* IMPORTANCE OF WHERE ? WHO? WHOM? WHAT ? *

 

WHERE???

Across the world big migration is taking place from villages to cities. Human is a social. People like to have company with like-minded and need livelihood for sustainable living.More people like to live where basic facilities like water, Electricity, drainage, safety,roads, Schools, temple,Markets and good transportation system in nearby areas.

If you are having property in heart of city or fully developed areas than it can be easily resale. If you have property in out skirt of city area it has less chance of easily resale.Property which are having location in upcoming developing area can have high chance of appreciation in longer time.
WHAT?
 are you purchasing flats, bunglows,tenaments, office , shop , factory  or land?
It mainly depends on your age cycle , your purpose, your present and future need.
WHO & WHOME ?
Most people are not clear with whom they are investing or purchasing property. Clarity is must in your mind as it is most important factor.People whome they deal are important factors.People who sell or buy their property has their reputation and reasons.People may in migration stage,investor,liquidity issues,Ageing ,security and so on....

*Homebuyers, don’t fall for subvention schemes*

“No EMI till possession” promises turned the dream of owning a home into a nightmare.

Think about it—purchasing a home, be it an apartment or a piece of land to build a dream home, is probably one of the biggest personal finance decisions you and I will ever make. Given its size (financially) and innumerable complexities, falling into silly financial traps is quite common.

One of the most important ones to watch out for is the interest subvention scheme for under-construction properties. Let me tell you how it all started.

It was in the year 2010–11. Real estate companies were still nursing their wounds from the 2008–09 financial crisis.

They had liquidity issues to start new projects. Getting finance from banks was difficult, and even if they managed it — considering the risks within the industry — they were charged with higher interest rates.

Homebuyers weren’t too keen either. Sentiment was in the dumps.

Then an innovative idea started gaining traction in the home-buying space.

What was the problem for the builders? Funding.

So, instead of taking out an expensive commercial loan to build a project, what if the builder could tap into the funding via future homeowners?

The buyer applies for a home loan, and a large portion of the sanctioned amount is released to the builder — often right at the very start of the project, sometimes even before much of the construction work has begun.

Banks rarely refuse to lend money to individual home buyers, and the interest rates on these loans are also lower than those offered to real estate companies.

But how do you convince buyers to sign up and take a loan even before a foundation is laid?

Here came the carrot: The builder said, “Take the loan, give me the money, and until the property is built and handed over, we will pay the EMI (interest) to the bank on your behalf.”

This ad is just an example of how subvention schemes were marketed back then

Remember, the interest the builder is paying, in this case, is still lower than what they would have paid had they taken a loan from a bank directly.

Buyers jumped at the offer. They just had to pay the small upfront cost, usually 10%- 20% of the house price, and didn't have to service the EMI until possession was given.

House sales went up. This subvention scheme became the talk of the town, especially in the northern region.

Of course, the builder charged an extra amount for the plans under the subvention schemes — but who cares?

Buyers were excited about the EMI-free period till possession. It sounded great.

A win-win for the buyer, banker, and builder.

Until the music stopped.

Builders began defaulting on EMIs. Projects were stalled — sometimes due to poor cash flow management and sometimes because funds meant for one project were siphoned into another.

Since the loan agreement was in the buyer’s name, when the builder stopped paying, it was the buyer’s credit score that took the beating.

At the end of the day, the bank knocked at the borrower’s door. Legal notices were sent, asking them to start paying EMIs.

The result? Buyers faced a double whammy, paying rent for their current accommodation while also servicing EMIs for a house that remained just a skeleton of a dream.

As you read this today, many people are still caught in this web, trying to fight their way by filing complaints against builders, going through courts, and seeking relief from lenders while their dream home turns into a nightmare.

What were the regulators and the government doing when all this was happening?

Sensible lenders had seen the writing on the wall long before. Deepak Parekh, then chairperson of HDFC Ltd, had warned in 2013:

“Construction finance should not, through any innovative structuring, be available to developers at the rate of interest being offered on individual home loans. Also, complete up-fronting of construction finance to developers, even before the ground is broken, is dangerous.”

In September 2013 itself, the RBI, if not directly banning the subvention scheme, advised banks not to disburse the loan amount upfront to builders.

