With a number of reputed builders coming up with new housing projects across major cities of the country, the time is ripe for you to own your first home. Residential projects like Arkade Earth and Arihant Anaika offer 2 BHK and 3 BHK flats in Mumbai with all modern amenities you can think of at affordable prices.
However, while making one of the most important financial decisions of your life, it is imperative to be smart and diligent with your choices. You must be clear about the nitty-gritty of the property, the locality, the amenities provided by the property, and how you would like to finance your purchase.
If you are a first-time home buyer, here is a guide to making a safe and secure investment:
- Understand the difference between super-built area and carpet area
Real estate developers quote the super-built area of an apartment and calculate the price of the property based on this measurement. However, the actual floor area of your apartment, known as the carpet area, is slightly lesser than the super-built area
The super-built area includes the common areas of the property like the staircase, elevator space, lobby etc. Generally, the carpet area constitutes 80% of the super-built area. Thus, if a particular floor has five flats, each owner will have to pay 20% of the value of the common spaces.
- Do not idealise the sample apartment
A sample flat is aimed at attracting prospective homeowners and includes several details that are not a part of the actual apartment. To give the sample apartment an impression of space, the builder may incorporate higher ceiling, glass doors and ambient lights. The sample flat may also have exclusive fittings and furnishing that are not offered in the actual apartment.
In case you want to incorporate the special components of the sample flat in your flat, you may have to pay extra money for it. So, it is in your favour not to go by the sample flat and inquire about each and every aspect of the apartment to avoid disappointment.
- Check if the builder has all the permits
It is crucial that a developer of real estate in Mumbai or any other city of the country has all the necessary permits and clearances in place before starting the construction of the housing project. Such permits and clearances may include correct land usage permit, clearances from water and electricity boards and local registration body, or special clearances for construction of high-rises.
Absence of these permits and clearances may lead to your suffering during the registration of the flat. Thus, it is a good decision to invest in a project that is under construction and others have already invested in it.
- Know the clause of late possession
Many a time, developers face delays is finishing the projects and giving possession to homeowners. The reason behind this can be many and may include unavailability of funds with the builder, delay in supply of raw materials, stagnancy in sales of property etc. Also, construction can be a little slow during the monsoons.
Keeping all these factors in mind, developers usually seek a grace-period for the delivery of the property. The builder-buyer contract should explain this grace period in detail. In case you do not get possession of your property post grace period, the builder is liable to pay a penalty that is determined by the base price.
- Read the builder-buyer agreement
If you book a flat in Arkade Earth or any other housing project by paying a certain amount, you will receive an allotment letter from the developer. Post this, you and the builder will have to enter into a tripartite agreement for the remaining amount. At this state, you and the developer will have to sign the builder-buyer agreement.
This agreement may be biased in the builder’s favour. It may include clauses that will give the developer the power to raise the rate of the property at the time of possession. Hence, it is in your interest to read the agreement thoroughly and understand the clauses.
Verifying the price of the property, assessing the location of the property and the amenities provided by it, and additional costs that need to be incurred are other factors that you need to consider while buying your first flat. To suffice finance requirements, you can opt for home loans from Bajaj Finserv Homes & Loans.