Things to Consider Before Buying a Small Flat

We always dream of getting a permanent place to live. A residential flat can fill our dream. Every day we save a specific amount of money to buy a good quality flat. It’s a long-term process and decision.

Suddenly you can’t decide to choose a flat. So before buying a small flat you need to go through a lot of research about the flat location, condition, experienced builders, flat facilities, etc. So how can you know about them? No worries! In this article, I have discussed all these factors. I hope this will be helpful for you in choosing the right flat.

7 Things to Focus on Before Purchasing A Small Flat

1. Right Location

The location of the flat plays a significant role in terms of buying a small flat for personal use. We know that buying a flat is a long-term investment. You might use the flat for rental purposes or you will personally use it. 

So you have to choose the location of the flat very carefully. Also the price and quality depend on the location of the flat. Suppose you want to purchase a flat in Dhaka city. You will see huge differences between areas like Gulshan, Banani, Dhanmondi, and Mirpur.

When you are going to choose a flat location you should focus on these factors.

• The transportation system is the most essential factor for the metropolitan area. You should choose that area, where you can easily get different types of local and private vehicles to go all over the town. It will save a significant amount of time.
• You should ensure that there are good quality education and healthcare facilities available in the area.
• The distance between your office and your apartment or flat building should be short.

Read also: Top cities to buy ready flat in Bangladesh

If you properly analyze all these factors, you will be able to choose the right location for your flat.

2. Set Appropriate Budget

Suppose you have a decent amount of money in your hand. Will you suddenly jump on buying your desired flat? I think it will become an irrelevant step. Before buying the flat you need to set up a proper plan about the overall budget of your flat.

Because along with the flat price, there are multiple types of costs such as maintenance, renovation, fees, taxes, etc. Many of us think that the budget is only the price of the flat. But you have to consider all the expenses as an overall budget.

First, look at the price of the flat. You already know that the flat price is different based on location and size. In the Gulshan and Banani, the flat prices are around 3- 8 Crore based on the flat size. 

On the other hand, you will find a more reliable flat in the Dhanmondi area. You will find small size flats around 40-90 Lakhs. Also, the Dhanmondi area is efficient in the availability of necessary services and stores.

But if you are looking for a more convenient and budget-friendly small flat, you can choose the Mirpur area. This area is especially beneficial for affordable sales and rents.  You can easily purchase 600-700 sq. ft flats for around 20-25 lakhs. 

If you want to reduce the living cost in Dhaka, you can read this blog – How to Reduce the Cost of Living in Dhaka

Read also: Budget friendly areas in Dhaka for buying a flat

3. Take a Home Loan

Taking home loans from the banks is one efficient way to buy a small flat. It will help you to reduce the overall budget pressure. Because you don’t have all the money at once. Currently, there are multiple private banks available that provide home loans like City Bank, AB Bank, EBL, etc.

Recommended reading: Different types of home loan in Bangladesh

You can choose any of them for purchasing your dream apartment. The procedure for taking a home loan is almost the same for every bank. To become eligible for a home loan the applicant’s monthly income is 40,000BDT. If the applicant is a government employee, his or her monthly income should be 25,000 BDT. 

• How much money do banks provide for the home loan?

Generally, most of the banks provide 5 Lakhs to 2 Crore for home loans. For taking the home loan you need to arrange all these documents appropriately. 

In this part, we will discuss the procedure of the IPDC home loan process.

• Application Form(Home Loan)
• National ID Card(Applicants)
• Passport Size Picture
• Bank Statement
• Income Slip
• E-Tin Photocopy
• Asset Related Papers

With all these papers you have to submit to the authority. They will properly verify all the documents. You will be eligible for a home loan after the verification process.

Recommended reading: Things to know before taking a loan for home or flat

4. Check Flat Condition

I hope you have already chosen the location and arranged all the money for buying a flat. Now you need to focus on the condition of the flat. The overall condition of the flat can change multiple factors such as price and other facilities. In Bangladesh, you will see two different conditioned flats. 

