Industry Insider Advise for buying apartments

If you are buying directly from the developer 

1. Choose the developer wisely: The background and history of the developer or the development company is paramount. Since your investment is coming from hard earned savings after paying tax and expenses, likewise it follows that the developer should also have earned his fair reputation the hard way by delivering projects on time. Every 15 years we see a new set of developers in most cities. New developers should ideally be offshoots of a respectable business group or industry professionals.  Ask the developer about: 
   

   1. Number of years in the business

   2. Number of past projects completed

   3. Location of past projects completed  – If the developer is away from his main location / headquarters location, chances are that the project might be subpar (Mumbai developer developing in Bangalore, for example)
      

2. Do due diligence on the developer and the project: 
   

   1. Lookup the project on the state’s RERA website. Look for what issues buyers have complained about. 

   2. Google search the developer for the following. If he has court cases against him, large amounts of debt, or if his credit rating is low. Those are signs to avoid him as the developer can halt construction on the project 

      1. Developer name debt 

      2. Developer name court case 

      3. Developer name bankrupt  

   3. Lookup reviews of the developer, his past projects, and the project you are considering on Mouthshut.com, Google, Facebook, Reddit and YouTube. These forums tend to have complaints about the 

      1. Quality of construction: Water leakages, broken items, repeated repair 

      2. Quality of utilities: It would be surprising to hear, but multiple apartment buildings with multi-million dollar listings have 

         1. Shortage of water 

         2. Water sanitation issues (poorly recycled water) 

         3. Gas connection not working 

         4. Huge markups on water and gas bills 

         5. Frequent electricity blackouts 

      3. Quality of society: High maintenance costs and mismanagement by the society office 

   4. Visit the society and ask the people living there about what problems they face in terms of 

      1. Quality of construction 

      2. Utilities 

      3. Neighborhood: broken roads, extremely noisy 

      4. Society management
         

3. Do not fall for the price: Just because there is a competing project with lower prices in the area doesn’t mean it is a better investment. On the contrary, in real estate, it is a bad investment, almost a trap. Non-reputed developers tend to price their projects lower as compared to the reputed ones. 
   

4. DO NOT go by advertisements: huge spend on advertisements doesn’t mean that the development company is creditable. 
   

5. Check online for all possible options: but AVOID showing interest or buying property online or through phone calls: don’t fall prey to Brokers. Buying property from some random telecaller whom you have never met in your life is keen to help you make money! They tend to almost brainwash you into taking a decision right away and especially the project that they are promoting. The project that they have for you is the one which is sweetest for them in terms of their commissions, not for you! 
   

6. Sub-urban / rural projects: Must visit the project site. If you think it is too far for you to visit now at the time of buying the property, then one must reconsider the decision before you invest. If you find it inconvenient today, how will you use the property later. Even if you are considering it as a secondary investment option, one ought to be fully conversant with the locality and the area for monetizing your asset either by renting it or for selling it later. Real estate investments need constant monitoring, you cannot leave them to themselves. 

In light of all these issues, we recommend buying a pre-owned or resale apartment which has been fully constructed for at least 3 – 5 years. This ensures that

1. Construction defects have come to light

2. The teething issues of utilities and society functioning have been worked on

3. Neighborhood retail, educational and medical systems have been setup 

50% Brokerage: If you wish to buy in any new construction project, we can sign up with the developer as a broker, and share 50% of the brokerage with you.

If you are considering buying an apartment through second sale or pre-owned in a new project

1. Price: Every property up for resale has its unique set of issues. The discount from the prevailing market price should be considerable for you to get into dealing with unknown people. 
   

2. Through Brokers: Always beneficial to have a broker for negotiation the price and other issues. Also, there is no law that brokerage is to be some percentage of the deal. Market norms do not mean that you have to follow the herd. 
   

3. Buying from owner directly: is the best option