19 Things To Check Before You Buy A Property In KeralaPosted on July 23, 2021
In recent times, the number of investments in land properties is increasing rapidly. Often people like to invest in land areas as they are less insecure and chances of a better return are higher. Following this trend, residential projects are developing almost everywhere in Kerala. People are choosing apartments to live in as these apartments come with more amenities, increased security, and less maintenance responsibility. While it is very easy to buy an apartment, there are chances too of getting trapped and cheated by thugs.
- 1 Here are the Common Concerns You Should Consider
- 2 1. Approval and Licenses
- 3 2. Title Deed
- 4 3. Check Release and Encumbrance Certificate
- 5 4. Check Land Use
- 6 5. Details of Banks Funding the Project
- 7 6. Find the Entire Cost
- 8 7. Check the Builder
- 9 8. The Size of Property
- 10 9. Buy or Rent
- 11 10. The Right Program
- 12 11. Verify the Infrastructure Programs
- 13 12. Explore the Site
- 14 13. Register the Plot
- 15 14. Buy Agreement
- 16 15. Professional Services
- 17 16. Construction Review by an Expert
- 18 17. In the Case of Multiple Holders
- 19 18. Gaining of Taxation Process!
- 20 19. Measurement of the Land
- 21 How To Choose The Perfect Location To Settle Down In Kerala?
- 22 Real Estate Market in Kerala
Here are the Common Concerns You Should Consider
What are the documents to be verified before buying a flat?
You must check all the paperwork of builder including Commencement certificate, Approval certificate of the building and Environmental clearance. Ensure that the entire project has been approved by the local body and development corporation of the city. Also check the Title Act of the property to ensure that builder owns it fully. One can also go to a lawyer to gain the details of the act.
What are the things need to check before buying flat?
There are chances that the apartment is acquired on bank loan, in that case, you need to gain a release certificate from bank ensuring the loan repayment is done. You must check the property doesn’t comprise any legal dues, with the help of the Encumbrance Certificate. If the builder are funded by bank, you must get the details of the banks that agreed to finance the project, before you buy the property.Builders gives the super built-up area which usually comprises the common areas. Whereas the core area of the flat can be thirty percent lesser than the area mentioned. It is always advised to go for the core area, defined as the area enclosed by walls and you should first explore.
So when you take the first step in order to buy property in Kerala, you should have a list prepared of Documents to be checked before buying a flat from builder to get a legal and healthy deal.
1. Approval and Licenses
It is very vital to check the paperwork of builder including commencement certificate, approval certificate of the building and environmental clearance. Ensure that the entire project has been approved by the local body and development corporation of the city.
2. Title Deed
Get the details of the owner of the land. While choosing an apartment to buy in Kerala, check the title act of the property to ensure that builder owns it fully. One can also go to a lawyer to gain the details of the act. Also get the information about the land status and check if the builder owns the land or he just owns rights for development of apartment.
3. Check Release and Encumbrance Certificate
While going to buy an apartment for resale, there are chances that it is pledged to acquire a bank loan. In such cases, one will have to gain a release certificate from bank to ensure that the loan is repaid now. It is also vital to clarify that the property doesn’t comprise any legal dues, an Encumbrance Certificate ensures you about it.
4. Check Land Use
Get the information about land use zone defined in city plan related to property. One can easily find the plan at the local body office in the respective city. Ensure that the property comes with your desired land-use plan.
5. Details of Banks Funding the Project
When Kerala real estate developers don’t have enough money to build their projects, banks assist them by funding the project. Many builders are not eligible to get bank loans at all. So, before you buy the property get the details of banks which are agreed to finance the project.
6. Find the Entire Cost
Do not believe blindly on costs the real estate agent or broker explains you. Many times he just mentions the initial primary cost and no other factors like preferential location charges, internal and external development charges, service taxes, parking/club fees. Verify the final total cost of the apartment.
7. Check the Builder
The land property in question can be under legal disputes. So, it is advised that you go for a detailed verification of the manufacturer. You can verify its on-going or ready to occupy projects and even ask queries through various online forums.
8. The Size of Property
Builders advertise the property as a super built-up area. This comprises common areas as the lobby, staircases, and so on. The core area of the flat can be thirty percent lesser than the area mentioned. For an example, buy property in Kerala; a two-BHK 1,200 square feet apartment could be just 900-950 square feet. It is always advised to go for the core area, defined as the area enclosed by walls. If you are going to buy a residential property, it is suggested to first explore your need. You should verify the land amount that will be required to build your home. Soil quality and Topography are also the other major factors.
9. Buy or Rent
People go to buy property in Kerala assuming their rent can be used to pay EMIs. It’s completely wrong approach, one should not leverage much assuming that rental savings can be paid as EMI. The rental gain on residential apartments is generally very low.
