Preamble
These consumers in all level are who invest their hard earned money for their Dream Home and I would like to give some selection tips to safeguard their money.
First of all, if you have decided to buy a home for investment purpose, I did the below analysis in order to give holistic approach to who wants to either invest or to buy for dual purpose (investment & own a home)
If you bored to read, you can watch video within the section. If you have already decided and didn't want to deviate for any reason, skip and scroll down for How to decide Buying your home/apartment – Fair selection tips in this page
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Current situation in Real Estate- Whether Real estate investment is really worth?
Indian Real
estate market is in severe stress and all over India 7lakh unsold properties
are available as per RBI data as on July
2021 . Though
the backlog is cleared from 8.5 lakh units by 2020 to 7 lakh units by first
quarter of 2021, it is very slow while comparing previous decade growth and
further resale value & growth may decline due to job loss, business dead
locks due to pandemic which resulted in non-completion, inventories by the Real
Estate Industry.
Statistics from census India shows that 86% of population has Liveable House for them. Upgrade of those houses depends economic growth and people buying capa in future
The population/working society growth from the previous century may still come down due to Artificial intelligence, Age dependency of old is increasing, Age dependency of young is decreasing, as per the statistics of world bank
Moreover, 65%
of the people of India lives in rural areas and 35% live in urban areas. The
proportion residing in urban areas has doubled in 2020 from 17% in 1950 and is
expected that half of the India population will be in urban areas by 2050.As of
2020, Share of population in the age group 0-14 is 26.16 percent. Share of
working age population (15-65 years) is 67.27 percent. 6.57% Indian has age
more than 60 year. (Source - https://statisticstimes.com/demographics/country/india-population.php)
In a pessimistic
outlook, 67.27% share of working population (15-65YO) will reduce by 2050,
burden on Government or the younger generation will increase with respect to
financial position. In optimistic outlook, migration towards urban will
increase by 10-15% as per above source and all these factors may give very less
impact on Real estate sector in Environment Change scenario
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| As per my excel sheet analysis - FREE excel file link in this article |
Hence, we would suggest to take wise decision before investing or buying your Home
Watch our video to know the Value of Investment in Stocks & Mutual rather investing in real estate and use the excel sheet down below this video.
Download FREE excel sheet- Analysis on How to decide buying your home
How to decide Buying your home/apartment – Fair selection tips
Investing in ready to occupy, best locality, best quality properties will yield result in short & long run. Even though second hand/resale property, it will save your cost, time, mental fatigue for greater extent.
This article
doesn’t suggest you to invest or How to Decide for Rent or buy fact but gives
you fair selection process & tips in consumer perspective for the really
needy consumers on How to decide buying your Home & tips to avoid
complications at later stage.
To keep it
concise, we make How to decide Buying a Home as 3 Phases as below
1. Plan
a. Builder & Project selection
b. Cost analysis
2. Execute
a. RERA, CMDA approval & CREDAI certifications
b. Builder- Buyer agreement & Correspondence
3. Check
a. Visit site & Ensure timely completion
b. Communicate & record
1. Plan - a. Selection of Builder, Project
We are not
going to beat around bush as there are plenty of articles to decide. BEWARE
that most of the articles from any third party either suggests to become their
member to use their tool and they claim that already made analysis and you have
to just select best project/builder. Few of them seems to be third party will
refer to builder’s website which is prefixed.
We strongly
suggest to make an excel sheet so that analysis will be fair, transparent and
can be referred throughout the time till you finalize Buying your Home and may
help someone
Make an
excel sheet 1 as shown below, analyse & record all factual observation
about the project, builder in respective columns.
Example
facts (on what basis you have to key in the observations) are provided in
respective excel column but not limited to it. You can collect these facts for
as many projects as you want but more numbers will confuse you more, hence keep
it precise and bring best out of better of short listed. Based on the observed
facts, you can give score in either in each column (to have more calibration)
or cumulative at the end of the sheet for respective project & builder
Let’s keep
away discussing about your own eligibility of budget as it is very simple &
straight and is purely based on your financial capability & bank loan
eligibility. Hence you will have complete control. You have plenty of advice on
web for this
With
respect to your Home budget, the cost is derived based on the locality,
quality, amenities they provide
Make an
excel sheet 2 as shown below, analyse & record all factual observation
about the cost in respective columns. Again, this is also same like above
selection methodology for all the projects you identified in sheet 2.
Differentiate Fixed & Operational cost. Fixed cost is your
initial investment (including your loan re-payment tenure & money). Operational
cost is regular monthly expenditure for your transportation, maintenance & other associated cost. Based on the observed facts, you can give score in
either in each column (to have more calibration) or cumulative at the end of
the sheet for respective project & builder
Key – The longer you go from your office, children school, the more burden on the earth. In future, energy conservation, Carbon foot print, pollution contribution, Go green will make a huge impact. Consider those factors for your future generation and Green Earth. If you go longer the distance, many investors will pump the money for their lateral benefits and you may not have proper attention for your welfare as a family
Factors
to consider – Cost of Investment (including registration, stamp duty, GST), operational (including
maintenance , monthly subscription to your apartment if any, travel
distance of your office, children school/colleges, amenities)
Finalizing
your plan on How to decide Buying your Home
Finalize few best project & builder which suits you, never compromise your builder selection as it will reflect bad. From the cost sheet, finalize & choose few projects based on your affordability. Make an excel sheet 3 as shown below, bring in all results from sheet 1 & 2 and decide based on facts.
Your initial investment to be from your surplus money or from the savings you have. Try to avoid stretching for personal loan from friends, pledging your jewels (selling is better than pledging if required)..etc as it will be a burden you when the EMI starts
Hope this helps, please leave your clarifications & comments if any and I will try to give my best
Download FREE excel sheet- Analysis on How to decide buying your home
Visit our next article – Phase 2 Execution
1. How to check RERA approvals before buying your home
2. What is Builder Buyer agreement and How to check it myself inline with RERA
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