Avoiding Misinformed Property Decisions
Jul 12, 2017 Home Trading Steps
Many times home buyers make decisions regarding their purchase based on incorrect calculations. Some people make decisions to buy a house under peer pressure or pressure from their families. They might not have calculated their own finances well before entering the property market. These decisions are majorly emotional. In addition to this, there are a number of other factors that lead to regretting the purchasing decision later on. It is important to be aware of factors. This can help one in looking at the larger picture and taking an informed decision.
One such factor is dissatisfaction with the builder. Delay in the delivery of the project is a major risk in this matter. There can also be problems like high maintenance charges or unnecessary taxes. The construction quality of the property might be another issue of dissatisfaction with the builder. The Real Estate (Regulation & Development) Act, 2016 has made it easier for the buyers to resolve these issues to some extent. Earlier, the consumers had to struggle with the system to put the builder to terms and get justice. This meant coming together of consumers who have suffered and pursuing a case against the builder. But now, consumers can access the authorities easily and get the mistakes rectified easily. Also, the new law ensures that the builders are kept under a scanner and such malpractices are checked in time. The buyers must be aware of these issues and invest with care. The builders who have good track records and are trusted should be approached.
In case of home loans, there might be issues of dissatisfaction with the lender. In such a situation, the customer has the option of switching to a different lender, but after paying a penalty. However, if the calculations prove that this decision would be beneficial, the consumer should make the switch despite the penalty. Many banks offer attractive rates of interest and can bring down the effective cost of the house. A number of private and public banks have recently reduced the rate of interest to 8.3 percent. Thus, one might consider switching to a different lender to avail better rates. However, making this switch very often does not send a good signal to the lenders and is not advisable.
Another reason to regret the purchasing decision can be the low rate of appreciation of the property. At the time of purchase, some buyers might have miscalculated that the price of the property will increase manifold due to its location or other factors. This might prove to be a misinformed choice later and might off-put the investor. In such cases, the investors need to look at the long term overview and assess the situation with caution. Any decision to dispose off the property or to keep it and wait for the market to go up should be studied carefully and an informed decision made accordingly.
Thus, a buyer entering the market must keep these factors in mind to make sure that they do not have to regret their decision later.
One such factor is dissatisfaction with the builder. Delay in the delivery of the project is a major risk in this matter. There can also be problems like high maintenance charges or unnecessary taxes. The construction quality of the property might be another issue of dissatisfaction with the builder. The Real Estate (Regulation & Development) Act, 2016 has made it easier for the buyers to resolve these issues to some extent. Earlier, the consumers had to struggle with the system to put the builder to terms and get justice. This meant coming together of consumers who have suffered and pursuing a case against the builder. But now, consumers can access the authorities easily and get the mistakes rectified easily. Also, the new law ensures that the builders are kept under a scanner and such malpractices are checked in time. The buyers must be aware of these issues and invest with care. The builders who have good track records and are trusted should be approached.
In case of home loans, there might be issues of dissatisfaction with the lender. In such a situation, the customer has the option of switching to a different lender, but after paying a penalty. However, if the calculations prove that this decision would be beneficial, the consumer should make the switch despite the penalty. Many banks offer attractive rates of interest and can bring down the effective cost of the house. A number of private and public banks have recently reduced the rate of interest to 8.3 percent. Thus, one might consider switching to a different lender to avail better rates. However, making this switch very often does not send a good signal to the lenders and is not advisable.
Another reason to regret the purchasing decision can be the low rate of appreciation of the property. At the time of purchase, some buyers might have miscalculated that the price of the property will increase manifold due to its location or other factors. This might prove to be a misinformed choice later and might off-put the investor. In such cases, the investors need to look at the long term overview and assess the situation with caution. Any decision to dispose off the property or to keep it and wait for the market to go up should be studied carefully and an informed decision made accordingly.
Thus, a buyer entering the market must keep these factors in mind to make sure that they do not have to regret their decision later.
Looking for property portal?
Related Articles
-
-
How to Judge Construction Quality of the Home
Apr 26, 2016 -
-
See comments (0)
Write a comment
