• Sensitized buyers will buy property in RERA projects
• Buyers are advised against paying the 100 per cent amount
• Verify the credential of builders whether they will be able to complete the projects
• Find out what is real capacity of the builder. Is he capable of doing it?
• Buyers should take a step after ascertaining all facts
REG News, Hyderabad: The million- dollar question is will the private builders resist the temptation to hike the prices of lands in the backdrop of government itself is hiking the land prices by conducting auction of government lands?
The private builders are hiking the prices of land to fulfil the demands of the land lords, whose demands appear to have no limits at all. Therefore, the private builders, promoters and developers blame the land lords for hiking the prices. Whatever is the reason, owning a roof over the head of a middle class and poor family in Hyderabad has been burdensome. Taking advantage of the helpless condition of these sections of society, those who perpetrate irregularities come with attractive offers claiming to offer properties at cheaper prices.
They are wooing the gullible investors from middle classes and poorer sections of society to pay money 100 per cent upfront so that they would be able to step into their dream house. Comparing the prices, they would say that a flat that would cost Rs 1 crore in the RERA-registered project would cost only Rs 50 lakh in their projects under the UDS scheme.
Whether buying a flat under UDS Scheme would really be beneficial to buyers?
Paying 100 per cent of the cost of the property upfront what would be beneficial to them?
Which is the best solution – buying property under the UDS scheme or in RERA-registered projects?
A 3BHK flat costs Rs 50 lakh in UDS scheme, while it costs Rs 1 Cr in a RERA project
The upfront amount payable Rs 50 lakh in UDS Scheme Rs 10 lakh in RERA properties.
Is it necessary to pay any amount afterwards – Not necessary – Depending on the progress
Time of completion of project — Uncertain — 3-4 years
Will the project construction get stalled? – Yes – No
What is the reason? Legal problems – Legal problems ruled out
What about permissions? Uncertain -Project launch will be only after getting approvals
The buyers should realise one thing here that a buyer paying Rs 50 lakh for a flat in UDS scheme will forfeit Rs 1 lakh per month towards interest (calculated at 2%). In 4 years, he or she would be paying the builder under the UDS scheme Rs 98 lakh. It would mean as good as buying the flat in a RERA-registered property. Many people are missing this logic. In a UDS scheme, in case of legal problems, approvals are not easy to get for the project. Some times, the civic authorities would not give permissions at all.
Because of this, the buyers would have to lose their money. Local bodies would not grant building permission, if the land seems to be developed under the UDS scheme is in conservation zone or in the prohibited zones for building construction activity.
The legal problems would lead to protracted court battles. Therefore, the buyers would be at a loss to buy property in such projects. Therefore, the buyers should take each minor aspect into consideration before buying the project. Otherwise, the buyers’ hard-earned money would go down the drain.
