Buying a home is a very critical and biggest decision of your life. After car, buying a home is the most expensive thing you buy in your lifetime. You make huge investment to buy a property. If you are borrowing the loan, the monthly EMIs you will be going to pay. These EMIs will consume the maximum portion of your salary. While taking the loan you should be conscious about the repayment process. Repayment of the loan will be an issue for many buyers, which discourage them not to buy the property. But as more and more builder and property agents are coming into the real-estate market and throwing different payment modes of payment to make the process convenient for customers. The different payment options such as down payment plan, construction-linked plan, flexi-payment plan and time linked payment plan. You should always calculate the benefits and the cost of property while choosing any mode of payment. At the time of buying a home always keep these options in mind and the charges levied if you fail to make the payments on time.
Pre-approved home loan:
When you think that it is not affordable to buy a home because of the shooting price of the property and higher rate of interest. The different mode of payment as down payment plan, construction-linked plan, flexi payment plan and time linked payment plan and construction linked payment plan come as a relief for future buyers. Under these options you can book your dream property. It is a win-win situation for both the builders and customers who actually buy it.
Traditional mode of payment:
Under this mode of payment plan you are required to pay 10% to 15% of the purchase price when you book your property, another 80% to 90% within a given time-frame. The remaining amount you can pay within 45 to 60 days. The remaining amount of the cost of the property include stamp duty, registration fee and other legal charges. The major risk with these kinds of property is delay in construction and delivery of the property. At times, you receive a property with some changes, which was not similar to the project shown at the time of booking. Delayed in the construction also increase the price of property you have booked. In such cases, you are bound to pay the increased price of the property.
To avoid such issues builders have come up with different options of making payment. They offer you free period for payment till you will get possession. Even some ask you to pay EMIs once you get the possession of your home. These are some easy way out to lure the customers to buy property.
Here, you are supposed to make the payment in different phases. For example, the builder ask you to make minimum 10% to 15% booking amount, then next 10% or 12% of amount is required to deposit at the time they start construction and remaining money they charge in phases once they complete different floors. This is an easy way of payment and has many advantages of choosing the under-construction property.
In this mode of payment, you are supposed to make the payment in three phases, first installment of the money will be deposited at the time of booking, second is required at milestone and third and final payment will be done at the time of possession of the property.
Flexi payment and construction linked mode of payment is good option if you don't have enough funds as you are required to deposit the money in phases. But, it will increase your financial burden as you can't start to repay the principal amount untill you will not get the last amount sanctioned from the bank. Till the time you are supposed to pay the interest linked on your loan. This way your interest outgo will increase. In traditional mode of payment you can save money in interest outgo. You receive the whole amount from bank within 30 days after approval of the loan. You need to make the payment to builder within 45-60 days. Here, you will get the possession of the property sooner compared to under-construction property. Therefore, you start repayment of the loan once you get the possession after 60 days or after making the payment.
So, choose a mode of payment as per your requirements, and make a smart move to save money on interest outgo on the whole amount.