How to Protect Yourself from Risky Realty Investment

Project delays:

Under construction residential developments have become a frequent issue in real estate sector and home buyers are getting trapped into this problem.

"At times, the developer acquires land, launches a project and uses the booking amount to buy another land. Buyers who have opted for construction-linked payments do not pay installments until the construction reaches the promised stage. This creates a cash-flow crisis for the builder," said Manish Aggarwal, Executive Director, investment services, Cushman & Wakefield India.

"For instance, in Gurgaon, all real estate projects need to get a licence. When a builder advertises a property for sale, it mentions the licence number as well," says Aggarwal. If a project in Gurgaon does not have the licence number, stay away from it.

For home buyers, the wait to get over the possession continues. For instance, home buyers who booked a flat way back in 2009, was assured that the project will be ready by January 2011, which was further postponed to deliver by January 2012 and now again has been delayed till June 2013.