Investment advice

Q: In Bangalore, I had seen an advertisement regarding investment in a real estate project. They have already executed about 19 residential projects in Bangalore. I was offered a deal wherein I invest Rs.40.00 lacs for which they will have an Agreement of Sale with registration made with all details of the apartment and the undivided share and register an MOU on a 5% courtfee paper. The MOU is as agreed between us that the apartment is not for sale and is only for surety purpose incase the builder fails to pay me. The size of the 2BHK apartment will be 1100 sq ft and they will offer the apartment as a surety and they will pay me Rs.5 lacs every quarter for 8 quarters and then at the end of the 8th quarter return my capital investment of Rs.40 lacs, all payments suject to TDS. I cannot take possession of the apartment after the 8th quarter.

1.Is this ROI possible by a builder?

2.What kind of documents need I ask from the builder to consult my legal advisor?

3.I heard many builders are practising this model now. Is it true?

Mrs.Nandini Ramaniraj, Apartment Resident

21st September 2012

Investment Advice in Bangalore

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Replies (5)

Hey We have builders that promise the returns and have given us, we have been in this industry for some time now, I agree with small time developers its difficult but with a big brand its possible if you are looking for an oppurtunity please call me so that we can click a deal

Brijesh, Apartment Resident

25th September 2012

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Hi Mr. Rao, as Mr. David has told, check everything.. And you can also enquire about the existing and expected land rates in the area where apartment will be offered to you, whether it is worth of 40 lakhs or not.. And you have to have proper sales deed and copies of every minute detail.

Srikanth, Lucknow

23rd September 2012

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Please check the land where apartment is promised to you is dispute free, and belongs to the builder only, and have a check whether others have bought flats in that project and is it genuine or not.. Check on the legal documents needed for a project, all approvals, Commencement Certificate, ownership documents, etc.

david, Hyderabad

23rd September 2012

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Hey guys, there are many different schemes for investment doubling in some period of time.. But the point is all the schemes cannot be trusted.. Better to take all precautions before investing.

kiran, Mumbai

23rd September 2012

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