Before Investing In Real Estate See The Ground Realities

Number of investors have sunk their money in real estate ranging from vacant residential property and commercial property in Chennai. This because the confidence that investment in real estate yields lucrative return on investment. Having certain ground realities which investors are supposed to adhere to prior to plunging into investment but for those who have failed to do, it has turned into a nightmarish experience. For example: Mr. Ranjan (name changed) an NRI from Kuala Lumpur, has invested in land on the outskirts of Chennai and when he visited the plot during his vacation, he founded that the land had been acquired by the state government. When approached the land developer he was confirmed the move and convinced him to provide with alternate plot, but the land which was provided was far away place where access was quite frustrating. On top of it he hasn’t passed on the compensation received by the government to the investor. Another example is: Mr. Kumar (name changed) working in Sharjah for past fifteen years. Developers from Chennai has sold plots near Hosur Road during the boom days. But couldn’t locate the plot in spite commitment to arrange for site inspection during his holidays. As said by market sources, group of NRIs hailing from Sharjah who have been taken for a ride by the same land developer has voiced concerns to the Indian consulate in Dubai but no concrete action so far been taken in this regard. The land developer has closed his Dubai operations and none of the investors could get their grievances redressed in spite of knocking at the doors of the company's operation in Chennai. Yet another instance, as a land developer has sold the land on the coastal area to an NRI in USA which was never registered and subsequently the land been acquired by the government. It’s not restrict to NRIs alone but even resident investors are left in the lurch. For instance, Sahara Township project due to come near Savitha Dental college on the outskirts of Chennai which hasn’t taken off the ground. The new residential Property of Chennai near the IT Corridor has been shelved to put investors in the stagger. Example: In the case of India bulls which has launched phase 3 residential project in Perumbakkam. The investors are now compelled to take their refund amount failing which it would be credited to their bank account leaving little time for investors to decide on the option. Those who have booked apartments year ago, the company has simply mentioned that they could not get the approval from the government authorities due to land issues. Chennai Metropolitan Development Authority (CMDA) has an investor cell wherein one can get details about the approval accordance for sites free of cost. Investors should invariably engage the services of a professional lawyer before opting for investment. Loans for plots are available which is yet another way to minimize the liability of the investors as the in-house legal team in the lending institutions would scrutinies the title deeds before sanctioning plot loans.