Buy Home Now, Pay Later, Say Developers

Published: May 19, 2009 at 9:49 AM | Author: Administrator
News Source: 14 May 2009 - Business Standard

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Realtors are trying to grab every opportunity to improve cash flows. For instance, Unitech, Omaxe and Raheja Developers are giving up on recovery of penalty on late payments so that customers do not back out. In the last one year, a lot of people have lost their jobs or taken salary cuts.

Also, many buyers had booked their first homes on installments. In the past six to nine months, realtors have seen a number of them defaulting on payments. A recent report by IDFC revealed that Unitech had witnessed delayed payments by buyers for already booked properties.

Omaxe Ltd, which charged 18 per cent penalty for the first two months of default and 24 per cent after that, is now offering a waiver to customers who have a good record. Over the past year, the debt of all real estate firms has risen and they do not want to leave any stone unturned to gain cash from potential customers by insisting on a penalty.