When you are buying a house, the top two things you consider are usually the location and budget, however, equally important and often missed out is checking the credibility of the builder of your construction. The choice of builder is often the most important factor in determining the quality of your home. This is why a comprehensive background check of the builder is advised for the safety and security of your investment.
In this article, we take a look at how you can check for the genuineness of a housing project you are buying or considering.
Things To Consider Before Buying
There are various factors to ascertain before you finalise your house purchase. We have discussed them in detail below.
RERA Registration
As of 1st May 2017, it is compulsory to get a RERA registration under the Real Estate Act. All developers and promoters have to register with their respective State authorities to certify as credible builders. A RERA approved construction would ensure you do not face any issues with the delay in pre-booked projects, quality of your construction, and its pricing.
You can check for a RERA certification on the State’s RERA website for any construction that you are considering buying.
Builders’ Association
A builder with a good delivery record is always a better choice than to go with someone who doesn’t have any credibility attached to them in terms of construction. Experience matters. You can check your builder’s track record by finding out their past projects and checking whether they are a part of any industry associations, such as the Confederation of Real Estate Developers Association of India (CREDAI). This will add to their reputation and credibility.
Background Check
You can do independent online research to check if there is any negative news about the builder on any discussion forums or just in general. You can also go for word of mouth, as that is the easiest way to find out builder reputation.
Layout plan
It is important to check before buying that your potential property has all the necessary approvals from concerned authorities, an ISO 9000+ certificate or a Layout Approval certificate for that matter. This would ensure safety.
Appreciation Percentage
It is highly valuable to check the appreciation percentage that a builder has gotten on their past projects. This is a good evaluator in ascertaining the project demand in the market. This will also give you an idea about the future expectation of a project you are planning to invest in.
Compare Payment Schemes
Check the list of banks tied up with the project. If the project is tied up with some public sector banks like State Bank, then it is good to assume that the project has gone through rigorous due diligence. Next, you make sure to check for payment schemes offered by the builder, they are either construction linked plans or subvention schemes.
- Construction-linked plans: When the payment is made in phases by the buyer as per the construction progress.
- Subvention schemes: When the builder, buyer, and bank are in a tripartite agreement. Ten per cent is paid upfront by the buyer and the builder pays the interest cost till the subvention period ends. The buyer only starts paying the EMI after the subvention period ends. The subvention period can either end when the buyer finally possesses the house or after a certain fixed period.
Other basic factors to consider include checking the occupancy rates, builder ratings, financial stability, and of course the location and budget of your investment.
Joyville Homes
If you are looking for a reputed builder offering beautiful homes, then look no further than Joyville Homes by Shapoorji Pallonji. This is where dreams come true. Joyville Homes are made with resourceful thinking, a value-driven approach, an innovative mindset, and unparalleled experience garnered over the last 150 years.
The Affordable Housing Project by Joyville Homes in India –
