Title: The bank or financial institution provides financial support (loan) only if the title is clear. A property should not be subject to a pledge or mortgage. The sale agreement clearly mentions the obligation for the seller to transfer ownership of the property on behalf of the buyer immediately after the completion of the full payment of the property to the local town hall. Normally, the difference between the price point in a category 3 and 4 is minimal. As I suggested reader in my article, Buy Resale Under Construction Property under real estate construction in construction to buy property in the secondary market. Basically, I was referring to Category 3. In most cases, the buyer is trapped in Category 2, that is, the housing of investors. Although the flat investor is with a slight discount compared to the price point of the owners, but still much higher than the market price. It all depends on who controls the stock of the project. The link between Category 1 (builder), category 2 (investor) and brokers/agents ensures that the price of real estate remains artificially excessive. Prices become more realistic in projects with more buyers in Category 3, i.e. end-users.
On the contrary, real investors need the project at 3000 rsfs. and they will have nothing against, the property at market prices, that is 4500 Rs. rs. for sale. Depending on the entry price of a real investor, they can even sell at a lower price in order to maintain liquidity. Also, there are not too many buyers on the market. Like equity investors, real investors have a fixed profit margin in mind. Once they have reached this level, they leave and look for new investment opportunities. Real investors never stick to a project. They buy, sell and book profits.
Even if this is not always true. “Sir`s is a flat investor,” my real estate agent told me last week. I posed as a model for my story to find the real truth behind the Flat investor. The entire 130-unit building was empty, even though it was ready to move in. The real estate agent tried to put a brave face and told me that all the apartments are bought by investors, except 4-5 units are with the owner. As a final buyer, I would have been impressed, but as a real estate professional, it made me more skeptical. As I shared in my previous article on real estate prices that most brokers are now channel partners of the prime contractor. They advance projects at a higher price. The commission is directly related to the sale price. In my case too, two projects in the field of my research were the common recommendation of all brokers. Personally, I didn`t like any of them. Now, this love story between the owner and the real estate agents/agents is becoming triangular.
The so-called “investors” complete the 3rd angle of this love story. Logically, every buyer is an investor. The flat investors I receive in this contribution are “special” investors. They are usually model investors such as friends and family members of the owner. Their only role is to drive up house prices.