For long real estate had been a major area for investment. It has been trusted because most real estate investments have brought good returns to the investors. But the assured return advantage of real estate has made people too eager to invest and this has lead to numerous instants of fraud in the recent past. Here is a lesson for real estate investors: if an investment opportunity sounds too good to be true, it possibly is.Take for example Rajesh, a dweller of Gurgaon could not help but notice the zooming real estate market in his home town. Looking to expand his fortunes, real estate seemed to a good investment option. Highly impressed by the advertisements of a certain real estate company that claimed to have projects being developed in various cities of India, he invested a couple of lakhs into the company’s Jaipur project. He even convinced some of his friends and relatives to do the same. But the day could not be saved till it was too late. A relative visiting Jaipur decided to take a look into the project he had invested in and there was no existence of the project which was actually supposed to be halfway towards completion.Many of you will think Rajesh was a fool not to have investigated the company’s background properly. But sometimes frauds are too elaborate in creating a front to be apprehended at the right moment. But this does not mean you should not invest in real estate. There are just a few precautions you should maintain:Be Wary of Frauds:You will always be more careful if you know about the danger that is lurking. The recent Real Estate (Regulation and Development) Bill can help you to some extant as it aims at arresting the number of small and sometimes false real estate development companies that have mushroomed due to the real estate boom. The bill will make it harder for “fly-by-night” developers to exist in the market but still you cannot be too careful.Therefore before you invest check the builder’s credentials thoroughly. An easy way to verify the builder’s past records is to check the builder’s past projects. You may have little money to invest but it is better not to waste even that amount of money of startup developers who work in the outskirts of cities and suburbs. Try to invest in reputed developers and never go by advertisements. You will rest easier at night.Don’t Be Duped by Prospect:If you invest in a project that is coming up in the center of a metropolis you will make a better and often a massive profit. But often investors who do not have so much to spare believe it will be cleverer to invest in a property located in a place that has prospects of future development. Thus inspite of the investment being small returns will be hefty.This strategy more often than not, works out for investors. But what if you invest in a property on site which has been “proposed” for infrastructural development but the development never happens? Investors and even end-users are often attracted by the prospects of an expressway or airport or metro station coming up at a certain place. Once the development public infrastructure is complete property prices in the vicinity can shoot through the roof. But if the project is developed or even cancelled the loss will also shoot through the roof.To find out the details of the proposed infrastructural projects like expressways and railroads you can obtain the city master plan from the district town planner’s office.Delayed Projects:You may think you are saving money by investing in prelaunch houses. But what will you do if the project that you invested in takes too much time to come up? This is not a very exceptional scenario. Such incidents are especially high in Mumbai, Chennai and Delhi-NCR.In India delay in project completion comes up mainly when the builder faces a crisis in cash-flow or when acquiring all the clearances and approvals take too long. To avoid being stuck in such a situation invest with developers who are reputed for delivering on time or check that all the clearances have already been acquired before you invest. Projects that are almost at the completion stage have a reduced risk of being delayed.Don’t Fall for the Eco-Friendly Tag:When does a building actually become eco-friendly? The rules can be clearly known through the standards set by the Indian green building council. A building with lawns and gardens does not get the eco-friendly tag. There are more norms than just these superficial features and hence do not end up paying more for a so-called eco-friendly building.What is the Right Value?Are you paying the right price for a property? How are you supposed to know? The advice given by most professionals is that you should hire a qualified and professional ‘valuer’. A valuer is a person who can check a property for defects, drawbacks, hidden additional costs and tell if the price you are paying for a property is the right one when compared with the current market price and profit estimated to be made through the deal.You can hire a professional valuer from a financial institution if you do come across an independent valuer.The Real Estate (Regulation and Development) Bill is good news for all those who have been very disappointed after reading that there are so many risks in investing in real estate which seemed like a chicken that can give gold eggs. The bill clearly takes care of various problems that had been plaguing the real estate sector ever since it began to boom. Some aspects of the bill are:
- Projects can only be launched after the developer has procured all the necessary clearances from the authorities. Selling the property will also depend on the same clause.
- Developers cannot take money from buyers unless they get all the permits for construction of the project.
- Builders are barred from putting up advertisements of the project without submitting the details of the project and the compulsory clearances with the website of the regulator.
- Private builders will have to sell houses on the basis of carpet area and not on the basis of super built up area which is often vague and overstated.
- Developers will have to open separate bank account for every new project and all the expenses for the project should come from that particular account. The money gained from the project will also have to be kept in that bank account
- Developers will have to produce actual photographs of the site as they are. If not then they can be penalized of an amount of up to 10% of the project cost or they can even be jailed.
- If the developer cannot deliver the property within the scheduled time, the buyer is entitled to receive a full refund along with interest. The same is applicable if the developer does not adhere to contractual obligations.
The Registration Act, which is often accused of being the root of all illegalities in case of real estate dealings will also be amended soon and will be open to general public viewing.Inspite of the bill which is constructed largely to profit the buyer, be on your watch when investing. Real estate can still be your chicken with gold eggs if you know how to be on the safe side.займ на карту без отказов круглосуточновзять кредит онлайн