Times Property By Sonal Modi, Area Manager- Maharashtra, HDFC Ltd - June, 2005

The home buying process starts with the identification of a need- "we need a new home". The need can arise for many reasons- a growing family needs more space, getting married/newly-married couple looking for their dream home, upgrade of your old home to move to a better/larger location/property, a pure investment for capital appreciation or rental income, a security for your children etc.

Whatever the reason for moving, there are many issues that you need to consider in the process. The process of short listing commences with determining a few locations that you would consider moving to. At this time of short listing the location, you should also determine the amount you are willing to invest in the property, how much space you require, what are the amenities and specifications you would like.

The price of the property is governed by a number of factors- these include the location of the property, who is the builder, what are the specifications and amenities offered. For any given budget, there is a trade off between location and size. Prime locations are more expensive, and therefore the same money will get you less square feet as compared to a less prime location. Factors to consider when looking at location include proximity to the work place, proximity to schools, hospitals, public transport, public amenities as determined by your own needs. 

The reputation of the builder is an important factor to consider. Checking of the track record, number of projects completed, quality of what has been provided in the past, complaints of past customers are all critical in determining who to purchase the property from. There are a number of costs that you can be saved off when you go to a reputed developer. 

You must evaluate the specifications that is the materials that have been used in detail. Proper materials used with good planning reduce long-term replacement costs. Proper thought should have been given to all materials. As an example, looking at the electricals of the building, things such as the kind of wires that are used- fire retardant wires are recommended, miniature circuit breakers of a well known brand, child-proof switches/plug points are excellent to provide extra safety for the children, electrical load provision from the MSEB should be adequate to run the appliances that you are planning to install in the apartment such as water heaters, microwave, oven, hair dryer, and other electrical appliances. In addition, it is essential that there are no joints in the concealed wires. This however, can only be left to the builder as it is impossible to check the same once the entire building wiring has been completed. Here again, a reputed builder will ensure that the proper norms for the wiring have been followed to ensure proper quality.

If you are looking to purchase a property for a security or investment, you need to ascertain whether you wish to derive a rental income from the property. There are some areas where rental of property is easier than others. On the other hand, if you are looking at capital appreciation, a property which has a potential for the neighborhood to be upgraded can lead to capital appreciation. It is important that you determine your objectives before you take the decision on where to invest your money.

Buying a property for most persons is the single largest purchase decision they make in their lives. In order to ensure that the investment is made in a well thought out manner, the customer must take the pains to educate themselves about the various aspects and ascertain that the money they are investing is in safe hands.