By Accommodation Times News Services
At time, people take risk by booking in under construction properties and projects. While 80:20 type schemes have failed and fraud detected in many of them, buyers are preferring ready to move in properties.
The biggest hurdle is home loans. Housing finance companies not entertaining under construction properties especially which are not appraised by them. They require Occupation Certificate or Building Completion Certificate. In the past, 80:20 schemes were reported by this newspaper will turn into fraudulent and unfair business practices, proven with growing legal issues reported at various courts.
NRIs too, interested only in ready properties where the risk is nil and no waiting while one arrest the price at current level. Often builders raise price by way and means and adding some add on later while delivering. Black mailing buyers before handing over possession. Buyers end up paying almost 10 to 15% more while trying to snatch the ready property. After occupation, majority of projects do not give mandatory Occupation Certificate hence occupiers suffers for water and power besides conveyance and formation of society.
Many times builder take funds and on pretext of fight between directors or non availability of permission, delay project for two to three years while invest buyer’s fund in purchasing land and FSI, after three years he returns the money with minor interest. The loss is of buyer. He looses the capital appreciation of property and builder sail with interest free funds. Relaunches same project after three years with enhanced price.
Ready to move properties reduces the risk of such unfair trade practices. Home loan is also available and one can move in within a week of its purchase. The trend is catching on. Booking in under construction projects especially 80:20, 15:20:65 scheme are dangerous with highest degree of risk even if housing finance company grantee its delivery.