Investing in India Property? Beware of the Tricks used by Builders

investing in property in india

 

With the increased incidents of fraud in the Indian real estate market, Investing in India Property becomes risky it is high time that they are carefully discussed and delineated.

Here are some common tricks used by builders from whom you should protect yourself from Before Investing in India Property.

Possession of the Apartment

Most builders do not mention the possession date in the agreement.

They just mention: “The completion of the building is expected to be delivered up to the date declared in the cover letter of this allotment.”

The extradition of the possession is subject to force majeure. “This directly says that no step can be taken against the builder if he doesn’t hand over possession of the project in due course.

In most cases, where builders make delays, buyers put up with this only to avoid the retribution, harassment, and additional delays by builders. Besides, there is no mention of penalties or consequences for the developer. The agreement papers are for builders.

 

See: Tips for NRIs Buying Property in India

 

What should I do?

  • Do not just relax while confirming the construction status with the builder
  • Visit the construction site often
  • Start pressurizing the developer in case of delays. Since it can be difficult to put pressure on the builder alone, make a society of all buyers and go together.

Artificial Scarcity

Have you ever received a paper from the builders saying that 90% of their units have already been sold and only 10% left? Or with limited offers on Diwali or New Year, where you only have ten days to book the property?

These are just marketing gimmicks used by builders to create a fake emergency. Buyers who are interested in the project feel back and decide in a hurry.

What should I do?

Mostly, artificial scarcity is just to push the buyers.

  • Ask the real estate developer for time to think, to check and make an informed decision.
  • You can talk with different agents about the available units in the same housing project to get a real picture. If they use tricks, the number they specify will be different.

Super Stylish and Deluxe Sample Flats

It is human nature to envision and fantasize about different things in life. This is the reason most of the builder spend a lot of money on jazzy brochures and designer sample apartments to catch you.

If you look at these brochures and look at the sample apartments, you will immediately begin to imagine a place where you live a pleasant and elaborate life.

In this tech-savvy world, where buyers check real-life videos of sample flats with people who enjoy it there, be fooling them has got much easier for the agents and real estate developers.

What should I do?

  • Do not decide until you meet someone who has enjoyed his life.
  • Do not forget to visit the actual project site to see the real picture.
  • Check places, streets, neighborhoods and other important factors as you will have to spend your life there.

Fake Offers and Discounts

While I went through various real estate websites of residential projects during the festive season, I saw various offers and discounts. Some offer a free modular kitchen, while some boast the free car with the villa.

As a buyer, we feel happy to get something free. And, when it comes to a free car and a modular kitchen of Rs. 50,000, we unquestionably have a reason to be happy. Isn’t it?

No, the builders never pay anything out of their pockets. The buyers are the one who pays for extra but free amenities.

What should I do?

  • Compare the price of two different projects that offer apartments of the same size and in the same place.
  • The extra cost quoted by the builder with free modular kitchen is the money you need to pay for the free deal. So, do not fall prey to deals and discounts.
  • Compare prices and features before spending Investing in India Property to save your precious money.

Upcoming Infrastructure

Read brochures and location advantages of a residential project in India and most of them will have some upcoming infrastructure mentions.

Broad streets, metro routes, national highways, some educational institute, etc. are some of the factors utilized by the developers to create an illusion of a well-developed society.

What should I do?

  • Get tempted by these “upcoming features” only if you want to live your life on Google Maps.
  • We are all aware of the speed by which these proposed projects are completed. So, look for a project where you can start living a pleasant life right away.
  • Make sure you tour the project site and get a real picture of the infrastructure in the locality.

Be a Logical Buyer

Indian real estate is a complex sector where a buyer cannot survive by being emotional. Acquiring a home is a lifetime investment for which one should use his mind. So be a logical customer before investing in India Property and pay attention to the basics of home buying before you get out to begin the search for your dream home. If Still Confused take the help of property management law firm in India.

 

Also Read About: Delay in Possession of Property by Developers

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