Beware of these sales claims used by builders

Q: Especially in festive season when you buy a house.

jitu jayswal,

21st December 2015

Buying property in Mumbai

buying a house

festive season

builders claims in festive season

Follow Discussion

Also see discussions for

Mumbai Buying property Buying property in Mumbai

Replies (4)

On the other hand, a tie-up also does not promise the best home loan rate. What it means is that you are more likely to get a loan from those banks than with others.

Sunil Sharma, Noida

21st December 2015

Comment

So, we should believe in "What you see is what you get" policy. The sample flat may look like your dream home, but the reality is quite different. Clever use of lighting and furniture make the flat appear big. The walls are thin, in some cases just plywood partitions, which add precious inches of carpet area.

Deepankar Godbole, Mumbai

21st December 2015

Comment

So, be careful of these tricks and use your own brain. Builders follow no norms while cancelling bookings. While some deduct 10% of the booking amount, others quote the same figure on the "cost of property". Yet others deduct 20%, whereas smaller players may penalty the entire booking amount.

Diptarishi dev, Kolkata

21st December 2015

Another lure is the attractive financing schemes that builders offer by tying up with banks and housing finance companies. In most cases, you will get a better deal by approaching the bank directly. Don't look for freebies and try getting a cash discount.

Deepankar Godbole, Mumbai

21st December 2015

Hi everybody,
Sunil is right and occasionally, a builder will debate that the area where his project is has not been hit by any correction. But there will be signs. Account for inflation while calculating the price rise in the past year.

Shivshankar, Delhi-NCR

21st December 2015

Comment

Thanks for the information Shivshankar,
It is also found that if a new project has 2BHK flats priced at Rs 42 lakh, when the going price is Rs 50 lakh, it probably has something to do with size. Average apartment size has come down in the country. So, don't compare the price tag, but the price per square foot.

Diptarishi dev, Kolkata

21st December 2015

Thanks Diptarishi,
While some builders do offer compensation, the amount offered is nowhere close to the EMI you are paying. Some builders lapse in a clause, which wrap them against any claim. Others fix an upper limit for compensation they will pay. And then there are the bounced cheques.

Shivshankar, Delhi-NCR

21st December 2015

True, and the the fact is developers are more desperate to sell than buyers are to buy. The only cheap source of money for developers is sale of projects. This is where discounts come in. Given that the situation is unlikely to get better anytime soon, builders will continue to offer discounts to attract buyers.

Sunil Sharma, Noida

21st December 2015

Hi,
I didn't get what you want to say. Will you please explain a bit?

Rishi Dev,

21st December 2015

Comment

Hi Rishi,
Here are the few claims you should cross check before making a deal or your first property. A builder will tell you real estate prices and ever go down. That is not true. Don't fall for forecast of high rentals either. No one can predict future rent. If you keep away the EMI amount in a safe investment option, you will be able to save a higher down payment amount when you lastly take the jump.

Sunil Sharma, Noida

21st December 2015