Reading about Insolvency proceedings against Top Developers and The Best of the Best turning into NPAs in the newspapers and media makes me feel sad. The media did a Great Job of bringing the truth to people – but did it also scare the consumer away?
The real Estate Industry contributes 6-7% to our country’s GDP. It is also the second-largest employment generator. The bright side of the Industry also needs to be placed on the table and the consumer needs to be guided on how to proceed with his investment decisions in Real Estate.
Thankfully, the new Regulations and Compliance like RERA have created a framework for transparent working. Every detail of the Project and the Developer, the finances, and the construction status are available online. The authority is on the watch all the time. “Customer can be at Peace”. “SUGGESTIONS FOR CUSTOMERS” Customers Must Follow The Following While Making A Purchase Decision (Residential Property):-
Simplest of All: Check the project is Registered with RERA (Please make the effort of going to the RERA Website and checking all Project details viz Land Permissions, Finances, Construction Schedule, etc).
The Project must be approved by Leading Credible Financial Institutions (Remember the Banks Stake is Close to 80% compared to our equity investment: The Bank Better Be Sure).
The purchase decision while buying a Residential Property is different than one buying a Commercial or Retail Property. For Residential, I have experienced that the decision is mostly driven by emotions. However, the decision must also consider the proximity to work, school, hospital, public transport, market – distance to friends and relatives, etc.
Now the watch steps – once you have decided on the area viz location of your choice, check the developers working in that area – make a comparative analysis that covers not only the price size, etc but also the payment plans.
Developers can be put in 3 categories A, B, and C based on their experience, their delivery and financial health (Past and Present – there are cases where the ones who were Excellent Performers are Carrying a Big Baggage and are not able to perform in the current time period). The payment plan where the developer intends to construct first and then demand a payment can be worth considering provided all other conditions are met.
Also, you may want to negotiate a payment plan with the choice of your developer which follows the same rule: build and then ask me for money. The prices in Residential Real Estate have been stagnant for a couple of years now – they have corrected in some places and are now available at reasonable valuations.
The Indian Economy is doing just fine: growing at 7.2%. Residential Sales are up 6-7 % in 2018. Foreign funds have been investing billions of dollars after the setting up of RERA. The time is appropriate and you should make your investment decision now. (Pausing for my readers to digest the above …….) I will be happy to assist you in your decision-making process (buying decision) based on more than 15 years of experience in the industry.