Investing in a property is a daunting task which requires careful considerations and making wise decisions. Nowadays, the real estate market enjoys a huge escalation with lots of choices, primarily in metropolitan cities. Chennai, being one of them, has plenty of options for investment in case of real estate. Where there are choices there will also be chances of duplicity. Many people get victimized for the mistakes they make on investing on the wrong properties. To give you all a better picture, here are the 8 mistakes to avoid completely while investing in Chennai properties:
1. Study the market and do some groundwork
Doing some basic research, asking for a suggestion from friends and colleagues and studying the market prior to investment will be advantageous. The market dynamics keeps swinging and hence we need to double check before investing on it. Also, check on the present real estate market trends and be updated so that you don’t get cheated. This process is called Comparative market analysis.
2. Scrutinize the builders thoroughly
Before investing your hard earned money on a property, it is highly important to analyze and inquire about the builders and their reputation you have shortlisted. While doing your research- look for their previous projects, their credibility among customers, and their post-moving in customer care experience and primarily, do ensure that the property you invest in is approved by authorities and check whether it has got all approvals needed for a property registration and selling.
3. Do not depend wholly on Agent
It is okay if you don’t know the nitty- gritties of real estate market but completely agreeing to what a real estate agent tells you is something which is not advisable. Remember that there may be the risk that he tells you only the right points and makes you see what the seller visualizes. So, in this era of internet, it is recommended to do some research so that you are not completely reliant on your real estate agent.
4. Not checking on the documents
This is the most oft repeated mistake prevalent in the real estate market. Documents such as Occupation Certificate, No objection certificate (NOC), Land use certificates, clearances from the Environment Department and other authorities are important to check the quality and credibility of the builders and the properties. Investing in a legitimately right project is the best way and if you forget to check on the documents or if some documents are reported to be missing by builders, then it is better to opt out of that property.
5. Expecting a quick return
It is common for people to expect a higher return value in a short term. When builders advertise that their properties guarantee quick returns, do not blindly fall for it. Investment in a property is pretty much the same as other investments, which takes time to settle and after a considerable amount of time, you will see the graph increasing. So do not expect for swift results as it is only an illusion.
6. Failure to look on long term profits
Many people fail to see the long term profits and they are concerned about getting ‘on the spot’ results. A property, at present, can seem to be in high demand and may be generating higher rental values than other places but what if after 6 or 7 years, the area in which you own a property sees a sudden downfall? Yes, it will leave you stumbled. So it is advised to think about the long term benefits and scenario of the property before laying hands on it.
7. Visuals can be deceptive
The main aim of some builders is to attract investors. For this purpose they use engaging visuals, photos, contents and what not! But remember that visuals can be deceptive and misleading. Do not come to a conclusion by seeing their ads, sample flat and marketing tricks. Before investing on a property, it is good if you decide yourself on what you expect out of a particular property. Or better yet! Ask if they have a 3D model to show you!
8. Not Documenting everything
If something is not documented properly/legally, then it is invalid. This is the scenario in real estate. Relying on just verbal communications is a mistake for which you may end paying for later. If you do not want to end up being cheated, ensure that you have the proof of every conversation or promise, documented in paper. Only with the help of legal documents, can you carry on the legitimate approach if any problem arises. And be careful when they ask you to sign in any documents and do not forget to read it completely before duly signing it.
Thus, keeping in mind all these 8 points would definitely guide you in choosing the right property in Chennai for you to invest. For the finest homes in Chennai call us at 044-40000302 or visit us at www.urbantree.in and we shall arrange a site visit for you! 🙂