Does RERA safeguard a buyer’s interest for under-construction projects?

How do you secure your future which is everything but certain? It doesn’t serve any purpose if people reside as tenants and save up on their income on a monthly basis to achieve short-term goals. The essence of a profitable future is to make sure your money grows over time and not accumulate. Residents are now gradually realizing the importance of investing in the property market and are transitioning to become real-time home owners.

Prestige Smart City

Prestige Smart City by Prestige Properties is one such project which is located to perfection at Sarjapur Main Road in Bangalore. The city has always enjoyed impeccable weather and contributes to employment benefits for IT professionals. This has led to builders and developers to come up with IT infrastructure and other commercial and residential projects. Known as the Silicon Valley of India, Bangalore is engulfed by IT powerhouses which is a bonus for young IT professionals who earn big and potential investors who can look for profitable tenants for long-term gains. Prestige Smart City comprises of apartments that are nothing short of architecture marvels that ensure stunning views of landscaped gardens scattered around the project. However, with the introduction of laws by RERA and new tax reforms, realtors are forced to devise and formulate new strategies that abide by the rules and regulations set by the regulatory body. On the contrary, this has benefited developers as they can now come up with affordable housing options to release their excess inventory. Be it ready-to-move-in projects or under construction projects, these rules apply to every realtor who are prospective developers. Residents, especially first-time residents are more inclined towards investing in under construction project as they can estimate the property development every step along the way. This gives a sense of confidence that their money is being invested with the right property developer. On the contrary, customers do not have a choice when they plan to invest in ready-to-move-in projects.

The scope for development is less and the price is normally at the higher end. It is important that residents realize the importance of the location as well. Emerging localities like Sarjapur has encouraged social infrastructure development which helps increase the land value and appreciation. With locations like Marathahalli and HSR in close proximity, residents can commute with relative ease. There are a number of residential Apartments on Sarjapur Road which have been closely looked at by prospective investors as over time they can expect returns for a secured and a fulfilling future.

Strict product deliverables contribute to rising residential demands

The implementation of rules by RERA has brought about the change in the property market. With residents looking for affordable housing structures, realtors are now required to meet up with the demands so they don’t stock up on their inventory. As far as under-construction projects are concerned, realtors should set clear expectations and deliver on them on time so they don’t run up paying hefty penalties. This helps the investors as they can plan on other aspects like approaching for home loans, partnering with interior designers and other vital expenses. Introduction of RERA rules has led to smooth transition of how the market used to function and how it operates now.  

Resgistration of the property to be developed with RERA

This is another aspect that can help residents while approaching under-construction projects. These are favorable in the sense that investors can get valuable information about every factor about the project which is often neglected. Before we get into all this, it is crucial that residents have a brief idea about RERA and its implications including an in-depth knowledge about the property market. The real estate market is never the same. It changes and fluctuates based on the location, social infrastructure development, connectivity, proximity, amenities, floor plans and design/structural specifications. Residents shouldn’t be in a frame of mind that investing at any time, with any project, at any location would reap high rewards. Anyhow, it is the sole responsibility of the builder to register themselves with RERA in the respective states. Land and ownership documents should be clearly submitted so the transparency is maintained. Documents like land status, land ownership transfer, completion schedule and approvals should also be furnished.

Maintain a separate account for the funds received from customers

Generally, the funds that are collected from investors are invested in the development for the upcoming projects by respective builders. This has led to insufficient funds in case of discrepancies in the current project that is being worked on. To clear such confusion and eliminate poor planning, RERA has devised a plan where the funds that are collected from customers in the form of pre-booking finances should be transferred to a reserve account which should only be used to clear out land construction expenses and other foundation issues. However, money can be used for this particular reserve account only after the prior approval of a chartered accountant or an architect.

Considering all these factors, first-time property aspirants can be sure to benefit from the rules that are set by RERA for under-construction projects so they have everything handy in order to make effective investment decisions.

Prestige Smart City Sarjapur has now proven itself as an ideal home purchase decision. Come along and get that much closer to your new home!