Announcement

Collapse
No announcement yet.

Dummies guIde to purchase a property in GGN, Noida..elsewhere

Collapse
X
Collapse

Dummies guIde to purchase a property in GGN, Noida..elsewhere

Last updated: May 15 2013
30 | Posts
  • Time
  • Show
Clear All
new posts
  • #11

    #11

    Re : Dummies guIde to purchase a property in GGN, Noida..elsewhere

    Hey Ashish ... Please allow me to share my experience of buying my first apartment. There might be few things I did during the purchase that were right and few were wrong. It would be good to share so that I don't repeat the wrong things for my next purchase. If I can muster courage to do it again.

    One fine morning I was sitting looking at the newspaper. I saw a Huge page ad ... apartments available in Project X in NCR for as low as 25L and possession in 4 years. Passed through it ... after my breakfast there was this flash in my brain ... Hmmm .... I should be able to manage 25L in 4 years without taking loan.


    In the afternoon I see myself staring at the brochures in the Project X office. There were few things I knew before I went there:


    1. No loan
    2. Need a decent enough property that I can afford.
    3. Don't want high funda luxury
    4. Wanted everything transparent
    5. No resale

    Talking with brokers there which I thought were the project staff. I decided to buy a 2BHK apartment in a complex. Happy with my decision I went back home. Mu budget was stretched to 28L but I was ok. Next day I went to give the booking amount. To my surprise now this apartment was not available. I was sad as the broker asked me to come to finalize the deal. So I was like what next ... broker said I should give him the booking anount and he will find a good apartment for me. I did'nt agree and left.


    Later I realized that those guys whom I was talking to brokers and not the project staff. Next day I bypassed everyone and went straight to staff. I asked them that do you have any availability in the complex I liked. They replied "No" ... I asked "Do you have anything else". "Not in this complex but different complex". But this new complex was starting 7X Lacs. I asked ... Do you have lower than that ? Yes there is one more complex that is available but it starts from 5X Lacs. Hmmmm .... Pissed from my previous experience ... I asked "Can you confirm availability in writing". They said yes. Went back home ... talked with everyone at home and decided may 5X L is still okay considering better specs than the 28L one plus they are confirming availability. Next day went and gave the booking amount.


    1 month passed but booking amount was not deducted from my account. Called the office and realized that the apartment I selected is not available. I was like what do I do now. I asked then to return my check and my application. I was angry and frustrated that I am ready to stretch my budget and buy but still these guys cannot give me correct information about availability.


    Then I started calling brokers ... asking which apartment do you have in the project which I liked. After talking to 4-5 brokers I had a good idea of what apartments are available in which tower in the complex i liked as all of them told me more or less same apartments that are available. But all were quoting maximum BSP with no discount.


    By this time everyone knew I was looking for an apartment. Among many calls that I got I decided to meet one of them. I asked that I want this tower and these apartments are available in that tower. I don't want these floors. After much deliberation I booked an apartment on a floor that was okay and at a competitive price. No Loan. Straight FRESH deal under CLP.


    Now I am paying the builder whenever they request. Everything is clear with no issues.


    In the end ... I got something that I was not looking for initially but I feel okay. Does everyone faces same confusion and helplessness while buying their dream home.

    Then my stupid brain replies ... "Wait ... more will come when you start living in it ... Ha Ha Ha"
    Last edited December 1 2012, 03:03 AM.

    Comment

    • #12

      #12

      Re : Dummies guIde to purchase a property in GGN, Noida..elsewhere

      Should i believe what i read

      buying property is a good journey that will keep u engaged b4 and after the purchase for quite number of years....In share investment seniors advise to newcomers is to go for paper trading...meaning trade only on paper without actually investing money...i wud suggest the same for property...pick the property that u like...follow it for few months...make site visits..get information abt the builder...finally commit./ withdraw...This shld make sure u r safe...

