A
Arjun Iyengar
posted on 18 MayAre construction-linked plans actually good for investors?
Construction-linked plans are confusing for investors, honestly. I'm so fed up of renting near Baner, finally looking to buy a 2BHK in Kirkatwadi. Godiva Promoters Llp ke project mein CLP offers hain, but I'm wondering if a bigger down payment option is actually smarter for better ROI. Builder discounts toh spot pe milte nahi, na? What are the actual hidden costs beyond PLC and stamp duty that crop up later? Pura all-in cost estimate kaise karein? Any experiences with this payment structure in Pune?
#payment-plan#investor#hidden-charges#pune#kirkatwadi
Comments
Yaar, I'm also looking at a project in Kirkatwadi, not Godiva though. My agent says CLP is good because you pay as per construction progress, so less risk if builder stops. But I'm worried about the interest cost on the construction loan. Is it true that CLP projects are generally priced higher per sqft to absorb the builder's financing cost? And what about the interest subvention schemes, are they actually beneficial or just marketing gimmicks? Hidden costs like utility connections, society formation charges, maintenance deposits – yeh sab kab tak batate hain?
U11 is right about subvention. Most builders stop paying after a fixed period, or if construction gets stuck beyond a certain point. Then the burden falls on you. Best to avoid unless it's a very reputed builder with a solid track record and the terms are crystal clear.
U4, yes, CLP projects often have a slightly higher base price per sqft because the builder is essentially financing a part of your purchase, which they pass on. Interest subvention schemes can be beneficial if the builder pays the pre-EMI till possession, but read the fine print carefully – sometimes it's only for a limited period, say 12-18 months, or if construction gets stuck, the burden falls on you. For hidden costs like utility connections, society formation, maintenance, parking – builders usually disclose these closer to possession. Always ask for a detailed, all-inclusive cost sheet *before* booking. My advice: add 10-15% buffer to the quoted price for these extras, just to be safe.
Totally agree, this is so real. I had a nightmare with CLP in Ambegaon Budruk with a lesser-known builder. They kept delaying the project by almost 1.5 years, and I was stuck paying both rent for my current place and the pre-EMIs on the home loan. It was a huge financial strain. Always, always ask for very clear possession dates *in writing* and strong penalty clauses for delays. And definitely check Godiva Promoters ka RERA track record and past project completion history pehle.
Yeh builder delays ka problem toh har jagah hai. RERA bhi sometimes help nahi karta.
U3, which builder was that in Ambegaon Budruk? Need to be careful. What kind of penalties did you manage to get, if any? Did you check their RERA status before booking, and did it help?
CLP toh trap hai bhai! Down payment is always better if you can manage it. Builders delay projects aur EMI chalu rehti hai. It's a huge mental and financial burden.
Same here. CLP is just for builder cash flow, not buyer benefit. They make it sound like a good deal, but it rarely is.
Sahi kaha U2. My cousin got stuck in a CLP project near Sinhagad Road. Builder ne 2 saal delay kiya, aur uski EMIs chal rahi thi bina possession ke. He regrets not going for a bigger down payment option. Saved up for a bigger down payment, that's my advice for sure.