Which Is Better: Buying A Ready To Move House Or One Under Construction

Choosing between a ready-to-move house and an under construction property can be a tough decision. It’s highly advisable to consider your personal need, available finances, and the pros and cons of both options before you go property hunting.

Buying A Ready-To-Move House

Pros

You Can Move In Right Away

Buyers can occupy their newly purchased property as soon as the payment is made and the registration is completed.

You Get What You See

Plus, there are people already living in the housing complex. Getting their feedback about the builders, the housing complex, the locality, and other amenities, helps make the decision easier. You also get an idea about your future neighbors.

Cons

How Well Is It Constructed?

You have no idea what material went into its making. You only have the builder’s word about the quality of construction.

They Cost A Lot More

Ready-to-move houses cost about 25 % more than under construction houses.

More Paperwork To Deal With

Ready-to-move houses involve a lot of legal work and transfer documentation.

Outright Payment

All the payment needs to be made upfront.

Buying An Under Construction House

Pros

Cheaper

Under construction houses are significantly cheaper than ready-to-move houses by a margin of 20 % to 40 %.

Low EMIs Or Payment In Stages

Initial investment is low, and down payment involved for a loan is usually 20% of the property value. In case of payment in cash, the buyer has the freedom to pay in installments that are linked to the construction.

Higher Returns

Since under construction properties are generally in the non-core parts of the city, the price significantly appreciates as the area develops.

More Options

New projects keep coming up in various locations, so potential buyers have more choice in terms of location, price range, or even the floor on which they want a flat.

Cons

High risk

Buyers stand the risk of losing their money if the builders fail to complete the project due to several factors such as cash crunch, high raw material costs, or high interest rates.

You May Not Get What You Were Promised

The carpet area after completion is usually 70 % of the super-built area. Many extra facilities like parking areas, swimming pool, and gyms may never materialize.

Risk Of Low Returns

The market outlook may change during the construction period, and you may lose the advantage of high returns if the locality doesn’t develop as foreseen.

Delays In Completion Time

Land disputes, cash crunch, incomplete permissions from authorities can result in frustration as the construction can get delayed by as much as 1-2 years.

Low Quality Construction

Doors, window fillings, electrical sockets and switches may turn out to be of cheap quality. Plumbing may be done in a very inefficient manner in order to save pipe costs, and other facilities like children’s playing area, gardens, gym, etc., may not be up to the mark.

Loss Of Tax Rebate

Income tax benefits can be availed only after the construction is completed, and you obtain a possession certificate.

The ultimate decision to go for a ready-to-move or an under construction house rests with the buyer. Choose the option that gives you the maximum benefit.


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ApnaComplex is India’s most comprehensive web based housing society accounting, management and communication software. It is designed to make the life of residents and owners a lot better by bringing in more transparency and accountability in managing a housing society. Check out the features of ApnaComplex and sign up your society today to get the benefits! We offer a free 30-day trial as well so that you can try before you buy!


Real Estate Negotiation Blunders That You Should Avoid

A simple ignorant remark can ruin a very promising deal. Keep the following points in your mind while making a real estate negotiation in order to avoid making costly mistakes.

8 Fatal Real Estate Negotiation Blunders

Failing To Understand The Seller

Looking at the deal from the other side of the negotiation table can reveal vital clues that can be used to leverage the deal in your favor. Try to understand the urgency of the seller to dispose the house. Maybe the seller has certain financial pressures, or is moving to another city. If it’s a developer, s/he might need to sell certain number of units in a fixed time.

Failing To Understand The Market

Many buyers do not spend enough time to study the market and find out the prices of comparable homes. Most information is readily available online. Local real estate blogs are a valuable source of information. Talking to people who live in and around the property you intend to buy or visiting a local broker will also give you an insight into current market trends.

Revealing More Than You Should

Details like whether you want to pay for the house in cash need not be revealed, as this gives the seller an idea about your purchasing power. Your aim should be to ask as many questions as possible, while giving away minimum information about yourself.

