Decoding Real Estate Advertising Terms For You

13-Apr-2019    |    Source:    Times Property

Are you looking at an ad stating 'no GST' on that new home, but don't understand the logistics? We decode advertising jargon for you...

Get assured returns till two years:

If you have bought the house for an X amount, the composite price paid by you is higher (if you are an investor). After all, the rules are different for an end user. So, basically the money coming back to you every month is ‘yours only’.


Pay 5% and bank pays next 65%:

Here the buyer pays five per cent as down-payment, then the bank shells out 65 percent and eventually at the time of possession, you pay the remaining 30 per cent. Also, from the time the bank starts paying, you simultaneously start disbursing your pre-EMI (interest on the amount). And the actual EMI (principal + interest) starts post possession of the property.


Zero stamp duty:

It does not mean that there is no incidence of stamp duty charged on the property. The developer is going to pay it on your behalf and has included it in the total cost of the property as well. Technically, you are not getting a discounted rate for your house as the composite cost is inclusive of the stamp duty.


RERA-compliant project:

As per the law, all projects have to be registered under the Real Estate (Regulation and Development) Act, 2016. Hence, it simply means that the developer has registered his project before initiating construction; however, there could be deviations during the construction phase.


1-BHK Rs 40 lakh onwards:

The quoted figure is only the Base Selling Price (BSP) of the property. It does not incorporate other charges, which will ultimately make a difference to the overall cost of your property.


No GST: Under-construction properties usually attract GST, and often developers pass this tax burden on buyers by including it in your final cost of the property. So, technically, he is not really waiving off any money. Also, GST is not applicable

for ready-to-move-in projects or Properties that have been issued a CC.


OC Obtained: Obtaining an OC is often an important milestone in the lifecycle of an under-construction project and market prices usually rise post the OC

being obtained. Through this certificate, the local authorities declare a project as approved

from all departments - fire, safety, water, environment, electricity, etc -thereby giving

comfort to buyers that there is

no risk of delays.


Book now and start living today EMI starts from 2020: Here, the buyer gets to enjoy the newly purchased property much earlier and at a  relatively less initial outgo. However, such schemes often demand that buyers pay at least 25 per cent as booking amount.

Once again, the developer takes the onus

of paying the interest for the pre-defined

period of a year or so. Not to forget, often, such schemes are offered by the developer with a small consortium of financiers or banks. Therefore, it has been observed that bankers charge a relatively higher processing free as a cover for risk.


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