stop kidding us

Home Sweet Home.

Finally some good news has come our way. An atmosphere of stability and optimism has emerged post the announcement of our new Government.

We can see the effect in terms of the stock markets hitting the upper circuit twice in a day and creating new highs week on week.

However, when most first time buyers wonder whether to invest in a home at this point or not, the answer lies in the basics of investing.

Any financial institution or bank will tell you your eligibility of home loan on the basis of your income statement and tax records.

They may also guide you to find options for a suitable home in your budget.

But, one has to be aware of certain principles to be considered before investing ;

Buy when the prices are low, Hold when the prices are high.

Invest in easily (tradable) reputed project / builder.

Believe in getting the paperwork of your investment in order before investing.

Most of my colleagues complain that they never know when the prices are low and whether the TIMING of their investment is right.
Frankly, if anyone claims to know the lowest price of any form of investment (property, gold, stocks, etc.), he probably figures in the forbes list of billionaires or is taking you for a royal ride.

Therefore investment in property should be need based rather than deal based.
For most first time buyers, they get easily sucked up into fantastic last minute prices or fancy discounts offered by builders/brokers/agents.

Understand that you need to define your threshold in terms of the area of property you need, the location and the price range that your income allows.

If you are able to define your threshold in the variables mentioned above, you will be able to devise a threshold in terms of the price at which you should enter, in other words timing your purchase.

In the era of recession, investing in the right project or builder is probably more important than the price at which you enter.

Many reputed construction conglomerates have stalled projects over many years due to lack of funds. Gone are the days when one found tremendous advantage in booking flats at pre-construction or semi – construction stage.
Sometimes, the market prices of some projects actually drop after the completion.
Because you want to invest in a home which could possibly become your single largest purchase ever, you need to be prudent in making the right choice of the builder or explore the project in question.

A good way of knowing is to ask the builder/broker for references of other buyers/investors in the project.

Another way of knowing is to check other projects that have already been completed.
Tradability depends on factors like the location of the project, the layout of the flats, the amenities provided, the gentry etc.

My suggestion - Invest in ready to move in projects or near ready at best.


Always read the fine print.

I want to know;

( Indicative List )

The ratio of super built up area to the Carpet area of the flat
The payment plan if the project is not complete
The datewise commitment from plinth to all phases of the project
A copy of agreement to be checked by a solicitor.
A copy of approvals Commencement Certificate/Completion Certificate/Occupation Certificate
A copy of permission from the Electricity Board / Water department / Fire department.

Payment of Stamp duty and Registration of the document is mandatory.

If a bank loan is involved, it is advisable to get the knowledge of builder reputation from the bank and allow them access to complete details of the deal.


So you see, the stock market might have little or no effect on the decision to purchase your dream home.

Don’t believe your neighbourhood uncle who tells you the prices of all flats in the area are going to drop by 50% or the nukkad ka real estate agent offers you an A.C. free in each room if you buy the flat offered by him by the end of the day.