Beware of defects in property deals

Mumbai: Having a tough time purchasing property? Our experts help you to get the terms cleared and make the job easier for you.

Q: I am currently facing a problem on purchasing the right house, had shortlisted a few, but problems arise during negotiation. Every owner would quote a price with a premium above the market price. Although that is something I would not want to pay.

Please let me know the different points on which I need to first discuss with the owner so that I can decide whether the price is right or I need to negotiate?

The price of the property is always decided on by prevailing market forces.

The points to look for are defects of any kind in the property, which might cause the seller to wish to sell it in a hurry. Such defects can be inherent in the title, in the property’s location or construction, lack of earthquake proofing etc. Also check for non-availability of Occupation Certificate.

Q: My name is Lavin and I want to buy house in Indore. Where do you think I should buy, if my budget is nearly about Rs 25 lakhs and I want house in a good colony where Sindhi cast people should be located. I also want to ask that what is future of property rates in Indore? Will they increase or decrease?

The returns on the residential investments in Indore are 5-6.5 per cent. Residential colonies where individuals buy plots of land and construction their bungalows are on an upbeat.

There are bungalows on offer at Bicholi, while places near the newly constructed Bombay Hospital are evolving as the next commercial-cum-residential destination for small-sized properties.

Bicholi Mardana, Bicholi Hapsi and Nipania Road are the other real estate hot spots. You will find a suitable property in any of these areas.

Q: I am working in merchant navy and maintaining NRI status. I have booked a flat in Thane in January 2006 and have paid almost 70 per cent of the cost of flat as demanded by builder on regular basis since January 2006 till date.

All payments are by cheque and I have not taken any loan. Please advise me if I have to pay stamp duty and complete registration formalities now or can I wait till Builder is ready to deliver the flat (around Dec 2007)?

You can enter into an agreement and have it stamped and registered now. The present time would be more appropriate than waiting until the project is completed and the flat in question is handed over to you.

Q: Sir / Madam, I am interested to purchase a three-bedrooms flat (society flat) in nearby Rohini area (North Delhi).

I have a budget of around Rs 30 lakhs to Rs 35 lakhs. Kindly advise. Also please let me know the property trend in North Delhi area in near future.

Rohini is the capital's largest residential colony. A two-bedroom flat is going for an affordable Rs 15-20 lakh right now. You can easily obtain a 3BHK there, well within your budget. Rates in North Delhi are steady.

The highest range between Rs 3000-5500 square feet in areas like Kamla Nagar, Rup Nagar and Shakti Nagar and the lowest between Rs 2500-3000square feet in areas like Azzadpur, Andhe Maghal and Band Stand Area Extension (BSA).

Q I have booked 1 flat of 3 bedrooms approx 1705 square feet at Unitech Horizon, Greater Noida. What is the future scope of price appreciation and should I hold it for another five years or more to get better returns. For purchasing this flat, I have sold my long-term old shares of Blue chip companies.

Prices in Noida, Greater Noida and Gurgaon have deflated by 40-45 per cent because of oversupply. It is presently a buyer’s market in these areas. Unitech Horizon is definitely a prestigious project and property there should fetch you a healthy price, but it is wiser to hold off selling for at least a few years.

The authors are Shobhit Agarwal, National Head - Investment Services and Deepak Sankhye Manager - Investment Services Trammell Crow Meghraj Property Consultants.