Comparing projects while making home buying decisions
What shall be at the forefront of one’s mind while choosing a project to buy a house is nothing short of an arduous task. This article helps one to take an optimum decision while purchasing a property.
An organized residential real estate provides for a hassle-free buying experience. Here the projects are developed by registered developers. The entire space is reasonably well-regulated and legally protected. On the other hand, the unorganized segment mainly consists of contractors who would build independent houses and builder floors. The organized market is relatively more transparent, information about the developer’s antecedents and the details regarding the prevailing and completed projects are freely available for everybody’s perusal. This information aids in faster and informed decision-making for prospective home buyers.
There are three broad classifications for projects:
- Construction status
- Developer size and popularity
- Type of housing unit
Defines project development in its entirety and time taken to complete the project. This is the most basic and important classification criteria. This will reflect the scale of project development and also estimates the time required for project completion. Here the comparison is mainly made with respect to similarly placed projects. On the basis of construction progress, there is a further categorization of projects:
Here the project development is fairly nascent. The development is in its initial stages, or the construction wouldn’t have taken off at all.
The category includes projects that are available for sale in the market. Here there is a decent amount of construction activity already done. But it requires some more time to witness a completed project. This kind of project is priced a bit higher in comparison to the ones that haven’t trickled down from the drawing board as yet.
Ready to Move
These are finished projects and are about to receive or already received Completion Certification (CC). At times, they would have also got the Occupancy Certificate (OC). In a nutshell, they are available for immediate possession and best suit the persons looking for end-use purposes. They are the least riskier class, the issues of delayed project completion don’t arise here. They are priced higher in comparison to others.
In response to the prevailing situation, developers have been receptive to changing demands and expectations. Some developers have made some necessary changes insofar as layouts and structural designs are concerned. Thus ensuring more personal space in the residence set-up and as well make way for observing social distancing norms. Some developers have also made it a point to provide for co-working spaces in the apartment complex.
Comparing developers track record
The quality of the project and strict conformity to approved plans are a function of a sense of professionalism ingrained with the developer’s firm. Hence, the popularity of the developers also matters substantially while making buying decisions. Further categorization is witnessed, insofar as quality of project developer is concerned.
Tier I Developers
The developers who fall under this category have the following characteristics:
- Pan-India presence.
- Is construed to be a reliable and trustworthy name in the market.
- They are known for providing quality projects consistently over the years.
- There are hardly any incidents of delays in project completion.
- Projects developed from these developers are relatively less risky for acquisition.
- They are most sought after in the market for their trustworthiness and reliability.
- The brand equity of these developers is kept tightly intact, by that virtue they demand a premium as supposed to similar projects by less-known developers.
Tier II developers
- Their presence is mainly confined to a small expanse. Mainly they are regional players.
- They possess a decent reputation in the market.
- The purchaser will carry relatively less risk while acquiring a property.
- Construction quality and delivery timelines are mostly adhered to.
- Their financial strength is at times questionable in a not so favorable market.
Tier III Developers
- They are mainly local players.
- They are mostly unknown, they hardly have any track record to boast about.
- New developers in the fray also fall into this category.
- Purchasers will carry a relatively high risk in terms of construction quality and on-time delivery.
- They hardly give attention to the brand value of the firm.
- There is a high likelihood that these developers face financial troubles in difficult times.
Prospects of furnished apartments
Along with the amenities, many developers will also offer fittings and furnishings as part of value addition.
These apartments are bare bones. They are provided with a bare minimum structure. But there will be some basic fitment like lighting and other related provisions. Furnishing is a costly affair, hence most developers will refrain from providing furnishing as part of the project offers. Thus apartments with minimum or no fittings and furnishings are bound to cost less. A large chunk of affordable homes is most likely to be unfurnished, to keep the prices low and affordable.
These apartments will have some fit-outs, like modular kitchen, sanitary ware, flooring with granite or marble stones, and attractive fall ceiling. Mid-segment residential real estate is mostly semi-furnished dwellings. However, there will be a difference in terms of what different developers will provide as part of a furnishing package. It is advisable for the buyers to do some research on the cost that would be incurred if they got the furnishing done by themselves. And as well estimate the net cost of the project for arriving at a fair value.
