GIFT, Ahmedabad – A detailed analysis!

The international award winning Gujarat International Finance Tec-City (GIFT) has been creating a buzz for quite some time now.

With various theories about its plans of development and/or getting shelved floating around, it is hard to say if Ahmedabad is going to be bestowed with this “GIFT” or not!

As evident, the GIFT project is highly ambitious… and will certainly take Gujarat to the level it is trying to reach at the global front.

But, this project showcased as a global finance centre has to overcome several hurdles to realize its ambition…

For those who are venturing into an unfamiliar territory, here is a quick brief --

GIFT;

 ü Has been showcased in various national and international events as Gujarat’s response to other global finance centers…

 ü Boasts of its tallest building, over 400m high, the so-called Diamond tower, overlooks a quiet flowing Sabarmati, and dwarfs the 125 other buildings planned around it.

 ü Looks like what it is supposed to—a city for the future; a new business hub in India; and a worthy rival to Mumbai.[Courtesy livemint.com]

With Ahmedabad already having a lot of new upcoming real estate projects in its kitty, it is feared that GIFT Ahmedabad will end up as just another incomplete real estate project too. 

A couple of years ago, Maharashtra pompously announced a similar project only to shelve it later on.

The project, which is currently witnessing the construction of two towers, is anxiously awaiting approval for its ambitious plans by the Airports Authority of India because of the high-rise’s proximity to Ahmedabad’s Sardar Vallabhbhai Patel International Airport.

If you are wondering how such similar projects have been successfully completed in fancy cities like New York or London, according to the Economics professor at IIM, Ahmedabad, the reason simply is the problem of land availability.

Of course, rampant corruption amongst our government offices where it is really really difficult to get approvals and passing(s) done is another factor one must consider.

Gujarat International Finance Tec-City (GIFT) Co. Ltd was formed in 2007 as an equal joint venture between Infrastructure Leasing and Financial Services Ltd (IL&FS) and state-owned Gujarat Urban Development Co. Ltd (GUDC).

The project was conceived to build a finance city near the state capital of Gujarat, Gandhinagar. The estimated cost was more than Rs.70, 000 crore.

Although the project sounded ambitious, and very impressive; a township spread over 25,000 acres; office buildings in 880 acres; projected revenue of $1 billion (around Rs.5, 500 crore today) by 2011; 500,000 jobs; all agreements were scrapped following the expiry of their validity six months later.

Of course, the blame game between officers and the company for the delay and financial irregularities has been going on like musical chairs with no result being derived…

Today, after all this confusion, GIFT is getting ready to stand up once again. The uncertainty is long gone and resources, apparently, are being allocated in a more organized and systematic manner…. 

Like, according to some internet reports, of the Rs.70, 000 crore cost, Rs.3, 710 crore has been allocated to core infrastructure including water bodies, river tunnels, roads and bridges; Rs.25, 000 crore to real estate; and Rs.30, 000 crore for utilities such as power generation, cooling systems and data centers. 

...Now, it is awaiting funds from investors. The Gujarat government rejected its demand for Rs.2, 000 crore as the former is not authorized to make budgetary allocations for a real estate projects.

It is said, that GIFT city will also house a financial services-based multi-services special economic zone in 250 acres. The Board of Approval (BoA) for SEZs has approved an International Financial Services Centre (IFSC) at GIFT, the first of its kind in India.

Being located in an SEZ, this will be deemed on foreign territory for export and import transactions.

This move, happening in our own Gujarat, will for the first time, enable Indian companies to raise funds for overseas acquisitions from banks and financial institutions set up in the GIFT city project.

…As for now, let’s just hope things go well for GIFT. Now this is what we call ‘development’!

7 BIGGEST REAL ESTATE MISTAKES

Property News Ahmedabad has always gone beyond conventional real estate topics and has believed in writing on a wider variety of subjects than usual.

This time, we have compiled a list of common mistakes we tend to make while buying and selling homes… Hopefully, reading this list carefully will help you avoid inconvenience during any sale or purchase you make!

     1. Buying a House for Its Decor 

The first thing you need to do when you walk in to a home is ask yourself… “Are you going to buy the house or the furniture?!” The more practical thing would be to focus on the floor plan or square footage rather than get carried away by fancy curtains or designer tapestry (which can be changed unlike floor space!)

     2. Waiting Until Diwali to Buy / Sell a House

As we all know, Diwali means much more than the festival of lights in India…! Diwali means best prices, best discounts and best demand… it is easily the busiest real estate activity period… but that does not mean you shouldn’t buy or sell a house for the remaining 364 days!

