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Be-Cautious

Be Cautious While Buying an Under Construction Flat 

You may be worried about certain things while investing in any new project. There may be certain questions in your mind, especially when the property in under construction. You might have come to know about several disputed under construction properties. People usually hesitate in investing money in an under construction flat. But there is nothing to worry. Rather you just need to be cautious about several issues.

Concerns Regarding the Payment
If you want to be free from any kind of difficulties regarding the procedure of give & take of money in future, always choose the payment plan that suits your pocket and budget. The biggest question is – should we pay a lump sum amount to the builder or should it be in instalments or EMIs? To serve the purpose, Construction Linked Payment Plans and Flexi Payment Plans are the most suitable types. If you are given the choice, always go for any one of these instead of paying the entire amount to the builder at one go.

If the builder or the developer stops the construction due to some legal issue or any other reason – there won’t be any pressure on you regarding the future instalment payments. Even if you are going for a loan, the bank also finds an ease in the payment mode of such a payment plan. If you are going to pay full lump sum amount at one go, make sure each and everything about the project and its status & value in the market. Choose the option of full down payment only if you feel that most of the construction is being done and there is no risk in the completion of the project. Most of the builders and developers love to extract money from you on a complete down payment basis. To serve the purpose, they also try to lure you with some kind of discounts and schemes as well.

However, the construction linked plan is also not fool-proof! You need to understand it very minutely. In such a plan, the builders / developers tend to extract about 2/3rd part of the money from you while building an incomplete structure of the building. They take most of the time in the finishing of the project, which is the most vital part of any project. It consumes about 60% to 80% time of the total construction time.

The Clause for Penalty
If you cancel your booking, the builder asks you to pay penalty. So, clarify each & every issue at the time of booking only. Usually, the penalty clauses are discussed in the agreement. But it is not mandatory to be written in the agreement always, so clarify it with the builder. Even if you transfer your flat to someone else before the possession of the flat, the builder may again charge you with some sort of penalty in such a case.

Beware of Gifts
Today, the builders offer several kinds of gifts to the customers to lure them. However, the practise is not usually followed in Delhi / NCR, still you should be aware of the lucrative schemes. It’s good to have insight knowledge of the hidden terms & conditions. Rather, look for the proven track record of the builder.

Always go for a physical verification of your property site. Never get impressed with the figures claiming 20 min. drive from xyz place or 5 km. from abc place.