Tuesday, June 17, 2008

Buying Property from a builder in India

Buying Property from a builder in India

Today, builders have registered their strong presence in Indian real estate market. Buying property from a builder takes away much of the stress that a buyer faces otherwise. It affords the buyer the luxury of moving into a fully completed home or office. A Builder can be a person or an enterprise that takes on the responsibility of scouting for land, getting permits, buying land, registering it, constructing a building and finally selling it within a fixed timeframe.

Builders' standing in the Real Estate market:
CREDAI (Confederation of Real Estate Developer's Associations of India) is the apex body of the organized Real Estate Developers/Builders across India. It represents the Developers/Builders across India and communicates with the Government authorities for the formulation of proactive policies for their profession.

* CREDAI encourages the Developers/Builders to increase their efficiency in the development/construction activities by introducing the latest technology.

* Member Builders/Developers have to abide by its ethical code of conduct, which is self-imposed and mandatory, in order to bring integrity and transparency to their role in Real Estate development.

Many Builders operating in Real Estate India are members of the Builders Association of India, one of the objectives of which is to address the issues that Builders come across from time to time.

Strategies that can work to your advantage:

Builders today, are engaged in the construction of major housing and commercial projects across the country. An awareness of when to buy makes buying from a Builder an attractive proposition for those thinking of buying real estate in India as it entails the below benefits:

* Buying in a slow market: At times, a builder has surplus inventory and would like to sell off at reduced prices. You as a buyer can benefit from it, defying the market trend.

* Buying early in the development stage: Buying during the early stages of construction, at times can assure you a much lower price as the earlier you buy, lesser are the chances of your facing the impact of appreciated property values. Moreover, there is an increased chance of negotiation from your end.

* You can also go for a pre-launch residential project where the Builder raises capital for the project by taking advance bookings from interested buyers after getting the required building permits, but before beginning construction.

* Buying the last home in the locality: As the finance structure of the construction industry affords selling the last home in the locality even at a price below the going rate, the benefit is ultimately passed on to the buyer. Also, the builder wants to sell it readily and quickly.

* Sub-leasing to builder: It is a commercially viable option to buy unit models as they are subject to many levels of upgradation and the best of craftsmanship is employed to attract buyers. If you are contemplating buying a house in India, you have the option to buy one complete with decorated furnishings.

* Buying when the property will be part of a Society: If the Builder has plans of helping form a co-operative society, this may be advantageous for you as members are protected under the Co-operative Housing Society bye-laws. Alternatively, if the builder is going to write the property in favour of the Society at a future date, it will serve your interests to buy such property.

* If you decide to buy from a Builder, make it a point to have a lawyer by your side to seal the deal with success. You can browse through the tips we offer for striking the best deal as well as precautions that should be taken while doing so. Also included is a list of documents that you should seek from a builder during and after your transaction.

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