Ask any real estate sales person and he or she will tell you that real estate is all about Location, Location & Location. However, it can’t be further from the truth. Real Estate is not 1-Dimensional – it has so many aspects to it apart from location. Most important for any individual or a household is the budget. This is finite as it is limited by the earning potential of an individual or family. However, once you have finalized the budget of your dream home we recommend 3 critical parameters to evaluate while short-listing the property:
(1) Quality of Builder – The most important factor that buyers should consider is the quality of builder. You are going to stay in your home for the next few years or may be next few decades so buy the best quality as far as possible. Look for builders who have been in business for years, have developed a good portfolio of real estate projects and known for their integrity.
Don’t shy away from paying a premium for such properties – you will end up saving cost and pain in the future.
(2) Location of Property – Location does matters. After all you will be going to be a part of the neighbourhood till the time you choose to be there. So carefully study the neighbourhood and decide on it. Always survey the neighbourhood before you commit to it. Do you like the people who live in your neighbourhood? Do they reflect your value system? You are not just a part of your gated community but also your extended neighbourhood, which shall have measurable socio-cultural impact on you. For additional info you can read this post.
If your property is not in a location that allows you to have a healthy work life balance, select a location where minimum number of family members have to travel long distances. Try to ensure kids don’t have to travel long distances to reach their schools or spouse / elderly don’t have to walk long miles for daily household needs.
(3) Price Potential – Legendary investor Warren Buffet said “Price is what you pay. Value is what you get”. Always make sure the property is a value for money. Once you know your expectation of values from the residential property, hunt for properties that are least priced subject to above two parameters. Study the comparative charts of projects in a location and figure out why there is a variation in prices. A property bought at lower price, ceteris paribus, will have higher probability of appreciation.
One thing which rarely changes in a real estate is the property itself (at least in short and medium term). Everything else associated with the property changes – its neighbourhood, connectivity, price and demography. Quality of life in a location changes with time, mostly gets better. So do not be so finicky about the location and end up paying a high premium. Be an active community member and ensure your neighbourhood remains safe, clean and vibrant.