Still editing as my Purchasing is still in progress
This was my first experience in buying an apartment and I have experienced this statement "Experience is the mother of wisdom". If you see any better ideas, please do post your comments.
Finding the Right House
The first thing we need to realize is that everyone's need, taste, thinking , capacity to buy etc, is very different. So one person may like a house which you may not like and vice versa. So I have seen cases where people get together but fail to buy a plot together. But if it works go ahead, until you can do it together. if you like a good house, and your friends are not willing to, try to partner with people who are buying there, if possible. You can add an excel sheet to see what all needs it fulfills. Keep in mind, that any house will not fulfill all your needs. Once you start looking, you will understand.
One advantage when you are buying a house when its in its early stage, is you can choose a better flat in an apartment on the basis of its location and get a cheaper rate (mostly). The drawback of purchasing earlier is that there is a high risk whether the house will get complete or to make out the quality of construction.
There are also some resource problems such as water availability, which is present in most of the localities in Bangalore. Currently, if the builders say if Cauvery is not available, its a very common problem. Also people who get now, they are also not guaranteed to get it in a consistent way.
Don't measure the distance of the house from your office or school just by seeing the amount of kilometers, measure it using the time taken to reach it. Bangalore is sick with Traffic problems, one way issues etc.
Places where you can be a Victim
- The Agreement Papers are mostly a one sided one favoring the seller.They are not edited if you need some additional clauses that need to be added. This is because, if they make one change for you, he will need to make Changes for all of them.
- The Marketing team will tell you that there is a penalty Clause when the delivery of the apartment is delayed. Mostly,this clause is not available in the Agreement papers. Even if its present, he will not give you the money easily.
Myths
Do not buy from the landlord!
Mostly here in Bangalore, there are apartments where both the landlord and a builder get into a contract and build it. The landlord gets some of the Flats that are constructed in return for the land he has given. People say that its better to buy from Builder and its costly when you buy from Landlord. Yes, cost will be more as the landlord sells it later.
Loopholes
- Some of the banks advertise offers such as lower interest rate until a specific time. The end date is not the day on which you apply, but actually the date on which it gets sanctioned.
- When I went to a lawyer for a legal opinion, I was told that it was one sided and he told me to add additional clauses. This lawyer was one to whom I wen to, to get a legal opinion from my own personal Perspective. When you apply for home loan, you need to go to another lawyer approved by the bank. The lawyer to whom I went told me to negotiate and the builder didn't agree to any of them. Later other people told me, that the builders are reluctant to make alterations, and the builder also says, "If I change it for you, how will I face the arguments from other people to whom I have sold the property?". Going to this lawyer, I felt was a useless one. But still, its better to go and check the critical legal details to see if this property is in dispute and if you are going to go to apply loan in a private bank.
- The Marketing tricks. Ads contain, "ready to move in" , it means they could not sell it till now. "Few Flats remain", may mean that they are poviding you a list of few flats from their large list of unsold flats. what the builders do is, they do not provide a complete list of available flats. There are two reasons for it. The customers will hurry up. They can sell types of flat inside their layout which are difficult to sell.
Psychological things of Real Estate purchase
In this world of Real Estate, the Real Estate guys are the real experts in comparison to us, obviously as they earn their bread, butter and cheese. They will and need to make profit and will make it as much as it can and know the rates much better than us. We need to negotiate and always ask them to reduce the price as much as we can. So Assume in your costs, an item called cheating cost. We should have an attitude to take all the challenges as puzzles, saying, "let me face it", rather than saying, "what the heck!". Don't expect things to get completed super fast, just put your efforts with less expectations. This is to reduce stress. Also Unite with other people and then demand your rights.
Mistakes that I realized later
How Shopkeepers cheat
How Shopkeepers cheat
- When I purchased electrical Goods from a shop called Bangalore appliances in BVK Iyengar road, I got a better quote of Price from him. But Later he tricked me and sold me a Racold Steel pipe which was sold for 400 (labelled price of 450), but actual price was of 200 which I came to know later. Moral: Better be careful, don't accept, check and buy.
- I purchased Kurlon Mattresses from Floating Walls Furnishings, SH 35, Whitefield, Bengaluru. I did ask them if there were free items with the mattress. They confirmed that the free offer is closed. When the goods were delivered, it was written upon it that there are free items along with that good. Called the shopkeeper and asked them and later got 2 Kurlon pilows worth 550 each. Moral: See the goods and its rate in atleast two Shops
Other Tips
- We have good tools nowadays such as Google maps, which give you a good picture about the vicinity and may give you clues about critical problems such as nearness to sewage water, factory etc.
- If you don't have a vehicle buy a Daily pass for Volvo buses which can help you in a better manner
- Its easier to bargain if you have short listed at least 2 apartments so that you don't fear losing the flat
- Check if the builder has made any other constructions and the quality of it
- Look for complaints posted on the apartments, are they really big or tiny things?
- Request for the details of Sale Agreement drafts if possible. Only a few will give you.
- When I applied for loan at nationalized banks, they need you to a long form, you can go in advance and ask them what all to fill. There will be some sections you need not fill, when you have some of below certificates
- Get all the required certificates in advance such as Employers Certificate, Address proof, Salary certificate when you have finalized your house
- Always don't accept what all the marketing team tells you
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The Additional Costs that I incurred
- The Builder is always selfish as much as things allow.
- when the house is still in construction, the builder allows his carpenters to do the carpentry work. If you want the work to be done by yours you can do it after the house is handed over to you. They take 20% commission from them, which finally goes out of your pocket.
- They charge hefty amount for electricity if you do carpentry work, even if you do from their suggested carpenters.
- If you do pujas, they charge 2000 Rupees(as of year 2011) to clean it later
This Section is not complete yet, as I have not made all the purchases yet.
Apartment with Builders
- Any Alteration would be more costly, as its only the builder who you think can do it better. Remember, the builder buys all the things at a wholesale rate and earns profit on that as well.
- Stamp papers to make the sale agreement
- Banks Processing fees,Seeking legal opinion, Technical evaluation, Home loan Insurance (check whats the clause when two people apply for loan together)
- Carpentry, Grills if any, Utilities for Kitchen, Electrical Fittings, Mosquito nets, screens, ,New Furniture if any, Cable connection, Geysers, alterations (Tiles)etc, etc etc.!
How can the Real Estate People Get Better?
- One of the problems with the builders is that there is not one builder today who can make products out of good will, that they would be the most preferred seller. Current buying method of the customers is, may be this is the best I can get. Get better dear builder's and let customers run towards you!
- Do Take feedback from Customers as to what they liked and what they didn't. This would help you to make better products for your future Customers.
- Do Business in a cooperative manner, not just purely profit oriented, When customer's like your work, they will credit you with their own marketing
- Keep your Profit Margins Practical, When its Huge, Very less people would come, when its appropriate, at a certain point it will give you best in comparison to others
- Be quality oriented, the skill you will get help you deliver better products. There are invisible profits such as brand value which will get added
- See what all features you provided, the customer didn't like, you can cut cost by removing what Customer thinks silly.
- Tune your processes using feedback from Customers
