Why Buying a Property from First Time Developers can be a Good Idea?
May 22, 2017 Home Trading Steps
Buying a property is everyone’s dream and according to experts, it is better to buy the property from a renowned developer. It is true as there is less risk involved. Most the buyers do not want their property to get delayed unnecessarily and therefore choose to go with the huge builder. But on the other side, it is actually advantageous to buy the property from a first time developer. Even though there are risks involved, there are certain aspects that cannot be missed.
1. They only have a single project in hand:
Since the first time developers do not want any risk with their project as well, they have a single project in their hand. They give all their attention to it and make sure that all things promised are delivered.
2. The quality of project:
First time developers do not want their quality of their project to be compromised as the future of their other project depends on the one on hand. If the buyers give out a negative review on the construction quality, it will hurt their reputation badly.
3. Better discounts:
To get maximum buyers, the first time developers are ready to give maximum discounts. Buyers can negotiate a good discount for the property.
How to make sure if the first time developer is reliable?
Here’s the list of things a buyer can do to make sure the developer is genuine and won’t put the project on hold:
1. Background check:
Do the backgrounds check on the developer, their past projects. Make sure how the construction is going on and whether the project is in pre-launch or near completion stage.
2. Bank funded:
Check if the project is funded by the bank or not. If it is then the good news is that your investment money will never go to waste as the builder will never face a liquidity crunch.
3. Documents:
Make sure that the developer has acquired all the clearances from the associated departments for the project and that they aren’t in any name or ownership litigation.
4. Ask for purchase document to be drafted as per your convenience:
Most of the purchase documents are drafted inconvenience of the builder. If the developer is a first timer, the buyer can negotiate the agreement and get it drafted in their interest.
5. Go for PLP:
If the property construction is in the very initial stage and the buyer is taking the loan from the bank for the same, then it is better to go for Possession Linked Plans (PLP). This will keep the investment exposure small, even if the project gets delayed.
1. They only have a single project in hand:
Since the first time developers do not want any risk with their project as well, they have a single project in their hand. They give all their attention to it and make sure that all things promised are delivered.
2. The quality of project:
First time developers do not want their quality of their project to be compromised as the future of their other project depends on the one on hand. If the buyers give out a negative review on the construction quality, it will hurt their reputation badly.
3. Better discounts:
To get maximum buyers, the first time developers are ready to give maximum discounts. Buyers can negotiate a good discount for the property.
How to make sure if the first time developer is reliable?
Here’s the list of things a buyer can do to make sure the developer is genuine and won’t put the project on hold:
1. Background check:
Do the backgrounds check on the developer, their past projects. Make sure how the construction is going on and whether the project is in pre-launch or near completion stage.
2. Bank funded:
Check if the project is funded by the bank or not. If it is then the good news is that your investment money will never go to waste as the builder will never face a liquidity crunch.
3. Documents:
Make sure that the developer has acquired all the clearances from the associated departments for the project and that they aren’t in any name or ownership litigation.
4. Ask for purchase document to be drafted as per your convenience:
Most of the purchase documents are drafted inconvenience of the builder. If the developer is a first timer, the buyer can negotiate the agreement and get it drafted in their interest.
5. Go for PLP:
If the property construction is in the very initial stage and the buyer is taking the loan from the bank for the same, then it is better to go for Possession Linked Plans (PLP). This will keep the investment exposure small, even if the project gets delayed.
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