Pune has been one of the favorite destinations for real estate developers and home seekers for many years. Owning a property in Pune is a dream for each one who wishes to have a lavish lifestyle amidst nature.
Buying property is a tedious process. However, thanks to the internet, buyers now have plenty of information available to research the whole buying process. It takes years of planning and savings to buy a home.
Whether you are a first-time property buyer or a seasoned pro, there are some common mistakes that you are bound to make. Many things can go wrong unknowingly that can turn your dream into a nightmare.
In this article, we have penned down various mistakes that you should avoid while buying a property in Pune.
1. Spending More Than Your Budget
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Many home buyers tend to get attracted by the additional amenities offered by the property developers in Pune. However, it is important to fix a budget and stick to it. Initially, it will seem ok to stretch the budget a bit.
But you need to keep in mind the probability of reduced income or financial setbacks that can cross your budget. It will impact your other aspects like educational and medical expenses. So, try not to over exceed your budget.
2. Lack of Proper Research
One of the common mistakes buyers make is to go on a property hunt without any research or information. Today, information technology is the biggest source of information from which you can get ample information about the property you have an interest in.
Collection information also includes an understanding of the family’s finances, needs, assets, and debts. Good research and planning will help you in searching for an ideal property in Pune. Make sure you have information on the locality, neighborhood, proximity to facilities like schools, and hospitals.
Take into account the commute, traveling time, connectivity to airport and railway stations, and scope of future development.
3. Not Buying Insurance
Property is one of the most precious assets one aspires for. So, you should safeguard it. However, many homebuyers make the mistake of being underinsured. A property owner insurance policy covers your asset, valuables, damage to the property, and living expenses.
Do not forget to work with your insurance broker to get home insurance. It will cover the hazards like earthquakes, floods, and various other natural disasters.
4. Not Verifying Property
The buyers need to verify the property you seek to buy. The Indian Parliament issued the Real Estate Regulatory Act in 2016. It is to boost the enhanced investment in the real estate sector and secure the buyers’ rights.
You should verify whether a property is RERA approved or not. A property has to be RERA approved as it ensures a standard process for purchasing property across India. The act ensures a fair transaction between sellers and buyers.
5. Selecting Down Payment
Many real estate developers in Pune will offer you a flat at a minimum down payment. However, paying a lower down payment implies a higher EMI and interest. Moreover, if you wish to sell the property at an early stage, you will get a lower equity. It might result in a non-profitable deal.
So, try to increase your down payment while you buy a property in Pune. It will avoid you from paying mortgage insurance. You will have to take a lower amount from the bank.
6. Underestimating Hidden Costs
Buying a new home brings new excitement. But do not forget to calculate the hidden costs like repair or remodeling costs. Analyze the project carefully and consider the overhead costs. Calculate also the registration fees, property taxes, home insurance, society maintenance costs, and parking.
Focus on moving costs as these are also an integral part of the expenditure. Moving costs will be high if you are crossing the state boundary. You can go out of budget if you are selling an old house and moving into a new one at the same time.
7. Not Hiring an Agent
The home acquisition is a tedious task and not having an experienced agent can land you in trouble. A buyer’s agent will guide you at each step from determining the best property for you, negotiating with sellers, and drafting an offer.
An experienced buyer’s agent will manage all the paperwork while closing a deal. The agent splits the commission with the listing agent on the sale to whom the buyer pays. So, usually, their services are almost free for you.
8. Not Buying from a Reliable Builder
Try not to purchase a flat from an unknown builder or one having a negative image in the industry. It might cost you some money but you may have to compromise on quality work and legality of the building.
You might also face delays in getting possession. However, purchasing a property in Pune will assure that building is legal in terms of approval and land title. You do not have to worry about the quality of construction, materials used, and timely delivery.
9. Going after Discounts
It is no harm to seek a discount while purchasing a home. However, try to be sure that getting a discount is the only factor on which you are making a decision. A builder who offers a higher discount might not deliver a timely and quality flat.
You might face delays if the builder lacks financial viability. So, look after the track record of the real estate developer and try not to depend on discounts.
Buying a flat can be overwhelming and stressful. It might come with some pitfalls that you should overcome. You need to understand the factors that you might ignore unknowingly and result in an irreparable loss to you.
Try to gather information from various sources and set your budget. You can refer to the above aspects that you should avoid while searching for a property.