Some important tips one should keep in mind before buying re-sale property are:
1. Locality: Generally speaking, the demand differential prevails with specific places but when it comes to price increases, it should still be proportionate to its geographic positioning and may be related to proximity to roads, industries, business districts, and general living standards.
There is a price differential within the same complex for different properties, or even the same structure. Vastu compliant units in India have a premier on them. Similarly, property facing the East or the South receives greater prices than property facing the North and West. In urban settings, the users pay more for a view. For example, in Mumbai, the price per unit goes up as you go higher. If the house is sea-facing, the buyer has to fork out a hefty fee. In other cities not yet fully used to high-rises, the price is up to the sixth floor for floors. A premium vis-à-vis lower floors will not order higher floors. The property facing the pool or park is given a higher valuation.
These principles underpinned the concept of Preferred Location Charges (PLC) for new properties. PLC is arbitrary at the moment, and there are no fixed standards to it. There are developers in the complex who charge a PLC on each device which contradicts logic.
2. Area-wise Demand and Supply: The price of the property also depends on the amount of supply within a given region. Qualities like decent services, retail connectivity, business centers, and entertainment centers are typical to a locality. The number of units available for sale in the industry is still deciding the prevailing demand, however. If it’s a modern development path, the first investment usually comes at a fair price to get off the ground. When more developers launch projects, it is a demanding field and the prices begin to rise gradually, typically about 8-10% each year.
In an established locality, a developer can break the standard by starting a project that is richer in features and therefore commands a higher valuation. If there are a few ventures in a locality that demand a higher valuation, the base value is moved up. Developers often help developers to make money by checking the prices of projects that are already under development on a regular basis. Once this new value is released, brokers and underwriters offload their properties at a value higher than the original selling price but lower than the new selling price, both small and big investors. Therefore they are earning short-term gains.
During the development cycle, this cycle happens at least two to three times. End consumers join and purchase at prices that are at least 50 percent higher than the initial selling price at the end of the process. They do get to buy very close to the sale, though, with very little keeping time. If you are purchasing on a corridor where there are many projects, test pricing and various project requirements to get the best price. If there is more supply than demand in the secondary market, you have a greater chance of securing a competitive offer.
3. Builder/Developer: Check the track record of the contractor, his financial power, his ability to perform on schedule, the standard of the work, and the terms of payment, especially for a local contractor.