A new wave of Indian homeowners is jumping on the freight train.
They are eyeing land with a price tag of Rs 10 crore and are considering building on top of existing structures to get the same amount back.
But the hurdles are many.
Here are five common hurdles, which can deter potential buyers.1.
The house is in the suburbs.
The most common reason for a buyer to sell is due to the lack of access to the market.
Some are reluctant to move because of the cost and other because they feel it is an ‘in-your-face’ move.
The lack of space can also make them feel uncomfortable, says Amit Kumar, a real estate agent in Hyderabad.2.
The property is in an affluent area.
Many buyers are drawn to rural areas due to their affordability.
The cost of a new home there is less than 10% of that in the city.
This can make a buyer wary about moving to a bigger area, says Kumar.3.
The market is crowded.
A buyer looking to buy property in a residential area can be wary about jumping on a freight train, because there is no shortage of properties available.
The problem here is that many buyers are reluctant and even wary of moving to the suburbs, says Kapil Srivastava, a senior vice president at Nandini Properties, a property brokerage firm.4.
The buyer is not a buyer.
The market is flooded with properties, but there are no buyers willing to take on the risk.
There is no need to buy the house from a new buyer as there is already a buyer in place, says Sriv.
The best time to buy is when the house is not being sold, he adds.5.
The land is too far from the nearest railway station.
The first step is to ensure that the land is not too far away from the railway station, says Anup Singh, a land market expert in Ahmedabad.
There are plenty of residential properties in areas with good railway connections, but the best way to get access is to get to a train station in the suburb.
For more affordable housing, there are plenty available in suburban areas and there is a shortage of available land.
“It is a question of when and not if,” says Singh.
The best way for buyers to avoid moving is to use the cheapest option available, says Singh, and to use a good property broker.
For an affordable home, a seller needs to be prepared to pay a hefty sum for the house.
The average value of a property in the country is around Rs 20 lakh.
The broker will charge a commission to the buyer, so it can be a significant amount.