Risks of paying more than 50% of flat price by cash?

Q: Hey,

What are the risks of buying property (Apartment) paying more than 50% cash upfront? As per builder the completion date is 1.5 years. What would happen in case builder stops the construction for unforeseen reasons? Will I be able to take any action against him? What factors should I consider before making payment?

At the same time what are the advantages of taking 70% housing loan instead of paying cash? Would bank take any rights / action against such a builder?

Sandeep

rayapudisandeep,

5th February 2012

Buying property in Hyderabad

flat

risky

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Replies (1)

There can be a risk if you are taking home loan from the bank and after that the builder stops the construction work in the middle. You have to pay your interest for the home loan you have taken. Before entering the agreement check with all the documentation so that later there will not be any issue. If the builder have stopped the construction work for any unforeseen then you cannot take any action against him.