Invest in Real Estate

Investment in Real Estate some general tips.

As the peoples of the world increasing rapidly , so accommodation problem is going deeper day by day . As a result real estate business demand increases highly at present world. so if you want to invest in Real estate for safe accommodation you need some general knowledge about it .

As follows:

Know about your Developers=>

First and foremost thing is know about your developer .ask first for their completed project and on going projects. Its better if you talk some of their client at present.

Visit the place=>

Visit the site before you take your decision , see the development work by yourself with own eyes.

Check the authority Approval=>

As the developer to provide you the approval for authority, some times it is seen that developers constructed more floor then their approval.

Ask for development schedule=>

Ask the developer their schedule of building, it will be easier to take your decision for investment.

Down payment or Installment=>

always in mind that before sign your deed of agreement ,not make any down payment. Ask for a draft Deed of agreement with their official offer. then let your developer know that ,you need some time to through draft the agreement. Never sign a blank creature and not forget to take money receipt.

Agreement=>

Take time or consult with some one expert , make sure of every term and condition, most importantly when sentences are long. as follows

Legal descriptions of the property=>Make sure it explains the location exactly, size , and right to the land and infructure.

Ownership of the purchaser=>

Please specify the ownership of the purchaser in the agreement.

Ownership of the developer=>

It should be clearly mentioned that developer is the sole ownership of the land /power of attorney holder ,of the said real estate with a full right and authority to sell or dispose or transfer the roads, open space and utility infructures in the building /city including the said apartment to the perchaser and that no other persons or authority whats ever any claim, right titles interest or lien or on Said real Estate.

Price=>

No where in the agreement it is allowed to escalate the for any future events.

Payment schedule =>

Negotiable dates considering your agreements , mind the payment delay comensation conditions.

Compensation for delay of Handover=>

Consider your bank loan and other losses . Be alart about your term grace period.

Management agreement=>

The principal of the agreement must be " The perchaser are the owner of the building and full authority to manage it .and all shorts of charges including utility and maintanance are the cost only and costs are verifiable.

Documents ( Parts of Agreement)=>

Include the layout plans structural Dsign , Spcification and Land Measurement approved by Government Authority.

Delivery or Handover Date =>

Hand over date of the apartment must be mentioned on the agreement clearly even after a grace period.

Refund =>

If surrendered by purchaser or canceled by Developer project is abandoned options for the refund of the amount paid by purchaser must be clearly mentioned in the Agreement ,along with specified penalty amount /percentage.

Compensation=>

Compensation of delay of handover / delay of payment by perchaser /Delay of refund by Developer should be specified in the agreement.

Be cautious about following conditions in any purchase agreement or document=):

1) Delay in payment beyond the due dates will cause penalty at rate of ( ) % per monthe on the amount of payment that delay.

2) Incase of surrender of allotment by puerchaser or cancalation of allotment by the developer due failure of  payment of installment by the purchaser or any other reasons ,the amount paid to the Developer shall be refunded after deducting ( ) % of total price.

3) If the completion period of the projects are affected by unavoidable circumstances like natural calamities , political disturbances ,non payment of installment in time by the purchaser , the purchaser will not be entitled to any compensation.

4) If for any reason beyond the control of the company .the project is abandoned , the company will refund the paid amount to the puschaser .

5) The purchaser has to take written permission from company before carrying out any modification work.

Bank Loan ============>

All banks provide loan for new apartment purchase or renovation of the apartmentns. the interest rate varies from Bank to Bank. Many banks provides loan upto 20 years the length of the loan period depends upon the age of applicants and capacity of payments and other factors.

Before taking decision for loan you must compare 2 or 3 banks about interest rate and hidden charges.

Sheikh Nazim Uddin Elias