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- Hi Sandeep,
I am not aware if any agency will do the diligence work but any local real estate lawyer should be able to check the relevant papers for you.
IMO, you don't necessarily need to obtain loan to achieve your goal. You can shortlist the properties in which you are interested, approach banks (at least 2) if they would give you loan for those properties-pretend that you need loan. If yes, it means the project is already approved by bank and hopefully they would have already done the diligence work. If any of the bank is not willing to issue loan for any specific project, then enquire about the problem.
Hope this helps.CommentQuote0Flag
- My personal/professional opinion about banking loan is that
1) it is the cheapest loan available in the market and you can use it to leverage your position for investing.
2) So instead of buying a single property with all my money put in, I would buy two properties with either both or a single one financed by the bank and would sell one when required and make some capital gains. (of course some factors need to be considered)
3. Some good projects which start under construction give you around 25 to 30% annual returns and a bank loan is about 10% so you use someone else's money to make your own money.
4. Loan nowadays is not a big hassle, they normally require your bank statement, salary slip, form 16 (in case you file returns).
Most banks will send their person to the developer in case of a good project or will give you a list of docs reqd from a developer (normally these are readily available with developers because to sell their project they need to have these papers.
Let me know if this helps.
- If you are an NRI most banks will stumble upon eachother to give a loan to you for obvious reasons...because u dont need it! And yes first check if the said project has a tie up with any lending insitution. If you ask the builder he will say yes u can get finance from all leading institutions etc etc. Just check any ebrochures etc which will have the bank logo etc.That will mean that the project has been checked and chances of things going wrong are minimised. However pace of construction is something that u are totally at the mercy of ur builder. 40L for a 1000 sq ft in khargar sounds under priced atleast in my interaction with borkers. U may want to re assess ur builder's credentials. Always better to go with an established buider after checking their track record.CommentQuote0Flag
- Thanks for the response team..
Highrisemumbai - I like your idea of leverage to multiply my returns but unfortunately i am stuck with a low risk appetite and given the uncertainty in the mkt today would like to deal with owned money as opposed to owed (especially since this is my first ever property purchase)
Sreekys- Thanks for your advice on due diligence. I do agree that my price expectations might be a bit outdated and might have to bump up the limits. I will separately seek guidance from you all once I have locked on specific constructions.
In the end I think I will go with Budhha's suggestion of a real estate lawyer and cut out both the bank and the broker. I think that combined with other common sense checks around reputation, bank sponsors etc, it should do the trick
Thank you all for you help