By Soniya Gaonkar on Jun 14, 2021 4:29:32 PM
Until a couple of decades ago, home buying was considered the most significant investment of an individual’s life and confined to only mid-aged people, who had some savings in their kitty and could afford to buy a home. However, the advent of IT in Pune and the emergence of several new and remunerative career options augmented the spending capacity of people, thus giving rise to another category of home buyers – the young ones!
Most of these home buyers from Pune are less than 30 years of age, and therefore curious, energetic, excited, and enthusiastic about their first home and the buying experience preceding it.
This new generation of young investors has easy access to the internet, and hence many do their homework well before they meet the developer. However, some FAQs require specific expert consultation. Let us answer eight such FAQs through this blog.
8 Frequently Asked Questions Asked by New Home Buyers in Pune and their Answers
As mentioned above, the young generation of homebuyers in Pune is more curious than their predecessors. They trust the developer but leverage their right to know everything about the product they are about to buy.
As a result, they come up with thousands of unique questions. However, most of them are case-specific, and anyways, discussing all of them isn’t practically feasible. So, here are eight FAQs asked by new young home buyers in Pune.
1. What are the development prospects of the area and the surrounding vicinities?
One of the most significant concerns for young homebuyers is the development prospects in and around the area they are about to buy a home. As youngsters, they look forward to developments relating to IT parks, industrial development, malls, theaters, other residential areas, connectivity (such as metro, access to highways, etc.).
The developers must know about the prospects, and buyers expect them to give them a clear picture to help them make an informed investment. For instance, people investing in Hinjewadi or adjoining areas such as Wakad, etc., enquire about upcoming IT parks, business centers, nearby projects, metro accessibility, etc.
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2. What is the resale potential of the property?
Seldom does the young generation think about living in the same home lifelong? They tend to be quick decision-makers, and the more money-minded set of people thinks about optimizing their investment returns in the fastest manner possible. As a result, they ask about the resale potential of the property they will be buying.
Of course, time has its unique impact on the appreciation rate of properties in a particular area. However, other factors that drive the resale potential of or appreciation on a particular property include the development of employment infrastructure, accessibility, entertainment avenues, etc.
Again, the developer is expected to give an honest approximate rate of appreciation in percentage, or in simpler words, calculate the amount of money that the buyer might earn after a few years after selling the property.
3. What is carpet area, built-up area, and super built-up area?
This is a technical concern that almost every young buyer asks. A lot of them have already come across terms such as carpet area, built-up area while accompanying their parents to the developer’s office in the past. However, now that they are in the driving seat, they prefer knowing these terms. So here’s a simple one-liner description.
- Carpet Area: The area of an apartment or building not inclusive of the area of walls is termed carpet area. In other words, it is the usable area of the home.
- Built-Up Area: The area of the walls, including the balcony, calculated along with the carpet area, is termed built-up area.
- Super Built-Up Area: The built-up area, along with the area under common spaces such as stairs, garden, lobby, lifts, swimming pool, etc., is called a super built-up area.
4. What should I do, invest in this property, or stay here?
The answer to this question is case-specific and depends on a range of factors such as the buyer’s objective of buying the home, whether the existing house is owned or rented, the area in which he or she is currently staying, the prospects of the area, the rent potential, etc. Hence, the answer requires a detailed review of the buyer’s situation.
For instance, someone working in Hinjewadi, looking forward to buying a home in Hinjewadi or Wakad, and currently staying in Shivaji Nagar in a rented house, the most obvious answer is staying in Hinjewadi.
However, suppose the same buyer owns a home in the centrally-located area of Shivaji Nagar. In that case, the developer might recommend investing in the property and renting it, provided commuting such a long distance isn’t a problem, and after considering after aspects.
5. What is the rent earning potential of this property?
Many homebuyers, especially those investing in under-construction properties, are concerned about the rent earning potential of a particular property.
Many, as mentioned earlier, are commercial thinkers and look forward to optimizing returns through rent earnings (thus creating an additional source of income, especially amidst the current uncertainties and financial vulnerabilities) and later earn a significant amount against property appreciation.
Like appreciation, the rent earning potential of a particular property also depends on the present infrastructure and the future one. Therefore, the developer must have a detailed rent potential calculation and is expected to give a ballpark estimate to help the home buyer get an understanding of the income that he may generate after investing.
6. Will I have to pay GST on the home I am about to buy? If yes, how much is it?
GST is a significant factor adding up to the overall cost of the property. As a result, many young home buyers, especially those tight on the budget, inquire about the GST factor involved in the property. In simple terms, it is
- Under-construction property
a. Agreement value under INR 45 lakh- 1% GST
b. Agreement value above INR 45 lakh - 5% GST
- Ready Possession Flat
7. Is the project RERA registered? What benefits does RERA give me as a home buyer?
Usually, the RERA number is mentioned on the prospectus, hoarding, and on the website of a particular project. However, some young buyers still inquire whether the project is RERA registered, and a few also insist on looking at those documents. Although yes, these documents are verified by the bank with which the buyer applies for a loan.
Apart from the above, some buyers are also keen on knowing the benefits they are entitled to as a homebuyer. Some of the benefits include,
- Adherence to RERA rules and regulations that protect them from various concerns (for instance, possession delays, etc.) that were otherwise quite a common problem
- Increased accountability in terms of fund investments
- High transparency and real-time insights concerning the property’s updates, reports, delay intimations, etc.
For more information, consider reading MahaRERA Act: RERA Benefits for Home Buyers and Builders in Maharashtra
8. Under construction property and ready possession – which one is better?
This is another critical concern that confronts young home buyers. As per industry professionals, a lot of young home buyers prefer buying a ready-possession home. However, some aren’t sorted or clear with their buying decisions.
As a result, they face the dilemma of buying an under-construction property or a ready-possession home. Of course, the answer to this question is subjective. It requires developers and the buyer to consider a range of personal and financial factors to make the most appropriate and aligned decision.
As a young buyer, if you want to know whether you should buy an under-construction property or ready possession home, reading Under Construction Projects Vs. Ready to Move Schemes – 5 Things to Consider can prove helpful.
Want to Buy a Home in Pune? Have Questions About it? Consult and Buy the Best Suiting Property with Kohinoor Group
Kohinoor is one of the leading construction groups in Pune. As a part of its focus on delivering customer satisfaction, Kohinoor’s consultants answer each of their prospect’s questions relating to the properties they look forward to buying.
If you, too, are a young, energetic, and enthusiastic buyer wanting to buy the best property in Hinjewadi, Kondhwa, Tathawade, Pimpri, etc., connect with Kohinoor’s consultants and buy the best home in Pune.
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