Indians have an insatiable hunger for real estate. Property buying is seeing as the safest and fruitful form of promised investment. But, this often leads many to invest in options that are risky and meaningless. The drive to make quick money and transactions are so firm that we often overlook other involving factors. That is the reason why offers in real estate, promising assured returns have increased tremendously followed by the Reserve Bank of India tightened norms to fund projects by its developers. Also, with real estate law, this might have curbed such offers to a great extent in the residential segment but small builders are still fighting and offering an assured return on investment in the commercial segment since they have to no other way to collect funds as banks may not be willing to lend them money otherwise.
Aiming to protect the savings of the investors and banning unregulated deposit schemes and protecting interests of depositors, we have Unregulated Deposit Schemes, and Chit Funds (Amendment) Bill, 2018. With this, all Cash-seeking developers have to register themselves with designated authority and developers who are already regulated will have to re-register themselves.
Before you fall prey to such too-good-to-be-true promises, here are certain things that you should consider: Firstly, the rates of property that offer such assured returns are invariably much higher than rates of similar properties. Secondly, the lucrative amount would look much less if you calculate tax implications on it. The money earned through such schemes are called income from other sources, and on this, one cannot claim any deductions. The same is not the case with rental income. Thirdly, with risk factor involved, this investment does not look promising for the salaried, working-class or the financially unstable class. Only investors who have a high-risk appetite should venture here. Forth, since the money comes in the upfront value as it comes from your pocket, make sure the assured return comes in the form of bank guarantee and not in the form of cheques that bounce. Lastly, before investing, always check the developer brand and his track record.
With many brands available now. With 119.5 million sq. ft. of delivered space in real estate and construction contracting, Omaxe is one of India’s leading and trusted real estate companies. Present in 27 cities across 8 states, in last 32 years, staying true to its motto of ‘turning dreams into reality’ and delivering quality and excellent real estate spaces, while ensuring customer satisfaction and redefining lifestyle, Omaxe has delivered some landmark projects and engineering marvels that have created a niche in both luxury and affordable segments and more importantly has brought smiles in the lives of millions of people.