10. The Right Program
There are different payment methods available in the market such as flexi payment plan, down payment plan, possession linked plan and construction linked plan. One must choose the payment method carefully as there would be certainly a cost for every convenience you get. As in subvention schemes, the cost is at least ten percent higher than the total charge under regular plans. Any delay in payment or problem with the builder in schemes can affect your property. There are guaranteed programs also under which the builder pays you rental money for a fixed time at the time of construction or a particular period after the possession of buying property in Kerala. In the first scheme, you gain payments from the builder during construction of the house, which helps him offset rent costs or a fraction of EMI. In the second scheme, mostly used for properties established outside the city, the builder offers rental money after giving possession of the property. Still, there is no certainty of following terms and conditions that make it less attractive.
11. Verify the Infrastructure Programs
Big attractions for real estate like nearby to established railway stations, airports or building in future in the area of the target property can increase the return while investing. One should also check that any hazardous or unsafe industry is not established in the same locality in which the property exists. Also, read rera in Kerala.
12. Explore the Site
The developed area shown in the brochure can be entirely different from real circumstances. So, go for a site visit prior buying the property. Explore the location, Interact with persons living in the neighborhood as they could have better information about an illegal activity or any litigation related to the desired property.
13. Register the Plot
After choosing a property, one should register it with the respective authority concerned to become land’s owner legally. By following this process, you will be able to gain the property’s rights. One should go for research about the record of the developer in form of total projects those are developed, project delays and market feedback. You should check the quality and sustainability of its completed projects in past. You should search for controversies which may create problems during the development of property. In this process, you can go through real estate forums.
14. Buy Agreement
You should thoroughly review this document to ensure that it contains all of the promises made. The only legal responsibility for what is in the purchase agreement is that you can hold a builder or promoter, not what is verbally promised. The contract should include all vital building project information such as specifications for the project, the accommodation, payment conditions, deadlines for completion and type and amount of punishment in case of default by any party. The contract should also include a provision for the transfer to society of the common spaces. Infact if you buy property in Kerala will gives you a great relief that every agreement is provided with detailed information!
15. Professional Services
Try to gain professional services even though online forums provide home listings and unprecedented access. If you don’t have any experience, it would be better for you to hire a professional agent.
16. Construction Review by an Expert
It is always advised to get services from an expert civil engineer to find the real condition of the building. It will provide you the details of construction quality, strength, and repair required and so on.
17. In the Case of Multiple Holders
One should gain a release certificate from each and every owner before buying the land. Otherwise, it can create trouble in form of legal issues. Getting a release certificate will help you to avoid unnecessary legal disputes.
18. Gaining of Taxation Process!
When the price is appreciated, consider capital benefits and the tax that can be incurred if you buy property in Kerala to sell it. Within 3 years if you sell the propety, short-term capital gains will be generated. If you will make long-term capital gains if you sell them after three years or more. Short-term profits are imposed following your tax burden, and long-term benefits are taxed to a maximum . You can avoid tax by purchasing land or building a house within two years, or investing in bonds for capital gains.
19. Measurement of the Land
It is always advised to precisely measure the area before getting the land registered. You should ensure that the taken measurements are accurate and precise. A recognized surveyor will help you in this process.
These are must check things while buying a property in Kerala. One can easily acquire a legally qualified and desired property following these tasks.
How To Choose The Perfect Location To Settle Down In Kerala?
Before you buy property in Kerala, you need to choose the ideal location. Kerala is a small state but comes with diverse landforms. You have silent, remote towns where the ambiance is known for tranquility. On the other hand, the metropolitan cities are crowded and popular for the never-ending hustle and bustle.
Selecting the perfect area to settle down in Kerala is not an easy job. Several factors are there which you need to consider.
In the below section, we have listed down some of the most important factors you need to consider before you buy a house in Kerala.
First you need to choose the type of neighborhood you want to live in. If you are single and looking for a small property to live alone, any type of neighborhood will be good. But if you are a family person, you need a jolly neighborhood with safety at its epitome.
People living in close vicinity must be welcoming, hospitable, and polite. After all, regardless of how many people will live in the property, choosing a bad neighborhood has been an option. Also take a look at best place to live in Kerala.
Next you need to look at the environmental conditions. For example, if you want to experience warmth, places closest to the beach area will be ideal. In these areas, the temperature remains moderate throughout the year.
Similarly, if you want to live in an area full of green covers, choose a location close to the Western Ghat slopes. These mountain slopes are usually covered with dense forest which will keep you close to nature.
For people looking for natural windy areas, choose open lands where lots of trees are there but minimal number of constructions.
Types of Houses Present
When you want to buy property in Kerala you need to look through the house types you prefer the most. For example, gated communities are mainly present in the cities with two-storied buildings at the most.