Instead, the amount must be released to builders only based on a construction-linked payment plan — that means releasing payments only on hitting specific milestones.

The idea was that this would at least save borrowers from a huge liability if something went wrong, and also create an incentive for builders to finish the project on time.

With this directive, there were fears that house sales would crash. But those fears were misplaced: subvention schemes resurged between 2015 and 2019.

Again in 2019, NHB (National Housing Bank) asked housing finance companies to stop entering into such subvention agreements.

Today, these schemes, where builders pay EMIs till possession, are mostly gone in their old avatar.

So, what's in it for you now?

“at least in the north side of the country, whatever is sold is constructed — it's not the other way around — whatever is constructed is sold."

In other words, under-construction properties are still the norm, and builders still look to buyers for funding.

I spoke to experts in the real estate space 

They confirmed that subvention variants still exist, especially in tier-2 and tier-3 cities, if not in tier-1. Vishwas says such schemes are likely to ramp up whenever sales slow down, as builders look for ways to attract customers.

In one version, builders nudge buyers to take the loan upfront and transfer it to them, sweetening the deal with a so-called “discount” on the final price (as against the earlier practice of paying EMIs until handing over the property).

Another version promises assured returns until possession — the builder pays a fixed sum every month to buyers, almost like rent, until the home is handed over.

The past showed that falling for such incentives is like walking into a spider's web. Next time you are offered such incentives, remind yourself that if it sounds too good to be true, it probably is.

Also, these schemes may not offer borrowers a huge financial benefit, especially given the risks involved. The incentives will not move the needle in the long run.

Where’s RERA in the picture?

Just a few weeks ago, this Second Order newsletter outlined the rights of homebuyers under RERA.

If you read that piece, the obvious question you’d have is — “RERA rules require that 70% of the money collected from buyers be kept in an escrow account and released to builders only as construction milestones are achieved, so how can a builder ask for the entire loan amount upfront?”

That’s a valid question.

But reality is sub-optimal. RERA’s effectiveness varies from state to state, and the rules often look better on paper than in practice.

I am not saying it. Just recently, on September 12, the Supreme Court gave a judgment on issues surrounding past under-construction property sales. As part of the order, the court didn't mince words, saying that RERA authorities should not be reduced to "toothless tigers."

"It is imperative that RERA authorities are not reduced to toothless tigers. They must be equipped with adequate infrastructure, empowered tribunals, and effective enforcement mechanisms so that their orders are implemented swiftly, in letter and spirit."

Not just that, the apex court advised the states and RERA to create a conducive environment for genuine home buyers, treating ‘right to shelter’ as a fundamental right.

“..the plight of tax-paying middle-class citizens paints a disheartening picture..An average homebuyer may be a teacher, lawyer, doctor, IT professional, or government employee who has poured his or her hard-earned money into the pockets of a developer. For such individuals, a stable roof over their family’s head is all they desire. The anxiety of not having a home despite paying a fortune is bound to take a serious toll on health, productivity, and dignity.”

“ The right to secure, peaceful, and timely possession of one’s home is therefore a facet of the fundamental right to shelter enshrined under Article 21.”

“The State carries a constitutional obligation to create and strictly enforce a framework wherein no developer is permitted to defraud or exploit homebuyers. Ensuring timely project completion must be a cornerstone of India’s urban policy.”

That's a huge acknowledgment of the plight of individual homebuyers and a pretty strong way of saying that RERA and the government need to act on behalf of homebuyers.

While the law is evolving, we must ask the hard questions before signing on the dotted line.

Financial incentives on everything — from ‘no-cost EMIs’ on credit cards to the biggest purchase of our lives, a home — must always be taken with a pinch of salt.

That's why ready to move in is Best when you deal in property or buy land peace and bulid as per your choice with best quality standards... REAL OF REALITY...

1-One and only

N-New

G-Gorgeiuos

P-Positve

N-Nice

E-Energetic

T-Transparent

Https://www.1NGP.NET

Nomination....legal heirs....REGISTER Document..GIFT DEED....banakhat...MOU... ASSIGNMENT....CONTRACTS....BLOOD RELATIVES....ALL ABOVE DIFFERENT AND HAS OWN IMPORTANCE...