Aditya Kumar works in a multinational company in Greater Noida. He and his wife want to buy a property in Noida or Greater Noida. They have enough funds to invest in a decent under-construction housing project of their requirement but the rampant cases of under-construction projects being stalled and developers going bankrupt are giving them nightmares.
While developers and brokers continue to paint a rosy picture of how safe an investment will be, is there any way people like Aditya ascertain the financial health of an under-construction housing project on their own?
India’s top cities are currently burdened with some 6.48 lakh housing units stuck in various stages of construction. No wonder, new buyers looking to buy homes are either avoiding under-construction housing project and are taking more time to save enough funds to invest in a ready-to-move-in homes.
However, not all under-construction projects are faulty. Investing in a good one at the good time can turn out to be hugely profitable and wise decision. Here are some ways by which homebuyers can ascertain financial health of a housing project:
Detailed investigation on the website of Central Registry of Securitization Asset Reconstruction and Security Interest of India can tell a buyer whether the property is mortgaged with any bank or housing finance company or not.
Also, find out if the builder has the authority to transfer the undivided share of land to each flat owner and the entire plot to the society, on completion of the project.
Click here to visit the site.
Real estate regulatory authority has started playing pivotal in shaping the real estate industry in India. Each state has their own authority and the corresponding websites which in many cases are mine of information. Be it any project information like builder, agent, project plan, contractor name, architect name, structural engineer, development work, project bank details, land/plot details, or any other relevant documents- all the details are available online and are easily accessible to anyone.
Homebuyer can assess the current status of the under-construction housing project he is interested in and if the project details are missing or the whole project is not registered on RERA site, it is wise not to choose that project.
Homebuyer should do a basic research if the home in which he is interested in is not ready for possession at the time. Basic information like company which is constructing the project, how many other projects are being built and how many are delivered on time, number of stalled projects if any, general market perception of the developer, ongoing court cases against the project’s developer, etc. can be dug out easily from internet and social media.
Ministry of Corporate Affairs:
Documents given by the developer should also cross checked by the homebuyers before signing on the dotted lines.
“Buyers can verify the documents submitted by a company with the Ministry of Corporate Affairs. These documents are publicly available on the website of MCA,” ET Realty quoted Abhilash Pillai, partner, Cyril Amarchand Mangaldas, as saying.
Here is the link of the site.