Tips On De-Stressing The Process Of Home Purchase

Kishor Pate 2Kishor Pate, CMD – Amit Enterprises Housing Ltd.

What are some of the most difficult and emotionally stressful experiences in any person’s life? We can easily list the top four:

• The death of a loved one.

• Breakup of a marriage

• Change of jobs

• Buying a home

Does the last point really belong in this list? Actually, it does. Anyone who has ever been through the process of buying a home will agree that there is a lot of insecurity involved in such an operation.

People ask themselves a lot of questions when buying a house:

• “Are we doing the right thing?”

• “Is this the right time?”

• “Is this the right area/neighbourhood/flat? I liked the previous one better.”

We must also not forget about the stress involved in moving to a new location. After all, one is leaving familiar surroundings and neighbours behind for good.

Simultaneously, it often becomes necessary to get acclimatized to a new area where everyone is a stranger. Finally, the expenses involved in buying a home are easily the biggest financial responsibility any of us will ever shoulder.

As a matter of fact, it is not just the process of buying a new home that can be stressful. Even leaving the old self-owned home behind can take an emotional toll. The questions we tend to ask ourselves are:

• “Will the new owners take care of this home which we lived in and cherished for so long?”

• “Will the old neighbours react well to them, and will they be good long-term neighbours?”

Of course, these last-mentioned factors are not ones over which we have any control, but this does not reduce the depression or worry. If anything, our helplessness increases them.

home purchase

What we do have control over is preparing ourselves for our new home. When the time finally comes to sell your old home and buy a new one, you obviously have to face the situation squarely and proceed. But the experience of buying a home need not be as stressful as it often is.

Planning the process carefully gives you a psychological edge, removing a lot of the strangeness and frustration. Such planning makes sense in two other significant respects:

• Since buying a home will probably be the most expensive purchase you will ever make, being financially prepared for all the costs involved reduces the chances of unforeseen shocks.

• It is not something most people do often, so there are invariably stages at which we are caught short-footed for lack of proper planning.

The process of finding and ultimately purchasing a new home should be based on planning and patience. It is alright to buy clothes, toys and other inexpensive things on impulse – but buying a home on impulse invariably spells disaster.

Conducting a carefully organized market survey can result in considerable savings, both in matters of finance and heartache. You can contact a real estate agent, place your requirements and budget before him, and allow him to conduct the search.

You can (and should) actively assist him in this, but be open to all options that come your way and do not make impulsive decisions. New homes should be bought with the head and not the heart.

Another aspect of effective home buying is considering all the expenses involved – not just the price of the new residence. There will be a lot of extra costs to consider – down-payment, stamp duty and registration charges, brokerage, electricity meter charges, legal costs, packing and moving, housing loan EMIs (if you have taken a housing loan), etc.

Preparing for all expenses gives you a clearer idea of what you are doing, what you can genuinely afford, and in which areas you may have to restrict spending money for a while after the home is bought.

All things considered, proper planning will put you more in control of the situation, making the stress of home buying easier to handle.

Image courtesy of David Castillo Dominici / FreeDigitalPhotos.net.

Doing The Paperwork On Your Property Purchase

Kishor Pate 2Kishor Pate, CMD – Amit Enterprises Housing Ltd.

For the purchase or lease of real estate for self-occupation as a home or commercial premises, or as an investment, various factors need to be considered beyond the price and location.

In the case of properties in new projects by reputed developers, there is no reason to be too stressed about this. However, it can and often does become necessary while purchasing a resale property. One of the most important aspects to verify is the title of such a property.

The title verification process should actually begin even before an actual check of documents. For instance, if a person or entity offers a property at a rate which is below the going market value, it is definitely a signal for caution.

Owners of property with complicated or defective titles will attempt to pressurize interested parties to buy the asset at short notice by offering a very low price as enticement.

In all property transactions, it is essential to subject all related documents to rigorous scrutiny and verification by a qualified expert in order to ensure that the property has a clear and marketable title.

To begin with, a prospective investor needs to establish whether the property on offer is leasehold or freehold, and whether it is fully or jointly owned. Next, the documents creating interest in the property – namely the title papers – must be reviewed.

Depending on the nature of the property or proposed transaction, these include the sale deed, lease deed, conveyance, development agreement and the documents establishing the chronological chain or ownership. The primary intention behind this search is to establish how the owner acquired the property and what kind of rights he or she has over it.

