CCI Warned The Developers To Mend Their Ways

Buy sell Property & Real Estate Investment Guide

Buying Property Tips#1: Choose the Right Location
Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.
Buying Property Tips#2: Study the Local Market Dynamics
It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.

Applauded by charging penalty on one of the renowned real estate developers, DLF in Gurgaon, Competition Commission of India (CCI) received around 200 complaints against real estate developers. Of these 200, 15 complaints were marked as official cases. Home buyers dragged the big brand names such as Hiranandani, Omaxe Group and Raheja Developers to competition watchdog. Most complaints were cited about delay in delivery and biased agreement between buyer and builder.

An official at CCI said that injustice is quite possible to the buyer by opposite party but the remedy to this injustice does not lie under the section 3 or 4 of the Competition Act. Section holds the intent to curtail anti competitive practices & tactics. The objective of this section is to prevent the abuse of dominance in the market. One of the CCI member said that there is huge competition in real estate market and the methodology adopted by realty players to sustain in the market is anti competitive and abuse of dominance is witnessed by them.

Buying Property Tips#3: Choose the Right Property
Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.
Buying Property Tips#4: Do the Math Properly
Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.
Buying Property Tips#5: Consider Additional Expenses
When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.

Scanning the practices running in the market, around 20 entities were spotted. Hence CCI is expected to soon finalize its order on illegal business methodologies adopted. However, CCI watchdog has completed the personal hearings of entities in real estate sector with respect to alleged customization and anti competitive tactics. The Competition Commission of India issued notices to all the entities and sought written submissions and is supposed to finalize a decision on the case to be taken soon.

The builders are being in quested for inserting one-sided clauses favoring the companies and against the benefits of buyers in agreements for sale of apartments, condominiums, flats and other residential properties and other anti competitive practices. Earlier also, CCI watchdog slapped a penalty of Rupees 630 Crore on DLF which was further challenged in Supreme Court. Hiranandani Infrastructure & Real Estate Company, Today Homes, Omaxe Group, Kolkata West International City, Raheja Developers and Exact Homes are few of the real estate players which have been caught in the net and freed later. Most of the companies were charged against the case of delay in delivery.

In case of project delays, CCI official iterated that after opening the advance bookings, most of the real estate builders buy land somewhere else halting the development of the advance booked project. Mahagun Group is marching ahead by standing on top for more than four decades.

Buying Property Tips#6: Inspect the Property
To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.
Buying Property Tips#7: Pick the Right Financing Option
While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.
Buying Property Tips#8: Invest through Equity
One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.
Updated: May 2, 2018 — 3:02 am
Property Investment Buy & Sell Guide © 2017 Frontier Theme