When you are planning to buy a house, it is very important to choose the right mode of payment, the most difficult part in buying the house is the payment plan, because of which investors back out from purchasing a house. Whenever you are planning to buy a property in mohali, it is very important to discuss the various modes of payment with the builder and understand them very carefully to avoid any further confusion after you bought the house. In India the popular modes of payments are:-
- Down payment plan.
- Construction linked payment plan.
- Felix payment plan.
- Time linked payment plan.
Let`s analyse these plans in details
Down payment plan:- Under this plan generally to have to submit 10% of the total amount at the time of booking, 80% payment within the next 60 days and the remaining amount at the time of possession, however the thing to keep in mind here is that when you are making the final payment it is not just the remaining amount you have to pay but also 5% of the total amount as stamp duty for registration, property taxes, society maintenance charges, club house charges, parking charges any other charges applicable and payable at the time of possession.
Construction linked plan:-
Under this plan at the time of booking you have to pay 10% to 12% of the total amount, rest is payable in different stages which is linked to different stages of construction, the moment construction reaches a particular stage you will get a demand note for payment generally it is around 20%. This plan is beneficial because it is linked to the performance of the builders in mohali, however the loan gets a bit costlier simply because till the time you get the final possession of your house you only have to pay the interest of the loan amount and the actual repayment starts only after possession hence the term of the loan gets longer and becomes expensive.
Flexi payment plan:-
This plan is a combination of the both Down payment and construction linked plan, under this the buyer needs to make one third payment of the total amount and the rest is paid according to different stages of construction, the remaining amount is paid at the time of possession.
Time linked payment plan: –
Under this plan bank loan is taken and payment made according to a specified time and made proportionately, however the biggest risk here is that if there is delay in possession of the house, it affects your repayment plan in this scenario it is important to calculate how much interest you will further incur and how much can you save.
It is imperative that you do not invest in any property without properly studying various payment options, prepare yourself beforehand on down payment, EMI, possession date given by the builder and you will end up making a smart deal.