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Six steps to make an informed investment decision

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This report will help your residential clients deeply analyse their property need, weigh all options and seamlessly take them through the final possession.

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Six steps to make an informed investment decision

  1. 1. 1 I Colliers International Six Steps to Make an Informed Investment Decision on Residential Property STEP 1 Determine Your Property Need: End Use or Investment STEP 3 Due Diligence for the Shortlisted Projects STEP 2 Inspect and Evaluate Options and Prepare a Shortlist Purchase Approach for Investor Purchase Approach for End User Run a quick due diligence on the shortlisted projects including: • Approval and licenses i.e. commencement certificate for work, environmental clearance, approved building plans, allotment letter and development agreement; • List of banks for financing the project; • Quality of previously constructed projects by the same developer; • Developer track record in terms of total square feet developed, market feedback and project delays; • Status of land title with the developer; • Status in terms of whether it was purchased by the developer or he has the development rights; • Blueprints of all of the plans. • Decide on location, size, budget, amenities and timing. • Match property options with property needs. • Compare the shortlisted properties by jotting down pros and cons, the prices and other distinctive features. • Invest in newly launched project at early stages to reap benefits of early mover. • Act swiftly to make a decision and not miss out on good offers that are usually time bound. • Invest in emerging markets for long term returns. • Check / Track market trends across micro markets to make informed decisions. • Determine your expected ROI and exit once it has been achieved. • Don’t fall in love with the property in which you invest. Property transactions take time. • Don’t equate real estate to the stock market in terms of exiting. • Choose from ready to move in / under construction / newly launched projects depending on your reqiurements. For example, if you have an immediate requirement, go for completed properties. • Invest in a project where you can live; check the neighbourhood. • Understand the process and restriction in case you are buying property from sale proceed of another property.
  2. 2. STEP 6 Checklist for taking possessionSTEP 4 Financial Analysis STEP 5 Taking Your Requirements from Notion to Motion • Total Cost of the Property = Basic Cost + Other Charges + Statutory Charges + Brokerage Fees • Payment Plans- Down Payment / Flexi-Payment / Construction linked Plan / no EMI Plan • Loan Requirement and Interest Cost • Capital gain tax in case of buying property from the sale proceed of previously owned property Document Checklist: • Allotment Letter • Builder – Buyer Agreement • Payment Schedule • List of Amenities • Layout Plan of the Property • Copy of the Project’s Drawings • Receipts for all of Payments • Construction Updates • Possession Letter • NOC Certificates • Sale Deed • Occupation Certificate • Carpet / usable area of the Apartment; • Completion date; • Penalty clause in case of delay; • Lock in Period • Transfer Charges • In the event of non-completion of the project, understand the refund process and interest. Always check the following important terms and conditions: Do Analyse 1 2 3 4 5 Besides documents, the important things to check before taking possession are Amenities, Basic Infrastructure like Doors, Windows, Paint, Walls, Drainage, Leakage, Switches, Plugpoints and Safety Measures to ensure no major repair work will be required after taking possession. Disclaimer: This document has been prepared by Colliers International for general information only. Colliers International does not guarantee warrant or represent that the information contained in this document is correct. Any interested party should undertake their own enquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damage arising directly or indirectly there-from. For Residential Services, please contact: Poonam Mahtani National Director I email: poonam.mahtani@colliers.com Colliers International is committed to accelerating our clients success. We understand that real estate decisions directly impact every part of your business, and our mission is to help you make the right choices for your business. With more than 13,500 professionals in 482 offices across 62 countries worldwide, we use our wealth of market knowledge to help you achieve your goals. Visit us on www.colliers.com For Research related queries, please contact: Surabhi Arora MRICS Associate Director I email: surabhi.arora@colliers.com

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