Making Your Best Offer First

Some buyers think it wise to make their best offer first, and let the seller come to terms with it. Throwing away all you’ve got leaves youwith nothing to fall back on.

Not Having Other Options

Not having other options to look into makes you look desperate. On the other hand, letting the seller know that you are looking at other properties gives you an advantage.

Negotiating On The Phone Or Email

Trying to close the deal on the telephone or through email normally works out in the seller’s favor. The most effective way to secure a good deal is to do it face to face, as it gets your voice and your body language into the equation.

Making A Specific Offer

Sticking to a specific number could backfire and close the real estate negotiations altogether if the number is considered too low. It is wiser to present a range of figure instead. For example, Rs. 35 lakhs to Rs. 37 lakhs.

Getting Carried Away

Some buyers get so carried away in the negotiation game that they forget that they are there to purchase a home, and not beat the seller. If you like the property but the seller won’t go further down, consider whether the price fits into your budget. If yes, secure the deal!

Real estate negotiation is an art that requires careful consideration of a few simple factors, which if followed, can results in great deals.

Have more tips to share with us? Let us know in the comments below!


Get your Society on ApnaComplex – Today!
ApnaComplex is India’s most comprehensive web based housing society accounting, management and communication software. It is designed to make the life of residents and owners a lot better by bringing in more transparency and accountability in managing a housing society. Check out the features of ApnaComplex and sign up your society today to get the benefits! We offer a free 30-day trial as well so that you can try before you buy!


Real Estate 101: Things To Know About Khatha Transfer In Bangalore

A khatha is an account maintained by the Bruhat Bangalore Mahanagara Palike (BBMP), which contains details of a property such as the owner’s name, property dimensions, and tax details. A khatha is a prerequisite for selling the property, applying for a bank loan or for obtaining a business/building license.

When do I need to make a khatha transfer in Bangalore?

The need to transfer a khatha arises when there is change of ownership of the property in case of the death of the owner, sale of property, execution of a will or gift deed.

Where and how do I get a khatha transfer done?

A  filled-in “Application for Registration/Modification of Khatha” form needs to be submitted at the respective BBMP office along with the following documents- the title deed, tax paid receipts, khatha details, receipt of improvement charges paid, National Saving Certificate for Rs. 200, Death Certificate of owner of property (in case of death), and a legal heir affidavit .

What is the fee for khatha transfer?

Applicants are required to pay a 2% administration fee on stamp paper value, and also an improvement fee of Rs. 100 per sq. yard in new areas, and Rs. 50 per sq. yard in older areas.

The procedure for khatha transfer in Bangalore

The following guidelines should help you through the process of khatha transfer in Bangalore.

  1. Get a copy of the sale deed attested/notarized: This can be done at any notary’s office in Bangalore for a nominal fee of Rs. 100.
  2. Get an Encumbrance Certificate: You will be required to submit a copy of the sale deed along with the EC application form. The certificate is usually issued within seven days.
  3. Get a khatha registration/transfer form: The form can be downloaded online from the BBMP website. Alternatively, it can be obtained from the BBMP office for a fee of Rs. 10.
  4. Submit the filled-in application: The filled-in application form, along with all the required documents need to be submitted at the BBMP office. Make sure that you get back the duly stamped acknowledgement card that is part of the application form.
  5. Status of your application: It normally takes about 15 days for your application to be processed. In case you do not receive any intimation from BBMP within two months, you can file an RTI regarding the status of your application.
  6. Property Assessment by officials: Revenue officers from BBMP will visit your site for property assessment. They will measure the plot, and value the property.
  7. Payment of registration fee: BBMP will issue a demand note indicating the registration fee to be paid, which is generally 2 % of the value reflected in the sale deed.
  8. Final registration: Within 10-15 days of the payment of registration fee, you will receive a notification for payment of property tax as assessed by the revenue officers who visited your property. The khatha extract will be issued only on clearing the tax liabilities.

Make sure you have all the documents and applicable fee ready before you apply for a khatha transfer in Bangalore in order to save unnecessary delays, and hassles.

Have more information to share with us? Let us know in the comments below!


