These Are 5 Traps Developers' Set To Attract Home Buyers

3) Pre-EMI sharing schemes

The meaning of pre-EMI sharing schemes is when taking a home loan, it get disbursed depending on the construction stages. This means home buyers do not have to pay EMIs on home loan till the construction is getting over as well as getting the possession in hand. But, home buyers have to pay the loan interest from the first disbursement. Adding to it, several developers choose pre-EMI sharing scheme where they pay this amount for a period of normally 24 months.

What's the trap?

Before choosing this pre-EMI scheme, home buyers need to ensure that the developer has not padded up the cost. This means, developers might not give any discounts or freebies in the deal. Therefore, it is always better to bargain at the first place when buying a house and then choose the scheme. Moreover, if developer delays to complete the project on time then the time period for pre-EMI payment will get extended and home buyers will end up paying the balance payments all by themselves.

"Try to bargain with the builder to extend the tenure of the scheme till possession and not restrict it to a specific time period. This keeps the pressure on the builder to hasten completion and give possession since he is paying the interest till then," said Samantak Das, director, research & advisory services, Knight Frank India.

Also buyers need to ensure if developer will pay the penalty in case of delay in possession or construction.

Read More: A Peek Into The Homes Of Rich And Famous