A substantial portion of the fit-outs will be provided by the developers. Some developers will also provide few furniture, fixtures, flooring, and roof work as part of full-fledged furnishing. These apartments are truly ready to move in, in a manner of speaking. These apartments come handy for dual-income households, for whom time is a luxury and are bound by professional commitments. The prospective dwellers are not burdened by the necessity to make some improvements for a comfortable dwelling. Fully-furnished apartments are mostly part of premium and comfy residential projects. These projects are mainly developed by tier I developers who are known for trustworthiness and reliability.
It is advisable for the purchaser to ascertain the theme that underlies the furnishings provided. These projects are placed high in terms of pricing. Mostly, the theme that runs common across the fit-outs is thoroughly researched to please the elitist instincts. The brands associated with the fitouts shall also be part of comparison metrics to drill down on the fair value of the project. Moreover, it is a hassle-laden activity to look for suitable furnitures and fitouts. It even requires a lot of efforts and time to put together a fully furnished apartment. Thus, many people opting for luxury apartments have been showing an inclination for fully furnished one’s.
Prices, Location and Amenities
Usually prices of apartment units are defined in terms of price-per-square feet. There are multi-layered cost structures involved in deciding the net cost of the apartment unit. There will be one-time charges like parking charges and club charges, that will have to be borne by the buyer and will have to be paid upfront. There will be recurring charges like common area maintenance and power back-up that will have to be paid on a monthly basis by the buyer. A buyer shall decipher all the possible costs associated with the concerned apartment to arrive at the net cost of acquisition.
Layout plans and living conditions
Here the requirements of the buyer in terms of bigger bedrooms, narrow kitchens and the necessity of store rooms and other specifics alike shall help decide over the suitable layouts being offered. Other ancillary amenities, yet significant are the availability of number of balconies, views around and most importantly the preference for main door facing. It is advisable to opt for projects which provide more open spaces and allow for observing social distancing.
The kind of neighborhood matters substantially while choosing an appropriate project for dwelling. The projects which are placed around popular markets, public transportation like metro rails, expansive parks, recreational centers and commercial and office spaces shall be given more priority over the one’s that are placed alongside sewage drains and unauthorised construction. Closeness to main roads and the condition of these roads matters a great deal for the ones who ought to travel on a daily basis. The distance to markets and schools will impact the daily travel time and shall be considered while deciding on a suitable project to acquire.
Amenities; Quality and Size offered
Nowadays, many developers have been offering a good number of amenities to entice the buyers. But as a buyer, one shall tread cautiously and figure out the amenities that are essential for them are provided. Some amenities being provided may be novel, but one shall ascertain whether that adds any value.
The buyer shall also focus on the size of the amenities provided. For example, a swimming pool, badminton court, party hall and club house are sufficient enough to accommodate the dwellers in the apartment complex. Bigger the amenities better it is for its uncluttered utility. Especially, in times where social distancing is a norm.
Availability of critical services like Pre-School/Nursery, Medical Facility, Retail Services within the Apartment Complex
It is highly appreciable, if the developer could provide for critical services like pre-school, medical facility and retail services within the apartment complex. It helps dwellers save their precious time in availing such critical services. Moreso, in the midst of pandemic it has become, of utmost necessity to have the aforementioned services in as much close vicinity as possible.
Advanced security features
Security of the residences are highly valued. There is no scope for any compromises whatsoever in this regard. It is natural for the premium projects to have more security contours over mid-segment and affordable projects. It is for the buyers to explicitly come to terms insofar as security requirements they are vouching for their family. This is a critical component insofar as choosing the suitable project to buy.
Amenities and features related to privacy is mainly a feature of premium and high-end luxury projects. Where the dwellers will nudge the developers to provide for necessary infrastructure that will instill a sense of privacy and associated comfort. The features mainly include, provisioning a limited number of apartments in a floor, making way for private lifts to each apartment and facilities alike.
Facing Side Of The Apartment
The placement of apartments on each floor of the building is important to figure out the quantum of sunlight and ventilation available for each apartment unit. It is advisable to give less priority for projects whose buildings are placed close to each other and share a common wall. With less sunlight and ventilation, dwellers health and wellbeing is adversely affected.