Alluring payment plans are driving housing demand; but there is more to this than meets the eye
Almost every developer in Mumbai is offering payment plans that say “Pay 5 percent now. And rest on possession.” These sorts of payment plans are the biggest reason for housing sales to show traction in the last three months for under-construction projects. It sounds easy, attractive and enticing. But it’s important to fully understand the nature of these plans before embarking on the journey.
Pay 5 percent now. Rest on possession
The first thing to be clear on this punch line is that in a dominant majority of the cases – this does not technically mean “Pay 5 percent now. Rest on possession.” In between these two steps – is a critical component. That component is: Taking a home loan. This home loan, however, will have one different aspect to it – a tripartite agreement between the buyer, lender and also the developer. The key element is that on this home loan, the pre-EMI will be serviced by the developer until a particular date or event.