got some real great tips from my cousin G about investing in house for capital appreciation purposes
- a good construction company makes re-sale easier
- its better if the construction company has other projects in pipeline. they wud like to keep the current projects in 'green' to avoid negative impact on proposed projects
- the price of the house wud go up if the construction company is more or less on time and is about to start a new project
- project at 50% completion is a good time to sell. u can also wait on closer till project completion.the art is not being greedy and not over-wait.
- sell before possession is offered. you can save on sunk cost like registration charges etc
- expected appreciation in price coz of nearby projects must be considered
- you can think of going in for a bigger house size as u do not plan to hold on till the end and need not pay the entire amount. plus the builder wud be paying more attention to the bigger units. also its better selling proposition for re-selling, you get little higher appreciation
- if u have a good friend, pool in the resources so that u can avoid the loan. home loan EMI have the highest load in the first year as most part of the interest is paid in the first couple of years, then the principle repayment starts
- you can get really good price in pre-launch offers
- a builder can give upto 7-8% discount, a dealer 3-4%. they work with these minimum margins
- bargain as much as u can, there is a lot of scope to negotiate. if not he price, then include the additional charges like parking / edc/ idc / club etc in the bsp
