An easy-to-browse ready reckoner for everyone, with lots of easy tips
TACKLING HOME PURCHASE DELAYS
1. The biggest problem of property buyers is project delays stretching to several years, even in government projects at times.
2. Buyers should firstly try to invest only in projects that have reputed financial institutional participation, for exercise of greater due diligence and accountability, as banks may refuse to disburse loans even after the initial down payment.
3. Before investing in a project, ask the developer:
a) if he has obtained construction finance
from a bank,
b) to show you the title deed to the land,
c) to show you his licence and proof of other clearances for developing the project,
d) to specify the deduction in the sale deed if you decide to cancel the booking later due to a ‘genuine’ reason.
4. If a builder refuses to refund, explore the option of even shifting to a completed, or nearly complete, project by the developer.
5. Negotiating as a group can also force the developer to speed up construction or offer discounts, more so if done through senior government officials or political representatives.
6. With delays becoming widespread, you could try your luck in the secondary market, where ready-to-move-in new apartments are often available at a discount to primary-market rates, although you need to have higher initial liquidity.
7. Even if you buy one at a reasonable premium, it's better to be safe today than to be sorry tomorrow - at the additional expense - by buying peace of mind and saving precious time and energy.
8. Many developers in financial distress also offer attractive plans where a large portion of the total cost of the house has to be paid after possession, and opting for such plans provide a hedge against delays.
2. Buyers should firstly try to invest only in projects that have reputed financial institutional participation, for exercise of greater due diligence and accountability, as banks may refuse to disburse loans even after the initial down payment.
3. Before investing in a project, ask the developer:
a) if he has obtained construction finance
from a bank,
b) to show you the title deed to the land,
c) to show you his licence and proof of other clearances for developing the project,
d) to specify the deduction in the sale deed if you decide to cancel the booking later due to a ‘genuine’ reason.
4. If a builder refuses to refund, explore the option of even shifting to a completed, or nearly complete, project by the developer.
5. Negotiating as a group can also force the developer to speed up construction or offer discounts, more so if done through senior government officials or political representatives.
6. With delays becoming widespread, you could try your luck in the secondary market, where ready-to-move-in new apartments are often available at a discount to primary-market rates, although you need to have higher initial liquidity.
8. Many developers in financial distress also offer attractive plans where a large portion of the total cost of the house has to be paid after possession, and opting for such plans provide a hedge against delays.