How Do Assured Return Plan Work

Owing to sky touching price of Delhi real estate, Noida and other religion of NCR has emerged as a real estate hub. The area has grown in terms of infrastructure, in terms of population density and in many other terms which is a parameter of with the development of the real estate industry. 

Well, with the increasing infrastructure many core terminology has emerged in the market such as lease guarantee in Gurgaon or assured returns projects in Noida etc. Assured return plan is one of the most commonly used terminology in the real estate market now days. Well if you are having hard time catching up with this terminology, this article is genuinely meant for you. Let’s find the facts behind the working of these assured return plans. 

Builders require huge budget for the development of different housing projects. Owing to the higher bank interest rate and to evade a long term process, they need an alternative from where they can be able to obtain money easily. 

Building developers directly approach the prospective client for the funding purpose when project is still in the developing state and many approvals are yet to arrive.

Buyers are lured with high discount on the booking of property and also given a commitment of fixed monthly assured income which is assured return projects in Noida with bank guarantee. In such cases of commercial property, once the client gets the possession of his place it is rented out or leased and client get regular income out of it. 

This is considered to be the best investment option for those who want to enjoy monetary gain without taking a risk but there is always a latent risk to be at the safer side, the risk of not keeping up with the inflation. 

You must have seen malls and office complex on Noida expressways and on other nearby areas but let me clear one major fact that none of these malls are 100 percent occupied. So don’t live in a dilemma that if you are investing in the malls and you have been committed for the lease guarantee so there is a fat chance of facing trouble in future. To evade from such situation don’t book your apartment until you have confidence that the project is good for future prospective. 

You need to ponder over certain facts before you jump directly in the game of investment. We need to take a look on the side of buyer as well as on builder’s point of view. 

The Key features of Assured Return Projects are

a. It provides the client with fixed monthly investment 

b. It is relatively profitable than Fixed Deposits.

c. It will avail you with the feeling of ownership of property.

Builder’s Benefit

a. Builder gets easy access to the funds

b. If builder gets the loan from banks he has to submit a security and the rate of interest would be higher, he saves around 6 to 8 percent of expenditure.

In the whole scenario buyers have to wait for the possession time but builder gets easy and cheap access to the funds without looking up to the bank for monetary support. It is definitely not a win-win game unless you have confidence in the area. Because the location matters the most in such situation. 

A general guide line that you should always adhere to is never sign on the dotted lines before reading the terms and hidden clauses completely, to be safe and remain secure.