     3.Trusting Advertisements Blindly

An ad is not gospel truth! We all know that! And we really must learn to read between the lines... for example cozy signifies “small” and not “warm” when it comes to real estate. Like it is said, if it sounds too good to be true, it probably is!

     4.Buying/Selling solely based on the “Price”

Just because the value of a home increases with time, it is not wise to buy the most expensive house on sale! The same goes for buying the least expensive house too! Price does not guarantee quality and vice versa!

     5. Seeing the House Only Once

Generally, it is assumed that touring the house once is enough to get a real feel. However, it is important to view it at different hours of the day... during different days of the week. This will give you a good idea about its lighting, the neighborhood and so on…

     6. Rushing Major Renovations Before Selling

Repairs and minor upgrades are understandable... but renovating and reconstructing the whole property before a sale – or even worse – simply for a sale, is something which we would not really recommend! Let the buyer fix the house the way he wants… its best place to spend money on the outside. Research shows that increasing the curb appeal often returns the most value on your money.

     7. Buying What You Want, Not What You Need

One of the biggest mistakes we make while buying a home is buying something you ‘want’ rather than something you ‘need’! Why not add and subtract what you need on a piece of paper to get a good idea about how much you can stretch yourself. 

WHO HAS BEEN BUILDING AHMEDABAD?

The Forbes Magazine has tagged Ahmedabad as one of the fastest growing cities in the world with a vision of global stemming powerhouses. For the city which has been synonymous to the term ‘development’, there have been a few builders who have played a vital role in our ever expanding high class infrastructure.

There are many many more who deserve to be on this list, but here are a few of the one’s in the limelight for the right reasons!

     1.Swagat Group:-

Swagat Group has been focusing on constructing luxurious bungalows, villas, condominiums and residential complexes from high end to affordable housing and commercial cum office establishment.

In the journey so far, the group has successfully completed with a total constructions area of around 60 lakh sq ft and boasts of having more than 6000 valued customers.

The projects stand today as hallmark of quality, carving a special position for the group in the hearts of their customers.

     2.Bakeri Group:-

The Bakeri group is a firm that believes in optimum utilization of resources and conserving energy. It has always focused on building affordable edifices that promise to redefine the way the buyer lives. Bakeri has been designing its projects keeping in mind the average population rise. The group has landmark projects like Sakar series, Shilip, Suramya plotted development and Shrinandnagar in its kitty.

     3.Shree Balaji Group:-

Under the dynamic leadership of Ashish Shah, Shree Balaji Group is scaling a new horizon of excellence. Amongst its innumerable projects are Shree Balaji Agora Mall, Shree Balaji Green Valley, Shree Balaji Villa Patan, Shree Balaji Heights and so on..

     4.bSafal:-

Founded in 1995, bSafal has always been centered around on simple mantra – “know your customer as well as you know yourself”. From simple product features to entire residential complexes designed around a basic need, b Safal has stood true to its mantra and delivered magic every single time. Some of the ongoing projects of the group include Parishkaar I and II, Paarijat Residences, Samprat Residences and so on.

     5.Adani Group:-

Since its inception as a trading house in 1988, the Adani Group has diversified into dynamic business groups such as infrastructural development and FMCGs.

A pioneer in international trading and infrastructure development, the Adani Group is continuously engaged in maximising potentialities by synergising its multiple businesses.

After proving their mettle in high growth sectors like infrastructure, global trading, logistics and energy, it is their constant endeavour to deliver high returns to their stakeholders. And in the arena of Real Estate, leading the way in Ahmedabad is the Adani Group, with over 600 acres of luxury called Shantigram.

Shantigram is being developed as an integrated township, by Adani Township & Real Estate Company in association with Saumya Construction Pvt. Ltd.

     6.Pacifica Companies:-

Pacifica, the real estate conglomerate is an inspiration powered by fresh ideas to reposition real estate, shape new boundaries of reality and innovate continually. Founded in 1978, Pacifica has always been a signature statement of global life spaces. It is due to this unequaled expertise in developing great ideas that has gained global recognition.

     7.Sun Builders:-

During the three decades of glorious track record, Sun Builders Pvt Ltd has set numerous landmarks etching a concrete name for itself in the progress of Ahmedabad. With avant garde approach and cutting edge expertise in designing bricks into impressive residential spaces, splendid commercial properties and plotted communities the group has successfully completed nearly 40 prestigious projects in Gurukul, Drive-in area..

     8.Deep Group of Companies:-

Deep Group of Companies, a front runner company mainly engaged in construction as well as development of real estate business in Ahmedabad and surrounding areas since 1980 has adopted “Indraprasth” as a brand name! Their upcoming projects include Indraprasth 8, Indraprasth 9, Indraprasth Corporate, Heliconia and Al-Burooj.