      Today i am going to share one of the other trap that new buyers may easily fell for....they are the news articles in leading newspapers esp. on property pages...i am fully convinced that most of them are paid or have some vested interest...so read them for facts and not for advice..if u wish advice than better check the websites or posts from professional realty advisors like Jones Lang LaSalle, Wakeman cushfield , Knight & Frank and some others...they are advisors to large corporates, financial institutes, banks and foreign investors. therefore they cannot afford to
      write false information / advise...More over their advise is usually backed by data...

      i do buy some realty magzines too...they r costly (rs 100) but r not really worth the money...however once a while i do purchase them , may b a special issue or for some particular information...

      Overall relying too much on general reading will not b very helpful ...so dont get obsessed with them...field work and ears to the ground are better tools for decision making..

      cheers
      2 b contd..
      Last edited December 1 2012, 09:38 AM.

      Comment

      • #13

        #13

        Re : Dummies guIde to purchase a property in GGN, Noida..elsewhere

        Elementary Dr, Watson, said Shelock Holmes !

        Many of us have read the detective works of Sherlock Holmes...his famous one liner is " Elementary Dr. Watson !" which he (Sherlock ) exclaims after unlocking a case bit by bit to a surprised, wide open eyed Dr. Watson - his friend... So what was the method adopted by Sherlock Holmes in demystifying a gruesome murder while his friend Dr. Watson could not get a single clue...??

        AS an avid reader of all the novels I can say Sherlock had the following qualities:

        :1. good intellect
        2. very knowledgeable..

        but then so was Dr. Watson to some extent...but Sherlock was different...the basic rules of Sherlock was>>
        1. Look beyond the obvious.
        2. Observation
        3. Stick to Basics../ fundamentals..

        The last rule is important for property buying and I have taken the time to write about Sherlock was to just highlight this point...whether u play cricket, read Sherlock or buy property: the golden rule is STICK TO THE BASICS..the farther u go from the basics the more is the risk...So if the basics say that stick to a good and reputed builder while u go for some fancy and new builder u are on a higher risk...( that does not mean that the new builder will not deliver..its just the probability of going wrong)...Second if the basics tell that dont go beyond ur budget ( with some extended vision ), in plain hindi, jitni lambi chadar ho utne h pav pasaro, and if you try to go for luxury u r making to risk ur life...Basics tell that all that glitters is no gold ..so be careful if something is abnormal ..cheap price, extended EMI etc etc..have many clauses that should be seriously considered ..they can be well oiled traps too...remember the builder is also there for making money and not for charity..

        In a nutshell, when you are going to buy a property the most important rule will be to remain reasonable with your planning, logic and budgeting...Anything abnormality ( away from basic) is sure sign of some accident ahead...

        To quote Sherlock again, "Detection is, or ought to be, an exact science and should be treated in the same cold and unemotional manner." and so is buying / investing in proerty.

        best wishes..
        Last edited December 2 2012, 09:33 AM.

        Comment

        • #14

          #14

          Re : Dummies guIde to purchase a property in GGN, Noida..elsewhere

          Originally posted by asheesh1963 View Post
          buying property is a good journey that will keep u engaged b4 and after the purchase for quite number of years....In share investment seniors advise to newcomers is to go for paper trading...meaning trade only on paper without actually investing money...i wud suggest the same for property...pick the property that u like...follow it for few months...make site visits..get information abt the builder...finally commit./ withdraw...This shld make sure u r safe...

          Today i am going to share one of the other trap that new buyers may easily fell for....they are the news articles in leading newspapers esp. on property pages...i am fully convinced that most of them are paid or have some vested interest...so read them for facts and not for advice..if u wish advice than better check the websites or posts from professional realty advisors like Jones Lang LaSalle, Wakeman cushfield , Knight & Frank and some others...they are advisors to large corporates, financial institutes, banks and foreign investors. therefore they cannot afford to
          write false information / advise...More over their advise is usually backed by data...


          i do buy some realty magzines too...they r costly (rs 100) but r not really worth the money...however once a while i do purchase them , may b a special issue or for some particular information...

          Overall relying too much on general reading will not b very helpful ...so dont get obsessed with them...field work and ears to the ground are better tools for decision making..

          cheers
          2 b contd..
          Professional realty advisers are there to push for their investment and investment of their big clients. Who says their report cannot be motivated. The only difference is they operate on much bigger levels and can write good lengthy reports with lot of graphs and curves.

