It is a popular concept in Mumbai to buy flats from investors. He mostly finds them through the builder himself, after the builder has exhausted the stock in his hands.
What is an investment floor?
An investment apartment is one in which an investor establishes an agreement with the builder to buy a certain apartment at a certain future moment. In exchange for this promise, he pays a small token amount toward the price of the apartment. This deal happens even before construction begins. Thus, the price agreed for the floor is also much lower.
Benefits of investor flats for all parties
investors:
The benefit of this deal to the investor is the fact that you can purchase it at a very low rate and need to make the payment much later.
Builder:
The main benefit for the builder is the cash flow that accrues to him even before the start of the project. This will ensure the smooth execution of the project. Plus, he’s making sales before the goods are even produced.
Consumer:
It is not a problem for a consumer to buy a flat from an investor. As the contract will be made with the builder himself (if the purchase is prior to possession) the contract will be for first sale and not for resale. Depending on the needs of the investors, the prices become negotiable. Recently, I heard that an investor’s flat was trading at almost Rs 1000 per square foot less than the builder’s. Isn’t that cool?
Therefore, when looking for new apartments, do not rule out investor apartments. They are as good as buying from the builder himself.