Title: Ready Reckoner for Home Buyers
1Nimesh Bhandari, Chief Marketing Officer
2Home Buying A Lifetime Decision!
- Home Buying is one of the most complex buying you
will undergo in your life - Typical Home Buying cycle may span from 1 year to
6 months - Home Buying will have both short-term and
long-term implications so proper planning
guidance is must - Keep a buffer for unknowns before making a final
decision school change, job change, location
change
3Define your Requirement
- Before you start your house hunt define your
requirement very clearly - Investment or Stay
- Ready-to-move-in or Under Construction
- Required Configuration (2bhk/3 bhk)
- Budget Upper cap Lower Cap
- Your taste Amenities, floor plan, fixtures
- Use your best case judgment in case the long-term
situation is not clear - Investment or Stay Consideration of
appreciation of property/area paramount - Pre-Approve your loan. SBI Always the best
4Identify your preferred location
- Identify the boundary of preference
- Area close/equidistant from office and school
- Self sufficient area
- Proximity to Railways, Airport
- High growth area potential of large office
spaces - Identify 2-3 Alternative areas
- Future benefit of stay
- Upcoming school / office spaces
5Ready to move-in vs. Under Construction!
- Buying from Builder vs. person
- Buying from builder less hassle free (legally)
- Factor in delay in possession from builder
- Current Free Cash Flow vs. Future Cash Flows
- Higher initial amount (on top of loan)
- Additional immediate expenses registry,
furnishing - Do the Math
- Rent paid vs. Interest differential as loan
disbursement immediate in ready-to-move-in - Factor in delay in possession
- Legal Expenses Higher in Ready-to-move-in
6Create Exhaustive Pipeline
- Do extensive Online Research
- Typical property prices in locality
- New launches in locality
- Compare properties online
- Select properties which matches your criteria
- Project / Builder Check
- Call Builder - Get more information about price,
additional charges, loanability - Look for builder reviews / past project
deliveries online - Eliminate properties which do not meet your
criteria
7Be Ready for Site Visit
- Fix an appointment
- Call builders and fix an appointment for site
visit - Have all decision makers ( wife etc.) be part of
site visit - At the site- Check for construction quality,
pace of work - Sample flat Be wary of interiors. Double check
what all you would get as part of completed flat - Check for Open spaces, green area, efficiency of
flat - Check for all additional charges. Negotiate on
rate - Survey the surrounding area nearby schools,
market, building - Eliminate flats which do not fit in your budget
and requirement
8Create your Kiss list
- Have a list of 4-5 can-buy projects
- Visit past projects from these builders to check
construction quality - Estimate growth/investment potential of all
projects - Compromise vs Comfort Think about the long-term
impacts of compromising? - Price vs Appreciation. Think Long-term
- Do a hygiene check of preferred properties
- Sanctioned / Bank Approval
- Should not be near railway line, sewage etc.
- Approach road if not good, plan in place
9Bank Loan Delve into details!
- Bank Loan
- SBI Low Interest vs. speed.
- Preferably go with banks who have approved
property - Branch of loan issuance some states have
additional stamp duty ( Noida vs. Delhi) - Loan always floating (x PLR)
- Negotiate on rates (x). Talk to branch manager
- Go for EMI with principal deduction (even at part
disbursement) - Opt for loan insurance
- No penalty on early repayment
- Term lesser the better
10Zero in your Dream House!
- Look at the payment schedule
- Construction linked preferable
- Subvention scheme - If you think builder can
deliver on time. Do the math! - Zero in your dream house
- Analyze and summarize
- Compare on Comfort, Appreciation Potential,
Construction quality, Location - Weigh and Give marks
- Believe in your Gut!
- If ready-to-move-in, hire a lawyer and get
documents checked
11Final Deal!
- Final negotiation
- Car parking -Take additional. Price negotiation
- Lumpsum discount on booking. PLC Waiver
- Legal Check
- Read the Builder buyer agreement carefully
- Read Bank loan agreement clearly
- Hire a lawyer must for secondary purchase
- Go through terms related to Club charges,
maintenance charges, generator charges, car
parking - Read through flat specifications and dimensions
- Penalty clause of builder on delayed delivery
- Book your flat and have a peaceful sleep!
12Document Check Secondary Purchase!
- NOCs
- NOC by bank if current owner has taken a loan
- Loan closure certificate from another bank if
loan was transferred - NOC and no-dues from the RWA
- NOC from Builder of no-dues
- All previous receipts paid to Builder
- Property Registration document/ Deed
- Letter of Allotment by Builder to seller
- Id proof of seller, PAN Card of Seller
13Negotiating a Secondary Purchase
- Know the current rate in the area
- Understand the reason of selling of seller
- Clarify all additional expenses apart from house
price legal, registry, NOC etc. - Have clear understanding on what you will bear
and what the seller will bear - Inspect the flat and evaluate the cost of
fixtures, cost of refurbishing the house - Have everything documented. Have a witness before
you give initial cheque. - Get your buyer-seller agreement vetted by lawyer
14Dos and Dont - Interiors!
- Do the furnishing, electrical, plumbing first and
then go for paint - Furnishing Dont use inferior plywood in order
to save cost - Contracting better if you have no prior
experience Give contract to plywood supplier - Split AC Arrangement Call for an expert
- Inspect and make all necessary arrangements for
appliances in next 1 year - If termite treatment to be done do before
paintwork - Paint Get putty done for long last if walls are
not smooth - Tile work Not every expensive and gives
additional beaty to your house - Bathrooms make sure that tiles in bathrooms are
skid free, For shower cubicle use toughened glass
15About RealtyCompass
- Realtycompass.com is the India's first ever
property search engine facilitating consumers to
search each and every project in their city. It
is present across 5 cities in India, and expects
to launch in 10 cities in next 6
months.RealtyCompass is a team of 25 bright
people comprising of people from premier
institutes (IIT, IIM, CA). We are rapidly
expanding and looking for young talent. - Built on a simple idea of providing consumers
with accurate and exhaustive project listings in
the city, RealtyCompass is a unique offering for
both consumers and builders.
16The Proposition
Consumers
A Comprehensive Platform for consumer to search
every project in his city and buy a right home _at_
right price by reaching out to builders
Builders
A pay-per performance platform for every builder
to reach out to his target audience with very
high conversion ratios
Indias first ever Property Search Engine
17The Current Market Gap
- Problems faced by home buyer
- Unavailability of single platform with exhaustive
list of every new project - Outdated information leading to high search cost
for consumers - Elimination of projects based on information
available online - Problems faced by builder
- High cost of acquisition of leads
- Absence of pay-per-performance marketing medium
No efficient marketplace to address the needs of
consumers and builders
18The Solution
- Create a Market-place where the information is
accurate and current - Dis-intermediate brokers, by creating a connect
between builders and brokers - Simplify Online House Search by capturing
value-added data of projects/builders past
projects, common area, construction quality - Help Builders reach to right audience by creating
a transparent marketplace
19Our Philosophy
- Provide Consumers with exhaustive and accurate
information to help them make informed decision
Our Philosophy is echoed by.
Provide Consumers with exhaustive and accurate
listing of restaurants
Provide Consumers with exhaustive list of
hotels along with consumer ratings
Provides Consumers with exhaustive list of
service providers with consumer ratings
20Thank You !