          There is no free lunch in this world. Knight and Frank is now pushing for investment in Noida extension..........

          Where were these advisers in 2008-09. All of them were advising caution and suggesting to wait.

          Comment

          • #15

            #15

            Re : Dummies guIde to purchase a property in GGN, Noida..elsewhere

            Hats off to you Asheesh for taking pains and writing some good stuff which I am sure will be very valuable to RE buyers. Why not make this thread a sticky? I too bought a property last month and I also went through many brokers. Luckily I ended up with a very good broker. I think a broker who wouldn't stick to his words some times makes it very obvious. Its for the buyers to observe closely all the brokers and find out whether he is talking sense or he is just pushing a deal to achieve his target.

            Comment

            • #16

              #16

              Re : Dummies guIde to purchase a property in GGN, Noida..elsewhere

              For the first buy as a end user, prefer to get RTM. It may increase your budget somewhat but you know for sure, what you are getting. There would be no chance of years of delay, fraud by builder, more congestion possibility by increasing FAR, very less chance of getting another structure in front of your flat,etc.
              I have seen people who have paid PLCs to get flat in front of club, swimming pool, market complex or open area which ended up in getting a market toilet/dump yard or smoky and loud genset or another floor/tower in front of their flats in name of increased FAR.
              Go for small but definite thing.

              Comment

              • #17

                #17

                Re : Dummies guIde to purchase a property in GGN, Noida..elsewhere

                Thanks chilleezz...iam glad u liked the thread..to make it sticky i think u need to recommend it to admin / moderators..

                best wishes for ur property ? u can share some details n the logic for the decision..

                Originally posted by chilleezz View Post
                Hats off to you Asheesh for taking pains and writing some good stuff which I am sure will be very valuable to RE buyers. Why not make this thread a sticky? I too bought a property last month and I also went through many brokers. Luckily I ended up with a very good broker. I think a broker who wouldn't stick to his words some times makes it very obvious. Its for the buyers to observe closely all the brokers and find out whether he is talking sense or he is just pushing a deal to achieve his target.

                Comment

                • #18

                  #18

                  Re : Dummies guIde to purchase a property in GGN, Noida..elsewhere

                  Stick to the basics:

                  I have already highlighted the importance of basics whether we are into share investing, or buying property or playing cricket for that matter..one of the mistake that many of the Indian batsman commit is to 'tinker' (chedkhani) with an ball away from the off stump and going further away..this is absolutely no no in the basics or technically speaking language of cricket,,,Hear any commentary from Sunil Gavaskar and he will give a very good dressing to any player who plays such shots...so the basics have importance everywhere...lets us see what are the basics or fundamentals of buying a property>>

                  1. first and most imp...find your budget..
                  2. spread the budget by may be 15 %-20 % but not very substantial in case you are awed by a property...this extra spread can be covered through some help from friends/ parents/in laws
                  3. A RTM is always better but you may need to pay quite a big amount upfront..can be preferred if funds are not a problem..
                  4. the better option is for under construction if on a planned budget..
                  5.Best time to buy a RTM is one year or 6 months before possession .as the premium will shoot up immediately after possession or prior 1-2months.
                  6.best time to buy a new property is very initially if the builder and location is perfect and is in the budget or 6 months - 1 year later when the initial investor will be moving out ; you will be sure of the construction. and the premium may not be very high.
                  7. A bird in hand is better than two in the bush...go for one property at a time ...pay for two years minimum....and than start looking for the second if you are purely into investing..here the assumption is your first property is ripe and saleable .
                  8. it takes a minimum of 2-3 months even assuming you have a prime property which is at an advance stage of construction, even if the property is commanding good reputation in market. start contacting the brokers atleast 6 months b4 you want to dispose off your property..this will give you a feel of the market and your property will be in the brokers list ..remember brokers do have a cartel and they work in groups and know which property is out for sale.
                  9. A Good property can be sold easily in the initial stage ..
                  10.ideally one should keep a property for 2 years which can fetch decent returns unless you are a whole time property investor with lots of funds..
                  11. In delhi higher floors are not fetched while in bombay higher floor go for a premium..avoid the top floor as it wil not sell easily.
                  12...avoid heavy PLCs as it is tough to sell off your property with many PLCs if the market is weak. or even otherwise..unless the PLC has some high value (worth)
                  13. a 3 % discount are bare minimum from any broker..try to extract more...if the property is not selling fast but is good.
                  14. Avoid investing near Nallah, high tension lines , villages , grave yards etc..they will not be commanding premiums and are difficult to sell .
                  15. there is always a compromise between the premium property and the bad properties...avoid the two..the first because they will be selling at high rates and the second because they may not be completed...there is always risks in both the cases...the middle path is always good..for a common investor / end user.
                  16. Temples, hospitals , hotels, markets near by are a good sign for any property.

