Buying a house in a city like Gurgaon is not an easy task. With increasing prices of properties in Gurgaon to the never ending charges that are to be paid, one needs to search for the right payment plan that fits your criteria.

The home buyers have only one question in their head that which payment plan will be the best for them and assure that there will be no hassles in future. Along with this, the home buyers are worried about other things as well. This includes- Is there any hidden motive that is involved when a payment plan is offered by a developer? Will they get duped if they opt for the possession-linked plan?

All these questions make a home buyer nervous as well as unsure about their future investments. Also, if you too are looking for an answer for all these questions read on the experts to shed some light on it. There are various kinds of payment options available for the home-buyers while they are looking for sealing the deal:

Down-payment plan

It is said to be the most conventional scheme of availing a home loan. As per this plan, the customer pays the booking amount of10-15% to the builder of the total cost and then pays 80-85% of the total amount in about 30-90 days of the booking day. Then the remaining 5-10% is paid during possession along with the additional charges. You should definitely choose this plan if the project is near completion, you have sufficient money and trust the builder or developer.

Plan linked to construction

As per the name under this plan, the payment is linked to the stage of construction. The buyer has to pay 25-30% of the total or the purchase price within 90 days of the booking day and balance the instalments on completion of various different stages of construction. Practically, the customer should always opt for this scheme if at all it doesn’t have liquid cash available and the project has just begun its construction.

Plan linked to time

It is said to be the conventional plan as per the builders. The customers are bound to make payments on deadlines. The buyer is under a contractual agreement with developer or builder which is based on the pre-determined calendar set by the developer and the progress of the project has nothing to do with this. This plan can be used if the construction is in middle ages and the customer has liquid cash in hand but has around 20-25% less than the total cost to pay the booking amount.

Flexi-payment plan

Flexi-payment plan is the combination of construction-linked and down-payment plans. The buyer has to pay 10% during booking, another 30-40% within next 30 days of booking and the rest 40-50% is to be the pain in stages which is similar to construction-linked plan. The remaining 10% is to be paid at the time of possession as these are one-time charges. For the customers, typically, it is the safest mode as it provides the assurance as well as the flexibility of payment.

The experts say that whenever a buyer opts for any of the payment plans outlined above, it is important that attention is paid to the details in the developer’s contract and it takes a wise decision as per that.

Balances and Checks

After the decision of the home buyer of which payment plan or scheme to opt for, it is important that fine prints are read by the buyer. It is also recommended that the buyer involves a professional lawyer to scrutinize the property documents between the buyer and developer. This will definitely ensure that the buyer is protected and there is the complete understanding of the penalties, interest payments, hidden charges, etc.

The realty market has been uninspiring currently, and thus, the developers, to attract the fence-sitters have offered the buyers enticing schemes. But, it is important that the home buyers go for any one of the plans only after conducting thorough check. The experts have pointed out three critical safeguards that the buyers must put in place before going for any of the above-mentioned plans:

• The developers should have all the approvals in place
• The buyers need to be careful while investing in any of the projects especially where the approvals are yet to come.
• Make sure that the developer does not have two different pricing structures

If there are two different payment plans or pricing offers (one for the possession-linked plan and another for the construction-linked plan), then the developer has already come up with the cost of funding that is applicable for the possession-linked plan. This clearly means that the buyer is indirectly funding the builder or developer and that definitely isn’t an attractive scenario.

Completely read the fine print

Generally, people do not read those few lines that are placed at the end of the document before making an investment but there is a lot of risk of losing money due to such oversight.

It takes many years to find your dream home. Thus, one should never be in hurry and read all the agreements carefully. One can also consult a property advisor who can be trusted to buy property at an excellent price. Always keep these small things in mind while making an investment in property as it can change the course of one’s life forever.