Hunting for an apartment to rent or buy in Chennai or anywhere in India is a challenging job. The real estate market is not transparent, and there are many unscrupulous brokers and property owner who will try to cheat you. Given below are a few pointers to help you stretch your dollar in a shady Indian real estate market as you search for your dream apartment.
Rental Vs Buying
Rent vs. buy comparisons are very common and have been
already discussed in length. However, the impact of several common assumptions on costs and opportunities has yet to be fully uncovered and explained.
Psychological Aspects of Rent vs Buy Comparisons
This article, a third in a series, is about the softer side of rent vs. buy. These comparisons have become very popular and can easily be made using one of the many online and can easily be made using one of the many online calculators available. However, the psychological aspects of this comparison have yet to receive their deserved attention.
As you may remember a correct comparison of rent vs. buy should be made for the same property in the same time frame Mere the two options are:
Mere the two options are:
- Buy the property today and repay it through out the period.
- Rent the property today and buy it at the end of the period.
The problem with the rent vs. buy comparison is, as always, the human factor. In order to compare rent vs. buy the human factor. In order to compare rent vs. buy correctly some assumptions need to be made which are not at all easy to meet up with in real life.
I’ve recently compared the common assumptions on costs and opportunities has yet to be fully uncovered and explained. I’ve recently compared the fully uncovered and explained. I’ve recently compared the two alternatives and have decided to share my experience.
We all know that in rent vs. buy the alternative cost of each option should be compared. When deciding to rent the primary cost is the rent itself. When buying a property the primary cost is the interest paid on the mortgage.
primary cost is the interest paid on the mortgage.
However, there are no less significant costs and opportunities to consider. We usually refer to these as alternative costs or opportunity costs. When considering these costs and opportunities we usually make assumptions
and let the Internet calculator do its thing. You must be aware your assumptions greatly affect the end result. One must use sensitivity analysis in order to examine the impact of these assumptions on the comparison as a whole.
Buying a property with a combination of equity and mortgage is actually leveraging your own equity. Leverage is essentially the use of borrowed funds to complete a transaction. Leveraged transactions hold significant potential benefits and, more importantly, significant potential risks. It is important to understand why leverage is the source of these risks and benefits.
Beware of Illegal Apartments
The CMDA regularly inspects properties and issues vacate orders to the occupants of any building that Is considered hazardous for Its Inhabitants and neighbors Dangerous living conditions include the presence of fire hazards and illegal electrical, plumbing, and gas works. Beware of apartments in the attic or the basement of a building. These units usually do not have adequate fire exits. Apartments In the cellar or basement may have small windows or none at all.
Illegal living conditions in an apartment may not be readily apparent, but there are some telltale signs The rent or the sale price of an illegal apartment is usually significantly low compared to similar units In the neighborhood. If utilities are “Induded” In an apartment, It may Indicate that the property owner does not want to disclose the actual number of occupants In the building. The owner of an illegal unit night insist that you cannot have your mall delivered to the apartment address.
Compare Prices
Some apartments in New York are subject to rent regulations. The rent control program places a cap on rental prices The rent stabilization program restricts the amount and frequency of rental increments Get in touch with the New York State Division of Housing and Community Renewal to find out if an apartment is subject to any such rent regulation.
You can negotiate the rent or the sale price of apartments in certain neighborhoods For instance, an apartment that faces an elevated railway line, a bridge, or a tunnel night be priced lower than a similar unit nearby that does not overlook an eyesore. You could be entitled to a rental discount if your building Is near the construction site for a subway.
Read the Lease Document Carefully
After you choose an apartment to rent ensure that the landlord draws tip a lease document. Steer clear of anyone who insists on a month-to-month contract and wants to be paid in cash. After your landlord draws tip the lease document, watch out for the common red flags In NewYork, tenants have an “implied warrant of habitability.”
This means that your landlord is required by law to provide you with a safe and habitable apartment. He has to carry out repairs like fixing an old heater or defective windows. If you have signed on for an apartment with a microwave and dishwasher, your landlord is responsible for keeping these appliances in working order. So do not agree to a clause that says you will take the rental property as is or pay for repairs oust of your own pocket.
Do not sign the lease document if a clause says the landlord is not liable for damages. A landlord will be held liable under the “implied warrant of habitability” if his negligence to maintain his property has caused an accident.
Before taking a Rental
Make sure to read all documents and be sure that you understand them before you sign. If you don’t understand something, just at a warning signal is when your potential landlord or rental agent cannot or will not answer your questions. Most leasing agents will have you do a walk-through on a property, noting any damages or faults that may be pre-existing. You should get a copy of this document regardless of whether you have signed it or not, and keep it with your lease. Make an appointment to see the property you wish to rent or lease. Never sign for a property that you have not seen, or allow money to exchange hands for it. Many hidden issues can come to light after you are already in a binding contract if you are not careful. Verify the owner of the property you are interested in by checking the property address against the tax rolls for the area. Most of this information is available online with your local county tax assessor’s office. If online services are not available, call or visit the office in person. If you are renting from an individual, ask to see their state issued identification, be it a driver’s license or ID, for identification purposes.
For renters — Before taking a property for rental
Renters’ insurance
Some landlords will pay for renters’ insurance for you; many do not, but nearly all require it. Make sure you know if your landlord will be taking care of this or if you will be expected to take care of it on your own. Your landlord may require you to carry a certain level of renters’ insurance. It may be too high for you; if so, see if you can negotiate it down or if your landlord is willing to deduct part of it from your rent. Regardless of whether your landlord requires it or not, renter’s insurance is a must for any renter.
Asking the right questions
There are so many questions to ask before you sign that lease! Make a list of things you need to know before you meet with your potential landlord so that you don’t forget anything. Here are some things to consider: Do you allow pets? If so, is there a rent surcharge?
Are there any items you will not allow on the property? Is there a cleaning fee at the end of the lease? Who should be called in the event something breaks down or needs replacing? How much is the security deposit? Is it refundable?
There are many things to consider when renting a home, and these five tips will help you on your way to signing a lease. Using the above tips will ensure that you find the best rental home for your family and that your rental agreement is free of hidden surprises.