- Are you buying properties under UDS, pre launches?
- Think twice before buying one
- The price is low, but will they construct it?
- If the construction is not completed, what is the use even if property costs less?
- Most agents cheat customers for cash incentives and high commissions
- Do not fall prey to agents, and waste your hard-earned money
King Johnson Koyyada: The cost of a flat is just Rs 1,800 per sq.ft in Kompally, Rs 2,400 in Madinaguda, Rs 2,499 in Bowrampet, Rs 3,000 in Kollur and Rs 4,000 in Kokapet. Wouldn’t it be great, if someone sold the flats at these rates? You jump at the opportunity and grab one. But is this possible in the wake of rising construction costs? Most of us are aware that it is not possible. And yet, we keep looking for someone who can sell a property for such prices or at least for a discounted price. Taking advantage of the condition of middle-class and salaries families, some fraudsters in the real estate sector are looting them. From small-time real estate agents to some reputed builders, all are involved in this scam.
With a closer look at the real estate sector in Hyderabad, one can observe that some builders indulge only in constructing apartments and others focus only on layout development. However, some real estate agents have joined hands with a few realtors and builders, to raise curtains for a new way of cheating people and making money. Wherever they can find land, these people pay 10 per cent of land cost as an advance to the land owner, sell the land as flats in UDS or pre launches, and then pay the remaining 90 per cent amount to the landlord. If the money collected from the buyers is entirely used to pay the landlord, how would they start construction and when would they finish it?
Beware of UDS and prelaunch builders!
Most of these UDS and prelaunch builders are, using majority of the money collected from the buyers to the land owners. The rest of the money is being used to buy luxury cars or houses for themselves, as well as lands in other locations. Moreover, the money is not being used for building the apartments at all. They are planning to complete their projects either through sale of the land that they purchased from the money collected from their customers or kickstarting new UDS/pre launch projects and using the money collected from buyers in the second project to finish their first project. However, the State government has now suspended the UDS registrations, while the RERA authorities are imposing 10 percent of the project value as fine for UDS/prelaunch builders. If the realtors end up paying the penalty imposed by the RERA for any projects, it will be nearly impossible to complete the project. The buyers in the remaining projects too would face similar challenges. So, people must think twice before purchasing properties under UDS or pre launch offers.
10 percent commission
One must not fall for the promises made by the real estate agents and invest their life savings in purchasing properties under UDS and pre launch sales, as they would love to clinch the deal by hook or crook. The reason – the agents get 10-15 percent of the 100 percent money you pay for the project, i.e. if you pay Rs 50, he will get nothing less than Rs 5 lakh. A maximum of Rs 7.5 lakh will be handed over. If he/she could sell five flats a month like this, he/she would earn as much as Rs 25 lakh every month. Hence, many agents are abandoning their regular jobs and donning the role of full-time real estate agents. Even if they sell one flat per month, they are earning at least Rs 5 lakh. If they sell at least two flats valued Rs 30-40 lakh per month, they can easily earn Rs 6-8 lakh which is more than Chief Minister K Chandrasekhar Rao’s monthly salary. Under the current circumstances, agents are earning more illegally than a developer can earn a month.