• Under Construction – Under construction flats are those flats that are completed yet.
• Ready Flat –  Ready flats are those flats that are already completed. Buyers can instantly use the flat after the purchase process.

Both types of flats provide different types of benefits to the buyer. Let’s focus on the major benefits of under-construction flats.

• Under-construction flats are more convenient and cheaper than ready flats. The difference between the flat price is 20-30 percent.
• Also, these types of flats are efficient for return on investment property. After the renovation process, you can sell the flat at a higher price.
• Flat current owner will provide different discounts and offers.

But there are lots of disadvantages of the under-construction flats. You can’t immediately use the flat. Also, the builder might face difficulties during completing the flat. Well, let’s know about the benefits of ready flats.

• Ready flats are especially usable for urgent purposes.
• Buyers can check the overall construction quality.
• No future renovation and construction costs.

So after considering all these factors, I can say that the ready flat is the best option for you. Because you are searching for a small flat for your future use.

Read also: Why you should design your Interior during building construction

5. Find A Good Builder

When you are going to purchase a flat, you will find different types of construction companies in Bangladesh. You should choose the right real estate builder company very carefully. Because the overall flat quality and facility will depend on the construction company.

Suppose you purchase a flat with a higher price. But the overall facilities are not up to the mark. Builders are important for the under-construction flats. You might purchase the flat before construction.

But after that, the entire issue will depend on the developer or the construction company. If the developer team doesn’t have enough experience, it will take too much time to complete the entire flat.

Some important tips for choosing the right builder.

• Do extensive research on the builder’s experience, portfolio, quality of work, etc.
• Also, you need to focus on the reputation of the builder in the current marketplace.
• Give appropriate and clear design ideas to the builder about your desired flat.
• Contact a real estate expert to get a proper idea about construction.

So before choosing the builder, you need to gather lots of knowledge about the flats and building development. You can share your preference with the construction company.

6. Available Facilities

Just choosing a luxurious and beautiful flat is not the end of the task. You must ensure that the apartment building has multiple facilities. It will help you to live a quality full life with your family. On the other hand, if you want to purchase the flat for rental purposes, extra facilities will increase the rent of the flat.

So let’s know about the major facilities that you need for your small flat.

• Security Assurance – First, you must focus on the overall security quality of the apartment building. You have to ensure that the building is monitored under the CCTV cameras. Also, the building should contain a strong lock system.
• Elevators or Lifts – Most modern buildings contain elevators. It helps save time.
• Enough Parking Space –  You might have a private car or motorcycle. So a parking space will help you to keep your vehicle organized.
• Exercise Area – We know that everyday exercise is essentially important for our overall health. So your apartment building should contain an exercise area or gymnasium.

As you are going to choose your desired flat for the long term. Because most of us don’t have the option of purchasing multiple flats in a short amount of time. So you should check the available facilities of the apartment building.

Read Also – Top Reasons to Invest in Residential Flats in Bangladesh

7. Maintenance And Other Costs

We normally think only about the entire price of the flat. But there are multiple types of hidden costs available. You have to pay these costs after buying the flat. Because assets like commercial flats, residential flats, and cars come with multiple factors. To use these assets you need to focus on these factors very carefully.

The additional cost is one of the biggest issues for the flat whether that is big or small. What is the additional cost of a residential flat?

Registration Fees – To purchase the flat you must go through a registration process. So, you have to pay a specific amount of money to the current government. After the process, you will be considered the owner of the flat.

Maintenance Fees – Now you own the flat. Each apartment building authority hires different people for maintenance like security guards, cleaners, etc. So the flat owners have to pay them.

Repair Fees – Repairing fees is another important fee for residential flats.

Final Words

Buying your dream flat is not so easy in the current situation. Because there are lots of frauds and unprofessional builders available in the real estate marketplace. So before choosing the flat, you must pick the appropriate construction company. Also, you must analyze the location of the property. Because the flat prices drastically change depending on where it’s located.