Points to Keep in Mind while investing in Real Estate

We spend a lot of time analyzing the location, amenities, features, value, bedroom sizes, balconies, parking etc. Here are some.critical things that you must keep in mind while taking the all important decision of investing your hard earned money in Real Estate.

1. RERA of the Project and your Agent – Real Estate Regulatory Authority since its inception has become a great tool for buyers to protect their interest. The issues which had become major deterrents for a buyer are now gradually fading away. A developer needs to define the timelines of delivery, building plan and all necessary approvals to RERA which can also be accessed by a buyer. One must ask for RERA number of the project and verify the details. In accordance with the RERA guidelines a developer also has to declare the penalty amount in case of a delay in delivery of the project. One must also verify that the agent has a valid RERA license to act as an agent.
2. Past Projects of the Developer – Past deliveries and quality of projects are fair indicators and gives insights about the developer and his vision.
3. Verify Clear Title – The developer must have land ownership title or permission to sell if the land ownership is with a third party.
4. Project Brochure – The layout plans and all details mentioned in the brochures of a project are approved by RERA. You may also verify      the details mentioned on the brochure from RERAs website. This is very important if you are investing in an under construction project.
5. Builder Buyer Agreement – RERA has created guidelines for Builder Buyer Agreements. One must ensure those guidelines are met.  This holds more relevance in case of under construction property.
6. Review the Pricing – Understand the pricing in detail. A lot of developers follow the practice of quoting Basic Selling Price plus other charges. One must understand in detail these other charges and also ensure that there are no other hidden costs. Even in the case where developers talk about an all inclusive cost, one must ensure there are no overheads involved. However, there could be slight changes in super area at the time of possession.
7. GST – GST is only applicable in case of an under construction project. If the project is nearing completion, it is advisable to wait for the developer to announce the possession and then invest. This strategy may not work at all times and few other factors may also need to be considered.
8. Payment Plan – Developers may have multiple plans available with some difference in pricing. Calculate your opportunity cost and Mortgage Cost before committing to a payment plan. Once a payment plan is chosen, it is very difficult to get it changed as all the costs and documents are prepared accordingly.

If a buyer defaults in payments, the developer can charge interest or in some cases even cancel the booking and forfeit your booking amount as penalty.

Raunaq Singh Arora

Ace Consulting

You may connect with me at

raunaq@aceconsulting.co.in