Other documents to be checked are the property card (if available), the 7/12 extract and the Index II. Further, a prospective investor needs to establish whether all the above documents are properly registered in government records, along with any encumbrances such as mortgage or pending litigation.

title certificateHow A Title Search Is Conducted

An advocate issues a Title Certificate after conducting a search on the title of the property that is intended for purchase. This search will encompass the chain of sale/conveyance agreement, property card, 7/12 extract, Index II and records in the sub registrar’s office. The title certificate states that the property is unencumbered and has a clear, marketable title.

Also to be included in a thorough title search are aspects indicating ‘right of adverse possession’, which means that any person physically holding the property without dispute from the true owner can claim the right of ownership. All this considered, it is advisable to conduct a 30-year title search, or at least a 12-year search.

Public Notice

Though it is not mandatory, there are sometimes reasons for doubt about a resale property or a piece of land with a long history of ownership. In such cases, the intending purchaser or his advocate often issues public notices in newspaper.

The practice is to issue two public notices – one in English and the other in the local language of the state – stating that the purchaser or his client has agreed to purchase or negotiate for the purchase of a property from a named vendor.

This invites counter-claims in the form of mortgage, charge, lease, lien, easement, gift, trust, etc. against the property to be notified to the buyer or his advocate within a specified time (normally 14 days) with supporting documents.

However, it must be noted that merely giving public notice and not receiving claims from any persons will not bind those who may be real claimant if they were not aware of the public notice. In case of dispute, such public notice will support the buyer’s contention that he is a bona fide purchaser for value without notice of such claim.

India’s Changing Luxury Homes Landscape

Kishor Pate 2Kishor Pate, CMD – Amit Enterprises Housing Ltd.

For a country which was in the past largely referred to in context with high poverty levels, India has come a long way by emerging as a resilient market for luxury housing.

Of course, this is not a uniform phenomenon, and the demand for luxury housing in India varies according to cities. Even the definition of ‘luxury’ changes as we look into various parts of the country.

For example, a two-bedroom apartment in a central location in Mumbai, Pune, Bangalore or Gurgaon is often sold and bought as a luxury unit simply because of the profile of the location.

As such, inherently valuable locations such as Cuffe Parade, Worli and Lower Parel in Mumbai and Sahakarnagar, Bund Garden Road, Boat Club Road, Kalyani Nagar and Koregaon Park in Pune are seen as luxury locations. This has some merit, but is by no means all that there is to luxury housing in India.

A more precise definition of luxury housing in India is housing which offers opulent living spaces and ultra-modern luxurious amenities. Such projects may or may not be centrally located.

In fact, such luxury projects can offer a more evolved luxury experience, since developers do not have to invest in cost-intensive land and can concentrate on supplying luxurious experience to buyers.

The most responsive markets for luxury housing in India are Mumbai, Pune, Bangalore, Delhi, Gurgaon and to a certain extent Chennai. This is because these cities see a lot of wealth creation thanks to their economic fundamentals.

However, it is not only the wealth creation in these cities which is driving the luxury homes market in India. The evolving mindsets of the buyers emanating from these cities, is also changing the shape and specifications that define the term ‘luxury homes.

The concept of luxury has definitely changed dramatically over the years, and this holds true for luxury homes as well. Previously, the demand for large, well-appointed homes came primarily from ‘old money’ – that is, families which have had amassed wealth over several generations, either through business operations, investments or inheritances.

Arcadia Entrance Lounge small

The configuration of choice for such families was bungalows built on family-owned land and embellished with various luxurious amenities. Such homes existed in these families for decades, and rarely reflected the changing times.

Today, the ranks of HNIs in India do not include only such families. The country’s IT and manufacturing boom has brought wealth generated by high-paid jobs and new business enterprises into the picture, as well. The average age of luxury home buyers is now between 35 to 42, and the requirements that such individuals have in terms of luxury housing has also changed.

While there is still a focus on spacious living, there is an increased accent on ‘smart home’ accouterments, high-end common amenities and technologically evolved security. These were certainly not factors which went into the definition of luxury living a couple of decades ago.

Today’s buyers of luxury homes are highly aspirational and, more importantly, tech-savvy. This means that they are able to put to use their knowledge of IT technology to increase their families’ lifestyle quotients.

About The Author:

As CMD of Amit Enterprises Housing Limited, Kishor Pate is the driving force behind one of the country’s most successful real estate development firms. He is a well-known and respected personality in real estate circles.