Are you thinking of buying property in Hyderabad?
Congratulations, you are about to step into one of India’s most exciting and fastest-growing real estate markets!
Whether you’re looking for your dream home or a rental, Hyderabad’s real estate landscape is full of opportunities. But with opportunity comes risk; you may severely overpay for a property, or worse, you could be the victim of fraud.
The good news? You can evaluate a property investment in less than 30 minutes!
Yes, you read that correctly. A simple property inspection checklist can enable you to protect yourself from costly errors.
Here is the easiest way to Evaluate Property Deal in Hyderabad or less, without fear of being scammed.
Minutes 1-5: Verify the Seller’s Identity and Ownership
Before you begin to look into properties, you should make sure that the individual selling the property actually owns it and can legally sell it Evaluate Property Deal in Hyderabad in 30 Minutes.
Key Steps to Take:
- Ask for the title deed:
This document verifies that the seller is the legal owner of the property. It is evidence that they own the property and is needed moving forward
- Cross-check the name of the owner on the Encumbrance Certificate (EC):
The EC provides you with the legal history of the property. It also establishes whether prior loans and claims exist on the property. The seller should possess a name consistent with the one found on the EC
- For gated communities:
Verify the builder is RERA registered. RERA registration (Real Estate Regulatory Authority) gives a stamp of approval that the builder has previously conducted transactions authorised by relevant real estate legislation. Visit the site to check if the builder is RERA registered.
Pro Tip: Even if the seller is a “friend of a friend”, do not skip this step. One of the most common techniques used by scammers is to expose buyers to fake documents.
Minutes 6-10: Location Check – Is It Worth It?
Location is one of the most important factors when it comes to the long-term worth of your property. Here’s how to make sure that the location you choose is worth the investment.
Key Steps to Take:
- Is the Property Located in a Developed or Developing Area?
Areas like Kokapet, Narsingi, Gachibowli, LB Nagar, and Kompally are all fast-growing prime locations in Hyderabad. The point being, look for places where there is a rapidly developing infrastructure – it usually bodes well for a great investment potential.
- Use Google Maps or Property Listing Websites:
Research the nearby amenities like schools, hospitals, metro stations, and markets. More amenities near the property make it more valuable and enhance its rental potential.
- Road Conditions:
Make sure the road to the property is at least 40 feet wide. In addition, adding further considerations, does the road become narrow or is it an alleyway? This can create problems around legal permission or future development.
Pro Tip: Road-widening plans can hugely affect the value of your property. Be sure to inquire with the GHMC (Greater Hyderabad Municipal Corporation) to see if they are proposing anything in the pipeline. You don’t want your lovely house to eventually have a road outside your gate
Minutes 11-15: Legal Clearance Checklist
Before you jump in, it’s imperative to make sure the property has the necessary legal clearances and approvals. This process helps ensure that you are making a safe and legal investment.
Key Steps to Take:
- Ask for the HMDA or GHMC Approval Letters
These letters certify that the land is legally approved for residential use by the Hyderabad Metropolitan Development Authority (HMDA) or GHMC. If the property does not have approval from either, you’re probably better off moving on.
- Make Sure It’s in a Legal Non-Agriculture (NA) Zone
If a property is in agricultural zoning, there are potential legal issues with building a house. Check the zones to make sure the property is classified as a non-agriculture (NA) zone, which indicates it is zoned for development.
- With Flats/Apartments
Confirm that the builder has obtained the Occupancy Certificate (aka OC) and the Building Permission. The property is legally allowed to be occupied if these conditions exist
Pro Tip: If it says “Gram Panchayat Approved” in prime locations, it generally means there is no real approval on the property and has the potential for legal problems down the road.
Minutes 16-20: Price Check – Are You Paying Fair?
You want to be certain that you understand all the financials of the agreement. A property’s price can vary greatly based on different reasons. Here’s how you can ensure that you’re not paying more than you need to.
Key Steps to Take:
- Research Prices in the Area:
Check online what similar properties in the area are selling for. You can use property listing sites to check the price/sq. Ft.
- Look at 2-3 similar listings:
It’s probably a good idea to look at 2-3 similar properties before making your choice. This gives you a sense of what is the fair range of price for that area.
- Be Clear Built-up vs Carpet area:
You need to be clear whether the quoted price is for built-up area or carpet area. A built-up area includes walls and common areas, whereas a carpet area is the actual usable space inside the apartment or house.
Pro Tip: If it is priced too low, there is likely a hidden catch. If it is priced too good to be true, it likely is. On the other hand, if it is much more than a similar listing, you may want to reconsider.
Minute 21-25: Builder or Seller Reputation
The reputation of the builder or seller is significant to a property transaction going smoothly. Doing some research can save you a headache down the line.
Key Steps to Take:
- Google the builder’s name + “scam”, “delay”, or “reviews”:
Look for any negative reviews or articles about the builder. Any mention of construction delays or legal issues or scams is a sign of caution.
- Check how many projects the builder has completed:
A reputable builder will have a good number of completed projects. Look at the builder’s past projects to determine the quality and reputation of their projects
- Request buyer references:
If it is a pre-construction or pre-launch project, be sure to ask the builder for references of past homebuyers’ experiences.
Pro Tip: If you are looking at a resale property, speak to the neighbours. They will be able to provide first-hand experiences of living in that community.
Minute 26-30: Final Check – Is the Property a Good Long-Term Investment?
Key Steps to Take:
Would the property appreciate in the next 5-10 years? Look for areas that have planned growth, such as tech parks, universities, metro stations and retail hubs to gain further value.
- Rental Potential:
If the property is for investment, you will want to think about rental income potential. Properties next to commercial areas, schools and metro stations will give greater returns. If the property does not have rental potential, think about what the potential growth could be.
- Check for Improvement Projects in Vicinity:
Are there any big improvements planned, such as new flyovers, highways, or IT parks? These improvements would have a monumental impact on property value by providing better access and potential demand in that area
Pro Tip: Always consider the future. The west and south zones of Hyderabad, including areas like Gachibowli, Narsingi, and Kokapet, are among the fastest-developing areas. Choose carefully for a greater return in the future.
Smart Steps to Secure Your Investment
At Anokhi Homes, we believe that every potential buyer should have an informed, safe, and transparent property investment experience. Whether you are purchasing your ideal home or buying an investment property, performing these checks in the next 30 minutes should prevent you from having to deal with a scammer, fraud, or overpaying for the property.
Take your time, perform your diligence, and never discount the necessity of reviewing all paperwork to be completely informed. As a reminder, real estate transactions are typically long-term purchases, and you want to make sure that you’re covered.
If you would like a professional opinion or assistance in evaluating any property deal in Hyderabad, contact Anokhi Homes. We assist with the process every step of the way.