Which option is better Down payment or Construction link plan for home loan?
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Which option is better Down payment or Construction link plan for home loan?
It depends - if you go for a Down payment plan, builders generally give a discount ranging from 10-15% on the base price (that is a plus point here but then your EMI starts from day one and if there is a delay inconstruction, you tend to end up giving more interest). However if you opt for a CL plan, one gets to have that flexibilty in making payment to the builder as and when he demands. For example if there is a delay in construction from the builder, the demand for next installment would be extended from his side, So this factor gives that extra cusion. I would suggest you make full calculations on both the pricing for full term period of your loan and then decide.
Quote:
Originally Posted by mintz
If possible, go for a fully-constructed flat or near to completion flat. It will cost more to your pocket, but you can be assured that WHAT-YOU-SEE-IS-WHAT-YOU-GET. Now a days, most builders alter the building plan along the way of their construction without informing the buyers, and chasing the builders is not a easy job given the monetary and political might they have. Most of the builders ( even big one's) are cuming up with pre-excavation plans and their date of project completion is mostly 24 months . In the time of recession, blocking the hard-earned money with them for 24 months carries a huge risk. I believe tht the cost of the flats will come down in the coming months and you can stuck a better deal with the builders ( BIG no no to Middle-men) if u can hold on for some time. Reality bubble has burst and the effects are started to trickle down. Having a hard bargaining attitude will surely help.
In current senario when the due to recession builders are not able to complete the projects on time go for Construction link plan.Quote:
Originally Posted by mintz