Get your Society on ApnaComplex – Today!
ApnaComplex is India’s most comprehensive web based housing society accounting, management and communication software. It is designed to make the life of residents and owners a lot better by bringing in more transparency and accountability in managing a housing society. Check out the features of ApnaComplex and sign up your society today to get the benefits! We offer a free 30-day trial as well so that you can try before you buy!


Real Estate Negotiation Tips – Eight Tips That Every Buyer Must Know

With a lot of money at stake, every buyer would want to get the best deal possible in the market. Here are a few helpful real estate negotiation tips to help you increase your success rate on the negotiation table while closing the deal on your dream house.

Eight Effective Real Estate Negotiation Tips

Plan Your Budget And Know Your Upper Limit

Once you know how much you can afford to spend, it becomes easier to bargain for the best deal. Plus, knowing your upper limit will stop you from making an offer that would hurt your finances later.

Research The Market To Know Where You Stand

Find out the prices of similar properties in the local market. Meet local brokers and get an idea about how much you can quote for a particular property. Knowing the present market scenario helps you counter the seller’s prices with a reasonable and fair offer.

Put On Your Poker Face

Remain calm and neutral. Do not reveal your personal limit, your interest in the property, or your borrowing capacity. Try not to get excited about the property as this gives the seller an idea about how much you like the house.

Know The Seller’s Reason For Selling

Knowing why and how quickly the seller wants to dispose the property will give you a lot of leverage in the negotiation process. Also, check for how long the property has been up for sale, and if there are any problems with the property.

Start Low And Never Make The First Offer

Let the seller quote a price before making your offer. Always start at 15 % to 20 % lower than the seller’s expected price. Be moderately flexible, and gradually come down to about 7 % to 8 % lower than the seller’s initial price.

Walk Away Politely If Negotiations Fail

If negotiations fail, or you cannot secure a deal that falls within your budget, make your best offer and walk away. Do not make the mistake of getting stuck in a deal that you’re unhappy with. Often the vendor will get back to you if he or she doesn’t find a better buyer.

Be Armed With Cash Or A Pre–Approved Home Loan

Developers are always keen on selling inventory. If the seller knows that you are serious about buying the property, he or she is more likely to come down to your terms to seal the deal as quickly as possible, before you go to somewhere else.

Let The Seller Feel Happy Too

There will always be multiple items to negotiate over. Negotiate primarily on the price, and let the other party believe that they have won the negotiation by providing them with more favorable settlement terms. This way everyone is happy!

Sealing the final deal might involve meeting the seller or the seller’s agent more than once. Be calm and do not lose your patient. Use these real estate negotiation tips to your advantage, and always remember, if negotiations fail, you always have other interesting properties to check out.


Get your Society on ApnaComplex – Today!
ApnaComplex is India’s most comprehensive web based housing society accounting, management and communication software. It is designed to make the life of residents and owners a lot better by bringing in more transparency and accountability in managing a housing society. Check out the features of ApnaComplex and sign up your society today to get the benefits! We offer a free 30-day trial as well so that you can try before you buy!


Should You Buy Or Rent A House In Bangalore?

With rents in Bangalore escalating faster than annual pay rises, buying a house of your own could be a smart choice. However, unlike what some people say, in certain cases renting a house can be more economical than buying a house on EMI. Here are some important factors that you might want to consider before deciding whether to buy or rent a house in Bangalore.

Indicators For Deciding To Whether To Buy Or Rent A House

The Rule of 15

Multiply your annual house rent with 15. If buying a house in your locality costs less than this amount, you’ll definitely save more by buying a house. For example, say you pay a monthly rent of about Rs. 20,000 (or Rs. 2,40,000 yearly). So, the basic rent-buy cutoff price would be Rs. 36,00,000.

Do I buy or rent?

If you pay high rent, and you cross the threshold of the rule of 15, consider buying a house.

How long do I plan to stay in Bangalore?

Buying and selling a house within a couple of years will result in the loss of about 6 % to 7 % of the cost price in terms of transfer taxes, and real estate commissions.

Do I buy or rent?

