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14 November 2010

Taking a Home Loan for House Under Construction.

Taking a home loan for house under construction can have various loop holes which come in the lime light only later. Homes are built by people and only houses can be built by builders. All of us understand that buying a new home is a very emotional aspect in an individuals life. Many of us consider taking a home but the finances are never sufficient as the rates of property are shooting up till the sky. Home loans came as a boon for us and we can think of purchasing that dream home with loan amount which other wise we would not have dreamt of.
The property under construction always has lesser per square feet amount than purchasing an outright  house. The booking amount is calculated per square feet according to the rate going on in that particular area. Loans can be taken according to this rate and EMI's calculated for the convenience of payments every month for the period or years decided according to the loan repayment schedule. Every thing is calcualted till the last detail and every month the purchaser goes and views the progress taking place in the construction. Many of the people may be staying in rented flats and also have to pay the EMI amounts along with their rent.
What happens when the building under costruction comes in some legal dispute?
well it becomes very difficult to pay the EMI's as well as the rent for an increased number of months. The customer is also very afraid about when the decision of legal matter will be settled and when they will take possession of their new flat. Definately legal battles take up much more time than expected and is always very stressful for the home loan borrower. Sometimes the whole propertyy is taken over by some other builder and they have their own terms and conditions. Here the customer has the option to take an amount offered by the builder and leave but it is always lesser than the house amount that can be got on purchasing the flat. If the purchaser goes in for continuing then they have to amend the rules and prepare fresh documents according to the hand over of property.
Hence it is very much advisable to go in for purchasing flats from a reputed builder. Find out about the reputation of the builder over the years. Observe their ongoing property projects. Also consider visiiting their successful and completed projects to have a view of how the final flat will look. Taking a bet on new builders may come at a reasonable amount and even lesser per sqare feet rate as also they may offer may latest amenities but it is always the insecure future that has to be considered before purchasing a new flat and going in for a home loan.

4 comments:

  1. Hello Rizwana, you have pretty good insight about housing loan. Thank you for sharing with us. It is very informative and I am sure lots of people will get benefit from your article. Keep writing.

    Regards,
    Apoorva

    ReplyDelete
  2. Thanks a lot Home Loan in Lucknow for the encouraging comment Welcome to Home Loans Simplified Facts!

    ReplyDelete

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