Realtors offer pre-launch, assured return schemes to woo buyers

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Realtors offer pre-launch, return schemes to woo buyers
Slowdown hit real estate firms are leaving no stone untouched to woo buyers for their projects which have been stalled due to lack of funding. A recent report suggest that out of five, at least three firms are offering huge discounts and assured return schemes to sell their projects.

A media report said that some realtors promise discounts on early booking for the projects even as many approvals are still pending. Also in case of assured return, they promise buyer of a fixed monthly assured income after the investment. However, realtors lease/ rent the property to generate that fixed monthly assured return.

Experts said that while such schemes offer good chance to customers to secure a profitable property, investment should only be made with caution by reading all the clauses clearly and after making sure that company is genuine.

In the assured return scheme, a developer generally offers 10-12 per cent interest. Suppose you buy a commercial property in Navi Mumbai selling at Rs 10,000 a sq ft, with an assured annual return of 10 per cent. So, the total cost of a 1,000-sq-ft property comes around Rs 1 crore and the developer will at 10 per cent give a return of Rs 10 lakh annually, till possession.

Some developers also lease out property with a lock-in period for the buyer.

Read more about: realtors
Story first published: Monday, May 6, 2013, 9:30 [IST]
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