What Every Real Estate Investor Should Know

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Since the past few years, Kolkata and its surroundings are witnessing a boom in real estate development. The development of peripheral regions of Kolkata such as Howrah, New Town and Garia has provided investors with more options to buy properties.

Besides the pleasure of living in these properties, many see them as perfect investment opportunities. The high return in a relatively short span of time has attracted numerous investors in Kolkata.

Most investors usually look at location, price, floor plan and possession date of the project. Other equally important points to study are developer history, financial health and legal clearances.
Developer history: an Important Factor
The amenities and facilities of a project - attractive as they may be-- should not cloud a buyer's judgment. The reputation of the builder is an important factor. The buyer should always be informed about the previous projects constructed by the developer. A good way to gauge the performance of the builder is to compare the prices of the builder's completed projects with those of other real estate developers. If the prices for both sets are similar, then it is advisable to buy from the developer.

If the developer is relatively new, it is advisable to always do a thorough check- on the performance and delivery of other projects. The internet is a vast resource of information and this should be used to research the new developer. While this is a secondary form of research, a primary research should be done as well. The best sources of information are local brokers or other customers of the developer.
Legal clearances: a must for all real estate properties
Any real estate investment in Kolkata or another city must be backed by all legal clearances. There are many instances where buyers have faced serious legal issues due to inadequate approvals for the project. It is a necessity for anyone buying property to demand all clearances.
One quick and easy measure to ensure there are no legal problems with the property is to check on the number of financial institutes supporting the project. However, one must also seek legal opinion before investing in a property.

Payment break-up
There are varying costs involved in buying any property in Kolkata. While most advertisements focus on the cost per square foot, there are additional costs involved when it comes to parking spots, the floor and club membership fees.

Payment schemes are also extremely important. Most investors need to apply for a loan when buying a property. One should read all the terms and conditions carefully before agreeing on any deal. Similarly the terms and conditions for the handover of the property should be carefully understood.

Another important tip that must be remembered is to always take up a loan repayment option which does not burden the regular cash flow. A loan should never be taken with the expectation of cash flow increasing in the future. Loan should always be applied based on current cash flow and the prospect of it remaining the same for a long period of time. This is the best way to avoid overspending and adversely affecting the current financial scenario in the search of a perfect property.


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