This report will help your residential clients deeply analyse their property need, weigh all options and seamlessly take them through the final possession.

1. 1 I Colliers International
Six Steps to Make an Informed Investment Decision on
Residential Property
STEP 1
Determine Your Property Need:
End Use or Investment
STEP 3
Due Diligence for the Shortlisted
Projects
STEP 2
Inspect and Evaluate Options
and Prepare a Shortlist
Purchase Approach for Investor Purchase Approach for End User
Run a quick due diligence on the shortlisted
projects including:
• Approval and licenses i.e. commencement certificate
for work, environmental clearance, approved building
plans, allotment letter and development agreement;
• List of banks for financing the project;
• Quality of previously constructed projects by the
same developer;
• Developer track record in terms of total square feet
developed, market feedback and project delays;
• Status of land title with the developer;
• Status in terms of whether it was purchased by the
developer or he has the development rights;
• Blueprints of all of the plans.
• Decide on location, size, budget, amenities and timing.
• Match property options with property needs.
• Compare the shortlisted properties by jotting down pros and cons, the prices and other distinctive features.
• Invest in newly launched project at early stages to
reap benefits of early mover.
• Act swiftly to make a decision and not miss out on
good offers that are usually time bound.
• Invest in emerging markets for long term returns.
• Check / Track market trends across micro markets to
make informed decisions.
• Determine your expected ROI and exit once it has
been achieved.
• Don’t fall in love with the property in which you
invest. Property transactions take time.
• Don’t equate real estate to the stock market in terms
of exiting.
• Choose from ready to move in / under construction /
newly launched projects depending on your
reqiurements. For example, if you have an immediate
requirement, go for completed properties.
• Invest in a project where you can live; check the
neighbourhood.
• Understand the process and restriction in case you
are buying property from sale proceed of another
property.

2. STEP 6 Checklist for taking possessionSTEP 4 Financial Analysis
STEP 5
Taking Your Requirements from
Notion to Motion
• Total Cost of the Property = Basic Cost + Other Charges + Statutory Charges + Brokerage Fees
• Payment Plans- Down Payment / Flexi-Payment / Construction linked Plan / no EMI Plan
• Loan Requirement and Interest Cost
• Capital gain tax in case of buying property from the sale proceed of previously owned property
Document Checklist:
• Allotment Letter
• Builder – Buyer Agreement
• Payment Schedule
• List of Amenities
• Layout Plan of the Property
• Copy of the Project’s Drawings
• Receipts for all of Payments
• Construction Updates
• Possession Letter
• NOC Certificates
• Sale Deed
• Occupation Certificate
• Carpet / usable area of the Apartment;
• Completion date;
• Penalty clause in case of delay;
• Lock in Period
• Transfer Charges
• In the event of non-completion of the
project, understand the refund process
and interest.
Always check the following important terms
and conditions:
Do Analyse
1 2
3
4
5
Besides documents, the important things to check before taking possession
are Amenities, Basic Infrastructure like Doors, Windows, Paint, Walls,
Drainage, Leakage, Switches, Plugpoints and Safety Measures to ensure no
major repair work will be required after taking possession.
Disclaimer: This document has been prepared by Colliers International for general information only. Colliers International does not guarantee warrant or represent that the information contained in this document is correct. Any interested party should undertake their
own enquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damage arising directly or indirectly there-from.
For Residential Services, please contact:
Poonam Mahtani
National Director I email: poonam.mahtani@colliers.com
Colliers International is committed to accelerating our clients success. We understand that real estate decisions directly impact every part of your business, and our mission is to help you make the right choices for your
business. With more than 13,500 professionals in 482 offices across 62 countries worldwide, we use our wealth of market knowledge to help you achieve your goals. Visit us on www.colliers.com
For Research related queries, please contact:
Surabhi Arora MRICS
Associate Director I email: surabhi.arora@colliers.com