Everybody needs a house. We invest a large chunk of our capital in getting a house. But what will happen if we are cheated. In this post I am going to discuss about these issues and the countermeasures.
In the last two decades the real estate business have grown exponentially. The builders started more construction than their capacity. If a company can build 100 flats it started to construct 1000 flats in the hope that as one by one their flats will be occupied they will use the capital to complete their project. But after 2014 real estate business rapidly faced steep slowdown due to steep fall in demands. This happened because the number of constructions are much higher than demand and secondly cost of flats have gone very high. As a result most of the construction work halted. Just move in NCR you can see vivid examples. These companies have became bankrupt as they have invested their entire capital in the business.
Now to sell off their incomplete flats they are giving lucrative offers like no maintenance charges for 1-2 years, free split AC in 1-3 rooms, book your flat in just Rs 25000.
Should we buy those flats?
No, there was a long discussion on this issue in news channels and they gave their feedback based on these points:
1. Since these companies are bankrupt they are not in a position to complete the flats in next 50 years.
2. Generally a flat is only given to customer when it is completely ready like complete water supply, electricity, maintenance etc. But these companies are finding it difficult to even sell their flats so how they will complete their construction.eg JP group could not complete their construction because they could hardly sell around 25-33% of their flats(Times of India report).
3. Indian Judicial system will take a long time to provide the customers their rights.
What is the solution?
Only buy ready to occupy flats. You can also buy second hand flats. Due to more supply the house rent in our locality of 1500 sq ft houses have gone down from Rs 14500 per month to Rs 9000 per month. And the cost of flats have also gone down. So if you do a little bit of research you can get ready to occupy flats at reasonable price. Just contact a professional property dealer he can help you.
In the last two decades the real estate business have grown exponentially. The builders started more construction than their capacity. If a company can build 100 flats it started to construct 1000 flats in the hope that as one by one their flats will be occupied they will use the capital to complete their project. But after 2014 real estate business rapidly faced steep slowdown due to steep fall in demands. This happened because the number of constructions are much higher than demand and secondly cost of flats have gone very high. As a result most of the construction work halted. Just move in NCR you can see vivid examples. These companies have became bankrupt as they have invested their entire capital in the business.
Now to sell off their incomplete flats they are giving lucrative offers like no maintenance charges for 1-2 years, free split AC in 1-3 rooms, book your flat in just Rs 25000.
Should we buy those flats?
No, there was a long discussion on this issue in news channels and they gave their feedback based on these points:
1. Since these companies are bankrupt they are not in a position to complete the flats in next 50 years.
2. Generally a flat is only given to customer when it is completely ready like complete water supply, electricity, maintenance etc. But these companies are finding it difficult to even sell their flats so how they will complete their construction.eg JP group could not complete their construction because they could hardly sell around 25-33% of their flats(Times of India report).
3. Indian Judicial system will take a long time to provide the customers their rights.
What is the solution?
Only buy ready to occupy flats. You can also buy second hand flats. Due to more supply the house rent in our locality of 1500 sq ft houses have gone down from Rs 14500 per month to Rs 9000 per month. And the cost of flats have also gone down. So if you do a little bit of research you can get ready to occupy flats at reasonable price. Just contact a professional property dealer he can help you.
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