The under-construction real estate projects or newly launched projects have stuck across the country mainly in Delhi-NCR, Noida and Greater Noida, no home buyers make effort to invest into under construction projects after developers providing several benefits. Why is it so?
Senior Advocate Dr. Sanjay Chaturvedi said, “GST and Pre-EMI is the main cause which fears home buyers to invest in under construction project.” The home buyer needs to pay around 18% of the project to the State government in a form on GST and Stamp Duty, it added.
Pre-EMI is where you have availed only a part of the loan, you would be required to pay only the interest on the amount disbursed till the full loan is availed. This interest is called pre-EMI interest (PEMI) and is payable monthly until the final disbursement is made, after which the EMIs would commence.
According to a source familiar with the schemes said, “After the builder receives OC of the project, developers increase the amount of flat by 15% to recover financial loss.”
About 49% home buyers prefer ready to move in properties while 35% are looking to buy property which will be in ready-to-move-in stage within the next six months and 11% participants favoured those properties that will be ready within a year and only 5% buyers want to put their money in newly launched projects, according to an agency referring to ANAROCK survey.
Real Estate market of DELHI-NCR, is badly affected by defaults and delays in handing over homes to buyers.
However, the RERA has played a vital role in shaping the mindset of the home buyer which makes them play smart before investing hard earned money. According to a source, there are over 15,000 projects which are under understand and newly launched.