Keep This In Mind Before Opting For A Home Buying Scheme
Considering “Assured returns”, “Buy Back offers” and other investment options in the real estate sector that fetch you good returns? In the absence of a centralised regulatory body that compiles any price related information or information regarding upcoming or existing projects it is really hard to rely solely on the schemes brought out by developers. Home buyers opt for the schemes merely by surfing the internet, visiting the site, asking the property dealers and other home buyers.
MakaanIQ explains the types of offers developers come up with and what they actually mean.
Assured returns: These offers are widely prevalent in small size apartments including studio and 1BHK apartments. The schemes offer a guaranteed return of 13-14 per cent or even more till the developer gives possession of property. From that moment assured returns cease and the owner has to start paying maintenance charges.
Low cost residential plots: Some developers offer cheap residential plots in the suburbs of Tier-II and Tier-III cities. The investment is as low as Rs 3 lakh. This is done mainly to attract the retail investors whose investments in stock and mutual funds have been exhausted. Developers ask for a 95-100 per cent upfront payment under the buy-back scheme for booking the plot. They offer a return of 15-20 per cent with a lock-in period of atleast two years.
Investors must realise the risk involved while putting their hard earned money into these investments. They must analyse the returns others are getting by investing in the same area under the similar schemes.