Sounded too good to be true after speaking to a couple of Marketing and Sales people from different developers. My mom has sold off a small piece of property and thus I am on a land shopping mission in Gurgaon.
It's crazy out there. A consumer is bombarded with so much information that most of them go with who advertises the loudest.
So what's wrong with the advertised schemes. As usual the answers are in fine-print that never get advertised.
How it works is - lets suppose you have 50 lakhs to invest. You give it to a developer who is constructing an IT park in the SEZ. You will receive 50,000 Rs per month (1% per month or 12% annually) till the time the property construction is done. Then you become the owner of the property.
There is a catch though. You are locked in for a long period where you can only rent your property through the developer. The developer signs you up for the difference in present market rent and the future market rent. Which means that if the rent today is x Rs per sq. ft. and in future since its projected to rise to y Rs. per sq. ft. you are supposed to get a portion of (y-x) Rs. per sq. ft. I say portion because most of the builders will take a percentage out (usually 30-35%) for taking care of the developed property and finding you the party to rent out your property.
How the scheme works in favor of Developer(s)
1. They essentially get money for 12% annual rate while if they go outside, it will be easy double of that.
2. They have you locked in for at least 9-10 years. Your balls are owned by them.
3. They wont be honest with the rent they will get from the companies. So they will tell you 'y' as less. The contract will be signed for less and the actual rent will be more.
So be very cautious of the assurances. You have been warned.
October 22, 2009
August 13, 2009
February 02, 2009
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