If you plan on staying in Bangalore for fewer than 3 to 5 years, it is advisable to rent a house.

How much do I initially have to invest?

Renting a house or an apartment in Bangalore requires paying ten months’ rent as security deposit. This amount can be recouped at the end, provided you do not damage the house. Buying a house involves a down payment of at least 20% of the cost of the property, plus the processing fee for the loan and the legal counsel fee for getting the property documentation verified.

Do I buy or rent?

If you can’t afford to set aside 20 % of the property value, rent instead.

Who pays for the repairs?

Owning your own house means paying higher insurance, and shelling out more towards maintenance costs. Maintenance is no longer as simple as calling your landlord to get the repairman to fix the leak in your shower.

Do I buy or rent?

If you do not have the time to get things done personally, or aren’t willing to bear the higher maintenance costs, rent a house.

The Final Verdict

Buying a house in Bangalore is increasingly becoming profitable, particularly with the real estate market yet to recover from the recent low. Whether you decide to buy or rent a house depends on your finances, and a few other factors as discussed above.

The bottom line is, if you plan on staying in Bangalore for a considerable period and are financially stable, consider buying if not, continue renting for the time being.


Get your Society on ApnaComplex – Today!
ApnaComplex is India’s most comprehensive web based housing society accounting, management and communication software. It is designed to make the life of residents and owners a lot better by bringing in more transparency and accountability in managing a housing society. Check out the features of ApnaComplex and sign up your society today to get the benefits! We offer a free 30-day trial as well so that you can try before you buy!


Four Reasons For Buying A House During Monsoon

The monsoon may not seem like the best time to go house hunting. No one likes to drive around in pouring rain, not to mention the innumerable puddles, and exasperating traffic jams. Well, believe it or not, monsoon is one of the best seasons to seal a deal for a property acquirement. Here are four convincing reasons for you to brave the elements, and go looking for a house this monsoon.

Make The Best Of Monsoon Discounts

Monsoon is a dry season in terms of real estate sales. Besides the heavy rain, most people avoid buying anything for two weeks during monsoon, as they consider it inauspicious because of the ceremonies of shraadh or pitrapaksh. Luckily, this is the best time to get a good bargain as developers normally offer monsoon discounts to boost their sales. Although developers may not advertise it as a monsoon discount per se, most of them are more than willing to offer lower rates to serious buyers in order to clear existing inventory.  The amount of discount you can avail varies for different cities, depending on how badly the city is affected due to monsoon.

Choose The Most Ideal Locality

House hunting in monsoon will reveal a lot about the water logging problems in the locality. Driving around in blustery downpour will also give you an idea about traffic problems, and the time required to commute to and from that locality.  This is especially helpful if you have recently moved to a new city, and are yet to learn about various localities and the associated geographical problems. Looking for a house during monsoon saves you a lot of trouble as you know what you’ll be dealing with during the next monsoon.

Avail Special Monsoon Home Loans

It’s not just the developers who are keen to boost their slow business during monsoon. Even banks and financial institutions are more likely to negotiate interest rates and offer attractive home loans during monsoon. However, with the recent rate hikes by the RBI, your credit profile might be an important factor while securing a lower interest rate.

Inspect The Property During The Worst Season

In case of partially or fully completed properties, inspecting the house during monsoon will give you a fair idea about its construction and reliability. You can easily spot signs of dampness or leakage, and avoid buying an ill-constructed house. Structural soundness of a building is an essential factor, as you may end up spending a huge amount on repairs if the house turns out to have water seeping problems.

Now that you know why it can be very profitable to buy a house during monsoon, you can very well put on your rainy gear, and set out to find your dream home. Not only do you stand a chance at striking a real bargain, you also benefit from the lower home loan rates that are generally offered during monsoon.


Get your Society on ApnaComplex – Today!
ApnaComplex is India’s most comprehensive web based housing society accounting, management and communication software. It is designed to make the life of residents and owners a lot better by bringing in more transparency and accountability in managing a housing society. Check out the features of ApnaComplex and sign up your society today to get the benefits! We offer a free 30-day trial as well so that you can try before you buy!