing is left up to chance anymore. Finally, no false promotions. If the builder is selling 2 & 3BHK flats in Malad East, or sea facing 2BHK apartments in Goa you can be certain that every last piece of promotion presents what is available at the end, of course, watch out for some level of disclaimer!

Insure Your Home Loan:-
Insurance is a safety net, and one that we as a cynical society do observe as a necessity to a secure future. Nobody looks to tempt a negative event from approaching but in an event of misfortune, having home loan insurance protects the family of the policyholder from the burden of the loan repayment and loss of investment. In such an instance of two co-owners of the property who have a joint loan (as mentioned in our previous blog about the benefits of women owning property in India) a single home loan insurance policy will cover all the borrowers of that joint loan further lowering the burden on one sole individual.