Investing in real estate can be a risky business. No one buys house for a month. It is a long term expensive arrangement that we’re dealing with. So how do we decide whether we’ve got the best deal or not?
First of all, do not hurry. Make a list of all do’s and don’ts. Consult people, if possible agents. Consult your family about what type of house they want and gradually narrow down to specific choices. Buying a house involves lots of commitments, and calculations, unanticipated expenditure. From painting to cleaning and setting up a home, it is a long, time consuming and tedious job. It is very difficult to move in and out of apartments frequently, so make sure that your choice is perfect in all aspects. When visualizing the picture of the house from office place or anywhere else for that matter, gives you incomparable pleasure.
MT Mohali has both ongoing and ready to move projects which gives the experience that one desires for. Semi-furnished flats are available at best rates that can save half of the hard work without compromising on the expenses. Situated at the best location that one can imagine, with a plethora of facilities around. MT Mohali’s projects Mona Paradise, Mona City and J90 gives the best service at best price.
As it is, the location, surroundings and safety of the apartment/ bungalow that one selects. It is an absolute necessity that should be checked and rechecked till we fix the contract. And finally, when design and aesthetics parts of the process are dealt with, let’s concentrate on business.
The price, payment schedule and paperwork should be clear for both sides. Also, when deciding on prices, which are THE most important part of the deal, one should make sure that he isn’t being trapped into Decoy Effect. Decoy Effect is something that we experience almost every day, but we never pay enough attention to understand that it is fooling us. Consider two goods, one large size and one small size. The consumer will purchase whichever size he actually wants at the given market price. But sometimes, to enhance sales, the manufacturers make an even ‘larger’ size of the same commodity, and fix its market price well above the price of the ‘large’ good, so that the consumers consider it profitable to buy the large-sized good at a ‘reasonable’ price. Many products, including real estate goods use this pricing strategy to enhance sales. Different versions of Apple iPod, different sizes of flats, suites and bungalows are quite understandable examples of decoys.
When you are deciding to buy a house, remember to do your homework well. Research the price-level going on in the market, scan websites, call up agents. Very often, the price that the owner sets for the building is not much greater than what its actual ‘well-deserved’ price should be. With a little negotiation, you can buy the apartment at the a genuine price. But sometimes the owners are not aware of the actual worth of their building and charge unrealistically sky-scraping prices in the beginning. But then, in India, everyone knows the power of ‘Theek Theek Lagaa Lo’. And try not to be too greedy. Or too miser, for that matter. You may lose a good home if you mess around with the prices a lot.
Often there are discounts. More often when there’s an excess of supply and less of demand: in the buyer’s market. More of supply compared to demand means prices will definitely be lower. Whereas, when there are a lot of buyers and only a few houses, they generally sell at the full price that is demanded. Whatever the condition is, the consumer’s goal is to buy the property at the lowest cost, and the producer’s goal is to sell the property at the highest price. As natural as it is, the market clears when both rational beings agree on one price. Think rationally and decide what would be a ‘fair’ price for the property you want.
Another case may be, that you wish to invest in real estate for higher returns in future. One word would clear everything: ‘Real returns’. People usually take into account the nominal returns and completely close their eyes for the inflation taking place in the economy. Though it is not very practical, rather necessary-to-consider type of an idea for short term transactions and contracts, but when you think of long term, you’d better keep account of the inflation and the market value of the property you are dealing with. Also, think of how you can use your money well. Consider various installment plans and link them with interest payments that you receive from a bank, or as rent. Learn to play with money, and you will automatically learn to handle it well. The stock indices are also very important and should be kept under constant observation. Considering the current time period, when in general, real estate prices are low, it is the time to buy the house you’ve been thinking of, or invest for the returns you wish to enjoy in the future. Because as a result of the decrease in supply of real estate products as a consequence of falling stock prices, the real estate prices will definitely go up in the future. Hence it is best to act now and buy the house you have been thinking of. There has already been a very major hike in real estate prices in the past. And it is a cyclic process. Every high growth period is followed by a period of low growth and vice versa. So it is better that we take into account these factors and invest out money well.