Since the past few years, Kolkata
and its surroundings are witnessing a boom in real estate development. The
development of peripheral regions of Kolkata such as Howrah, New Town and Garia
has provided investors with more options to buy properties.
Besides the pleasure of living in
these properties, many see them as perfect investment opportunities. The high
return in a relatively short span of time has attracted numerous investors in
Kolkata.
Most investors usually look at
location, price, floor plan and possession date of the project. Other equally
important points to study are developer history, financial health and legal
clearances.
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Developer history: An
Important Factor
The amenities and facilities of a
project - attractive as they may be-- should not cloud a buyer's judgement. The
reputation of the builder is an important factor. The buyer should always be
informed about the previous projects constructed by the developer. A good way
to gauge the performance of the builder is to compare the prices of the
builder's completed projects with those of other real estate developers. If the
prices for both sets are similar, then it is advisable to buy from the
developer.
If the developer is relatively
new, it is advisable to always do a thorough check- on the performance and
delivery of other projects. The internet is a vast resource of information and
this should be used to research the new developer. While this is a secondary
form of research, a primary research should be done as well. The best sources
of information are local brokers or other customers of the developer.
Legal clearances: a must for all real
estate properties
Any real estate investment in
Kolkata or another city must be backed by all legal clearances. There are many
instances where buyers have faced serious legal issues due to inadequate
approvals for the project. It is a necessity for anyone buying property to
demand all clearances.
One quick and easy measure to
ensure there are no legal problems with the property is to check on the number
of financial institutes supporting the project. However, one must also seek
legal opinion before investing in a property.
Payment break-up
There are varying costs involved
in buying any property in Kolkata. While most advertisements focus on the cost
per square foot, there are additional costs involved when it comes to parking
spots, the floor and club membership fees.
Payment schemes are also
extremely important. Most investors need to apply for a loan when buying a
property. One should read all the terms and conditions carefully before
agreeing on any deal. Similarly the terms and conditions for the handover of
the property should be carefully understood.
Another important tip that must
be remembered is to always take up a loan repayment option which does not
burden the regular cash flow. A loan should never be taken with the expectation
of cash flow increasing in the future. Loan should always be applied based on
current cash flow and the prospect of it remaining the same for a long period
of time. This is the best way to avoid overspending and adversely affecting the
current financial scenario in the search of a perfect property.
