Planning to buy real estate? Well, it is time to look beyond price and amenities.

Today, buying a house is a social need which is considered an achievement by the standards of the society. Big houses at strategic locations with high-quality amenities serve as proof of a keenly-desired aspiration fulfilled. If you buy such a house at a rate which is cheaper than the prevalent market rates then it is an icing on the cake. On second thoughts, do these conditions ensure your peace of mind? Most probably, No.

Buying a house based on sentiments, price negotiations and hastily-arrived conclusions can result in disastrous consequences in the future, as house buying entails a large amount of money, time and effort. The brochure and sample flat is the first level of introduction of a client to the dream house. These brochures and sample flats prepared by the developer definitely offer some idea of what you are going to get. But solely relying on them can backfire.

House buyers suffer more as they ignore many issues at the time of house purchase. Two most important factors are legal due diligence and technical specification. On the legal front it is critical to understand the pro and cons of the project title and various preconditions set by authorities. On the technical aspect, one must consider aspects like population density and load on the infrastructure. Ease of maintenance, fire safety standards like a number of staircases, ventilation, and ease of access to fire exits also should be checked as a part of technical specification.

It is important to seek answers to questions that may seem basic. But such answers to such questions may help avert unintended consequences in the future. Just because a real estate project is registered with Real Estate Regulatory Authority (RERA), need not necessarily address these issues completely. In commercial asset class, most of the large corporates follow these practices while buying or taking property on lease but in case of an individual or small firms these factors are ignored.

At the real estate practice of Motilal Oswal Private Wealth Management, we intend to bring in the insights of experts on various aspects of the house-buying process. The idea is to promote knowledge-based decision making in real estate.

“The decision of buying a real estate must be based on subject knowledge than sentiments; it is important to know the nitty-gritty of things which would matter in future”.