                  17. Looking for distress sell can be a trap also..BEWARE of the traps..high risk high gains.
                  18: a person who wants to sell off a property with full money in a week time can be termed as DISTRESS SELL.
                  19. while buying or selling a property one can go along with some senior male member of the family..
                  20: NRIs are more prone to the risks of property. for them is is better to develop a contact ( friend) who can tell important updates/ points of the property.
                  PS: these are general rules based on my own experience...Exceptions will be there and so will be difference of opinions..

                  .
                  Last edited December 2 2012, 09:09 PM.

                  Comment

                  • #19

                    #19

                    Re : Dummies guIde to purchase a property in GGN, Noida..elsewhere

                    Word of caution for first timers

                    Although I have written may important points, but i still feel buying property at today's price are laden with inherent risks.so my advice to all first timers will be to be careful and book some profits b4 going for other investment...today i was having talk with some people and the message out of the talk was traders in delhi have left their traditional business to do brokerage / investment etc in property...these are dangerous signals..another person confided that there are no buyers in delhi for properties at such higher prices..most of the rates are on paper and at times it becomes difficult to dispose off ...

                    therefore if u r sitting on profits and if its your first investment, than i think its better to book profits and reinvest..rather than keeping the first and also investing in another will be quite risky if the money invested has loan components or has been accrued by selling some other assets / property...

                    cheers

                    Comment

                    • #20

                      #20

                      Re : Dummies guIde to purchase a property in GGN, Noida..elsewhere

                      Formalities for selling

                      1. Spread the word among 4-5 good brokers ( good brokers are those who take interest in ur property , revert back to u , and have the means to negotiate and be on ur side with trust )
                      2. Stck to ur price - a buyer will normally seek a discount of 50 - 400 rs PSF when on the table with money .
                      3. be firm on ur price whatever, unless u are desperate.
                      4. ur desperation should never be visible to the buyer or broker..( a broker can switch sides without u ever knowing )
                      5. the meeting point can be a neutral venue ( gd restaurant ) or the brokers office..no need to keep it in ur house or the buyers.
                      6. if u r ok with price, take the token , and the first agreement will be signed .(read the agreement for something mischievous , although that does not happen if the broker is good..the agreement will be prepared by the broker and he will show it to both the parties for consent).
                      7. after the token money , the time frame is decided..normally 30- 45 days or even earlier / later subject to both parties consent and trust.
                      8. decide the black / white component.
                      9. u have all the power to decide...if u are not comfortable on any point, walk down , dont take money, dont sign agreement.
                      9. get the money as stipulated..when the substantial money is paid ( in the second transaction after the token money) , u will sign another agreement , which will be as per ur white component . the first agreement is for the total amount including black and white. normally black component is paid b4 the final settlement..
                      10. now both the parties are strongly binded...
                      11. collect the white money , on the final transaction, ( by a demand draft if possible) go to the bullder office, sign the transfer papers, only after collecting all ur money ( no cheque only DD) and to ur satisfaction.
                      12. dont sign papers if there is any vagueness or confusion or doubt or in alcohol / drunkedness.
                      13. take one of ur trusted friend / ralative with u for all money deals
                      best wishes
                      Last edited December 9 2012, 05:00 PM.

                      Comment

                      Have any questions or thoughts about this?
                      Working...
                      X