How to Avoid Fly-by-Night Developers
Apr 12, 2017 Home Trading Steps
Real estate is widely considered to be one of the safest forms of investment due to its tendency to provide phenomenal returns. However, in Spite of real estate being a low risk investment entity, lack of awareness by home buyers can indeed put home buyers into a vulnerable spot waiting to be exploited by scamsters out there. A quick look at national dailies suggests the increase in real estate crimes by fake property developers, popularly known as fly-by-night developers.
Even in the age of easy access to all kinds of information related to projects and their respective developers, home buyers often fall into the honey-trap led by small time developers. We, as potential home buyers, always look for cheapest options available in the market. These fly by night developers generally offer very low pricing as compared to the prevailing market rates and thus get successful in attracting a horde of home buyers. However, what we don’t realize is that such type of savings often translates into huge losses in the future.
Small time property developers lack experience in the property market. They are often financiers or politicians turned real estate developers and have no vision whatsoever to develop the project successfully. These developers only have the agenda of making some quick money off unsuspecting buyers. Such fly by night developers have no interest in building their reputation in the market and thus do not hesitate in compromising the quality of the project throwing the allottees into complete jeopardy. With no standard procedure in place, quality of construction is substandard thereby risking the core structure of the building.
With some very ambitious promises coupled with affordable rates, people generally fall into the trap of scamsters in real estate. Moreover, the acceptance of black money in the property transaction only works in the favour of these developers.
There have been thousands of cases registered by home buyers against such fly by night developers across the country. In a majority of these cases, customers generally did not get possession of their properties for several years or were left unsatisfied with the end result of their purchase.
It is very important for the home buyer to strictly follow the philosophical rule of “Prevention is better than cure”. The home buyer must verify several aspects of the project and its developer before investing his hard earned money.
Before buying a property, always check for these facts:
1.The reputation of the builder/developer in the market. Also, have a look at his past completed projects.
2.Beware of aggressive property pricing. Always be aware of the prevailing market rates.
3.Beware of impractical and unrealistic promises put forth by the developer. Most of the times such promises are made only to tempt the home buyer to invest his money.
4.Check if all the major lending institutions have approved the project.
5.Verify the project plan sanctioned by the local municipal authorities.
6.Always insist on legal paper work.
Even in the age of easy access to all kinds of information related to projects and their respective developers, home buyers often fall into the honey-trap led by small time developers. We, as potential home buyers, always look for cheapest options available in the market. These fly by night developers generally offer very low pricing as compared to the prevailing market rates and thus get successful in attracting a horde of home buyers. However, what we don’t realize is that such type of savings often translates into huge losses in the future.
Small time property developers lack experience in the property market. They are often financiers or politicians turned real estate developers and have no vision whatsoever to develop the project successfully. These developers only have the agenda of making some quick money off unsuspecting buyers. Such fly by night developers have no interest in building their reputation in the market and thus do not hesitate in compromising the quality of the project throwing the allottees into complete jeopardy. With no standard procedure in place, quality of construction is substandard thereby risking the core structure of the building.
With some very ambitious promises coupled with affordable rates, people generally fall into the trap of scamsters in real estate. Moreover, the acceptance of black money in the property transaction only works in the favour of these developers.
There have been thousands of cases registered by home buyers against such fly by night developers across the country. In a majority of these cases, customers generally did not get possession of their properties for several years or were left unsatisfied with the end result of their purchase.
It is very important for the home buyer to strictly follow the philosophical rule of “Prevention is better than cure”. The home buyer must verify several aspects of the project and its developer before investing his hard earned money.
Before buying a property, always check for these facts:
1.The reputation of the builder/developer in the market. Also, have a look at his past completed projects.
2.Beware of aggressive property pricing. Always be aware of the prevailing market rates.
3.Beware of impractical and unrealistic promises put forth by the developer. Most of the times such promises are made only to tempt the home buyer to invest his money.
4.Check if all the major lending institutions have approved the project.
5.Verify the project plan sanctioned by the local municipal authorities.
6.Always insist on legal paper work.
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