If you want to live in a modern or contemporary styled house, the metropolitan cities will be the best choice.
Soil Quality And The Terrain
If you are planning to buy a land sale in Kerala, it is mandatory to check the soil quality. The ground shouldn’t be covered with loose soil as it will be weaker to lay the foundation. Similarly, a rocky land is also not ideal as it needs to be leveled. And automatically that will increase the cost.
Also, do look out for the terrain slope. It should be as even as possible so that minimal leveling needs to be done. However, if the slope is uneven, either you need to worry about filling up the vacant land or use stump blocks to support the house’s floors.
Availability Of Amenities
One of the main things to check while looking for the best property in Kerala is the amenities availability. Living in a remote location is good for your mind and health. But make sure that the area has stores, markets, medical shops, and a local hospital.
Similarly, while looking for the property, do ensure that you ask about the water supply. You must know where the water will come from and whether or not it’s hard water.
Amenities like super markets, malls, grocery and food markets, schools, and other such facilities must be near. If not, at least they should be within short travel range.
If you are buying a property or land in the remote parts of Kerala, you need to ensure that the location is well-connected with roads. You must have proper roads constructed so that reaching the towns and cities wouldn’t be difficult.
Also, check the road conditions and ensure they are properly illuminated. The roads mustn’t have any kind of crack or feature which might lead to accidents.
Real Estate Market in Kerala
To be very honest, no, the real estate market is not cheaper in Kerala. But there are valid reasons for the prices of both land and properties being so high. The state is economically advanced since it’s a part of the IT circle of southern India. Moreover, the towns and cities are full of advanced level amenities like top hospitals, multiple supermarkets, top-level schools and universities, multiple companies, and others.
So, unless you have a proper budget plan, buying a house or land in Kerala will put you in a tight spot. Also read real estate trends of Kerala.
Calculation Of the Real Estate Property Price in Kerala
Since you need to draw a budget before buying a property in Kerala, you must consider the factors on which the real estate price depends. Having said that, let’s look at how you should make a budget plan for a property purchase in the state. Also read common land measurement units in India.
- First of all, you need to decide whether you want to buy an open land or a built-in property. For those who want to buy land, you need to consider the standard land value per acre along with land registration and agent fees. But if you are planning to buy a built property, you need to consider the carpet area price which consists of the areas you will use and the total area of the home.
- The price of the property will depend on the place where you want to buy the same. If you are choosing cities or towns, the cost will obviously be higher. But the isolated and remote areas won’t have properties with too much valuation. In addition, the cost will also depend on the neighbourhood, the city in which you are buying, and several other socio-economic factors.
- The total cost of buying a property will depend on the condition. For lands, you need to check whether the geographical factors are meeting the rules and regulations of the real estate industry. If that’s not the case, the price will be lower than expected. Similarly, if a house has damages which haven’t been repaired yet, the total valuation will decrease automatically.
- For those planning to buy a house, the cost will depend on the condition. If you are buying a readymade property with the walls painted, windows and doors constructed properly, and others, the cost will be higher. But in case you are choosing a newly built home where you have to do all the décor, the total valuation will decrease.
- A resale land or property usually costs more as compared to a new one. This is because over the years, the property valuation encounters appreciations. Hence, make sure you are choosing the right property as per your budget plan. Check the land price in Kerala or the house valuation and compare them to select the ones within your affordability range.
Settling Down In Kerala
Kerala is indeed suitable for settling down, irrespective of whether you are going to live alone or with family. However, we won’t ever claim that Kerala is the best place to invest in real estate in the entire country. We can explain the facts that have made Kerala one of the top choices for real estate buyers and investors.
In the below section, we have discussed the factors due to which Kerala has become popular in the real estate market.
- Kerala is a holiday destination, one of the most popular in India to be specific. So, if you want to start a business in tourism, Kerala is an ideal choice. Here the real estate industry has become popular due to the tourism industry only.
- As a buyer, you will have abundant options in terms of property. Be it the lands or the readymade houses, you will have several options that will suit your requirements the most.
- Kerala has modern amenities and several other facilities, starting with offices to hospitals and academic institutions. This is another reason why Kerala has become a prime location for settling down in the state.
- The weather in Kerala is quite amazing. It receives a hefty amount of rainfall during the monsoons. The winters are warm and comfortable to live mainly in the beach areas. If we move towards the mountain areas, the winter season will become a bit colder which is tolerable. Also consider top reasons for real estate investment in Kerala.
House Construction On Agricultural land in Kerala
One cannot build a house on agricultural land in Kerala. First, you need to convert the agricultural allotment of the concerned land to residential. And then you can register the land under your name as a residential property. Failure to do so will put you in jeopardy as the government will raise legal lawsuits against you.
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