A. Bankers
- 1. Will push subvention schemes to you. They get a huge cut running into lacs from the builder and you get guaranteed delayed construction.
- 2. Will push fixed-rate loans when interest rates are high and RBI is likely to cut rates (e.g. current scenario) and vice versa. Don't get trapped.
B. Brokers ...this is a huge list
- 1. Will not stop at their 1-2 percentage commission from buyer/seller etc. Will actively discourage direct contact between parties and try to extract a differential between ask and bid prices often running into lacs.
- 2. Will pay you 'bayana' using a fake 'buyer' friends of theirs and get a worthless sales agreement signed with 3-4 months payment period. They will then try to find a 'murga' / actual buyer and pocket the differential. Verify the buyer, put penalty clauses, and limit the payment period to 30-40 days.
- 3. Will push whichever builder project pays highest commission regardless of your needs. Read IREF with a fistful of salt everyday before you purchase anything.
- 4. Will make false promises of pie-in-the-sky developments (e.g. Metro) that will take decades to materialize by pointing out news clippings etc. Don't rely on worthless paid-articles especially in TOI and HT.
- 5. Will try to fool you into buying upper floors for new launches by claiming the project is 'sold-out'. In 99% of cases this is false... talk to multiple brokers, also direct to builder, etc. When you put your chequebook on the table and act pricey, these units will magically appear. Be confident!
- 6. ...to be continued
C. Builders ...yet another huge list
- 1. Will launch project after project to roll over advances from one to fund the other ones. Avoid DP plans like the plague and don't get lured by discounts.
- 2. Will try to push pathetic CLP plans where bulk of payment is gone before half of construction. Always remember that a 'good' CLP plan is a sure-shot sign of that rare breed viz. decent builder who will likely give you your house of dreams in reasonable timeframe and with reasonable quality. Seek these out and if necessary, pay premium for these sort of projects.
- 3. Will make arithmetic 'mistakes' in their demand letters. Double-check these and then get your spouse / parent to triple-check before paying a penny.
- 4. Will actively hide negatives of projects (e.g. disputed land, HT lines, ganda nalla). Forums like IREF can really help in this case since brokers will also not be much help.
- 5. ...to be continued
D. People on IREF
- 1. Will sometimes (thankfully not always) post to mislead you for their own purposes. Use valuable forums like these, but don't follow advice blindly. Always be skeptical, get multiple opinions, and think for yourself.
... others should add more.
-v
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