By Soniya Gaonkar on Nov 23, 2021 10:57:00 AM
One of the most critical considerations to make when purchasing a home is whether to purchase a property that is still under construction or one that is "ready to move in." Buying a property that is still under construction is risky, but there are loads of issues with buying a house that is ‘ready to move in. More or so, one can’t escape these problems.
But you can definitely escape the problems associated with traditional payment plans. Traditional payment plans for under construction and ready-to-move-in properties necessitate the application for a home loan and the payment of an EMI each month, which might cost you lakhs of rupees. Here are some more drawbacks of traditional payment plans:
A. Heavy Interest Rates on Home Loans
- The current home loan interest rate is 7.5 percent, which means you could end up paying up to Rs 10 lacs in interest over the next 2-3 years till you get your house.
- You've already paid 15 percent of the property's cost in interest.
- You're basically squandering your money, and it's a bad investment.
B. Payments Paid Resulted in a Loss of Potential Cost
- You will pay up to 80% of the total cost before taking possession.
- That is, you can invest up to Rs 39 lacs and yet not be able to live in or rent out the home.
- You will earn Rs 3 lacs in interest per year if you maintain these 39 lacs in a fixed deposit at 7%.
- You are not only losing this potential profit, but you are also paying the above-mentioned house loan interest rate.
C. There Will Be No Rental Income Until You Take Possession
- Rent income is a fantastic option to help with EMI payments.
- You have no rent income if you don't own the property.
- Depending on the location and size of the property, you could lose Rs 1.8 lacs in annual revenue.
Let's say the value of your home increases by 15% in two years. Because of the cumulative amount lost due to interest paid on a home loan, missed rental income, and lost ROI opportunity if you had invested the money elsewhere, your actual and effective price appreciation is zero or negative on day one of possession.
That’s why one of the best ways to buy a house is to buy a house under the Kohinoor Pay-on-Delivery payment plan. Under the Kohinoor Group’s Sada Sukhi Raho philosophy, a Pay-on-Delivery plan will benefit home buyers tremendously.
The Following Are the Features of Kohinoor Pay-on-Delivery:
- Only 10% of the total cost must be paid at the time of booking.
- Making a builder-buyer agreement necessitates a 10% deposit (BBA)
- There is no need to take a loan from the start; instead, a loan for 90% of the remaining payment can be taken.
- Before 2-3 months of actual possession, an offer of possession is made.
Advantages of Kohinoor Pay-on-Delivery Are:
- Property can be purchased for a small sum of money. For example, if a home costs Rs 70 lacs, you can reserve it for only Rs 7 lacs.
- At the moment of ownership, you can earn up to 220% on the property.
- You can resell the property even before you take possession, meaning you will never have to pay the remaining 90% and will just profit from price appreciation.
- You save interest rates because you don't have to make any payments or EMIs on your home loan. For example, if you take out a 70-lakh home loan at 7.5 percent interest, you will spend Rs 5.25 lakh in interest per year. Based on the cost of your house, you can easily save Rs 5-15 lacs with 10:90.
- Most builders have online booking options for the 10% deposit, which is really convenient.
- There is minimum documentation and no need to go through a tedious home loan application process, which reduces trouble and paperwork.
Note: With Kohinoor Pay-on-Delivery, you will get premium 1, 2 & 3 BHK properties in Pune at 24.81 Lac - 1.19 Cr.* (a.i.)
Look at the comparison table below to understand the fundamental difference between a regular payment plan and Kohinoor pay-on-delivery.
|Comparison Parameters||Pay-on-Delivery||Regular Plan|
|Apartment Cost||60 Lacs||60 Lacs|
|Number of years until possession||3 years||3 years|
|Upfront payment during booking||6 Lacs (10%)||9 Lacs (15%)|
|Additional Payment Until Possession||0||30 Lacs (65%)|
|Loan Amount before possession||0||51 Lacs (85% loan amount)|
|Interest paid until possession||0||
11.4 Lacs (7.5% for 3 yrs)
|Total Investment before possession||6 Lacs||39 Lacs|
|Effective Cost of Apartment on day of possession||
6L booking + 54L due)
39L paid + 21L due + 11.4L Interest)
|Apartment price in 3 years||73 Lacs||73 Lacs|
|Profit||13 Lacs||1.6 Lacs|
Return on initial investment(at the time of possession)
(13L return after investing Rs 6L)
(1.6L return after investing Rs 39L)
|Pay-on-Delivery vs Regular||8X better return than Regular||-|
How Does Kohinoor Pay-On-Delivery Work?
Pay-on-Delivery is literally as simple and easy as it sounds. Applicable for many of our 2 BHK in Pune or 3 BHK in Pune, Pay-on-Delivery will ease your home buying journey like never before. Take a look at how it works:
- Book your home with just a 10% payment.
- Register the agreement within 15 days.
- Pay 90% and take possession.
New Residential Projects in Pune by Kohinoor are offering a Pay-on-Delivery payment plan.
Kohinoor Sapphire 2
Premium 2 BHK flats in Tathawade Pune
58.8 Lacs - 59.1 Lacs* (a.i.)
Premium 2 BHK homes with top-of-the-line amenities will be available in Kohinoor Sapphire 2, Tathawade. With these 2 BHK flats, you can now live the life of your dreams while staying within your budget.
There are amenities for kids, teenagers, and even elderly members of the family, ranging from Party Lawn to Multipurpose and Gymnasium. We believe that your daily life is influenced by your surroundings just as much as it is by the interior of your home.
Premium 2 BHK flats in Hinjewadi Phase 3
46.9 Lacs - 55.60 Lacs* (a.i.)
The project combines excellent architecture, innovative design, and competitive pricing. Purchasing a flat here would fulfil all of your dreams of owning 2 BHK flats in Hinjewadi Phase 3 while also allowing you to live a luxurious lifestyle. Kohinoor Coral Hinjewadi Phase 3 brings greater value, grace, and comfort to everyday living with its superior lifestyle features.
The project is also adjacent to important city locations such as Baner, Wakad, Kothrud, Shivaji Nagar, and others. Everyday life at Kohinoor Coral Hinjewadi is a wonderful escape into the woods, surrounded by vegetation.
Premium 2 BHK Flats In Bibwewadi
74.6 Lacs - 77.63 Lacs* (a.i.)
Kohinoor Jeeva Pune is a highly secured premise with superior 2 BHKs for you to live a life that is more than just ordinary. These luxury spaces, which are adorned with 15+ lifestyle amenities, boost your everyday lifestyle like no other.
Kohinoor Jeeva Bibwewadi provides space-efficient residences that are protected by multi-tier security 24 hours a day, seven days a week.
1 BHK - 24.81 Lacs* (a.i.)
2 BHK -35.04 Lacs* (a.i.)
Abhimaan Township is a real estate cluster in Shirgaon that is set to fulfill the hopes of hundreds of families. It is a vision that has become a reality. Shirgaon, located between Lonavala and Pune, provides a close window with a view of nature all around. This township has been designed to meet the needs of the complete family. To ensure just the best, this township is constructed with only the finest raw materials and furnishings.
Every property is unique, and you can make your own decision based on the information provided above. Regardless of which plan you choose or which property you buy, do your homework on the builder and the property, and be aware of the pitfalls we discussed in this blog post.