SAFETY TIPS FOR REAL ESTATE AGENTS!

Our blog has always and mostly talked about property related news, properties in Ahmedabad, latest trends in real estate and so on…

But, there is one very important topic – related to real estate – which we tend to overlook; and that is Real Estate Agent Safety.

In our country, there are many who choose to become real estate agents… the commissions are high and people are always going to look for a place to live; so the workflow is good too.  

But, we cannot forget, that these agents; men and women alike have certain risks attached to their work.

Firstly, being a real estate agent is not a ‘desk job’. It involves a lot of ‘house showing’. 

These houses can be located anywhere.. and might need showcasing at any odd hour too!

However, with a number of agents being raped, robbed and murdered while showing homes and other properties, it is necessary to be up to date with security tips. Better armed than sorry….

A lot of real estate agencies have implemented safety measures for their agents, however, at an individual level – there are many things you can do to minimize the risks of an attack on yourself. 

     1. Verify the identity of your client:

    

    You should always ask for a cell phone number and id proof before entertaining a  client. To verify, call the cell number at a random time! If it is going to be your first   meeting, ask for a scanned copy of his or her id proof to be mailed to you in advance.

     2. Do not meet unknown customers at a property:

Never meet a potential customer directly at the property. Follow the first step to avoid unnecessary hassles later on.

   3. Leave a soft copy of your schedule for the day…specifying which property you will be viewing with whom:

Give someone in your office an itinerary of properties you plan to show and tell them to check in as often as possible by calling you. You can also use certain pre-decided ‘code phrases’ to alert your office about uncomfortable situations or emergencies without your customer knowing what you have communicated.

For example – “help!” can be communicated by using the code word “please check the red file on my desk…” This will alert your office which will then head out to help you.

     4.  Insist on using your own car for viewing properties:

Never get into a car with someone you don't know. Use your vehicle for showings or ask your customer to follow you in another car. If by any chance you encounter a threatening situation while driving, either hit the brakes hard suddenly of purposely ‘create’ a minor accident… this will create public attention giving you time to report the attack or escape. Remember to be as noisy as you can.

Finally, pay attention to little things like keeping your cell phone on vibrate mode to avoid detection; keeping the local police station’s number on speed dial, carrying pepper spray of a small pocket weapon for self defense, letting your customers enter a room while you stay by the door and paying good attention to exits.

In such matters, there is only little knowledge can do. 

One needs a strong presence of mind and an even stronger instinct. Be sure to trust your instincts… if you feel uncomfortable about a person you have to work with, alert your office immediately!

Never compromise with your safety! Hope you stay alert and vigilant at all times… 

COMMERCIAL INVESTMENTS...

There's an old joke in commercial real estate: If you think nobody cares you're alive, just miss a few mortgage payments!!!

Investing in commercial property is not something we think of doing easily. When we hear the word investment, normally the first thing which comes to our mind is a home. After all, shelter is one of the primary needs of man.

It is quite natural to start out investing in a home, as we are more accustomed to the same – but with the demand for land increasing with each day, commercial property too would be a sensible option for a secure future.

Firstly, a commercial property is always valued differently… and more than a residential property because the income that it produces is directly related to its usable square footage.

Secondly, the cash flow is much more in commercial investments and their leases are generally much longer.

Thus, if you ask a real estate professional about the benefits of investing in a commercial property, chances are that you will trigger a monologue on how such properties are a better deal than residential properties!

To start with, there are three ways to invest in commercial real estate:

     1.Buy office space from a developer

     2.Buy shares of a commercial developer from the stock market

     3.Invest in a real estate fund focused on commercial real estate.

Before plunging headlong into a deal, one needs to weigh one’s options well.

You as an investor must first verify and establish the location and its demand-supply and other market dynamics. This is very essential to ensure a smooth and profitable investment.

It is also a must to verify the credentials of the developer, quality of construction and management, access to public areas, connectivity and potential for future growth. 

Whether you intend to use the property or simply purchase it as an investment, these factors will only ensure higher returns in the future…

If you are just investing with the motive of ‘extra income’, you must be careful about --

1.The break-up of cash flows

2.The vacancy factor

3. Miscellaneous expenses like maintenance, property tax and building insurance

4.Lease term, lock-in period and expiry dates

5.Long term capital appreciation potential

6.Refurbishment, refinancing and re-positioning potential

[source : DailyBhaskar]

The biggest reason why you should be looking at commercial investments is that the rental yield it gains is usually 9-12% compared to 3-4% for residential properties.

According to news reports, in 2010, the demand for office space across India was 30 million square feet – 50% higher than it was in 2009. Today, the demand is much higher!

…After all, the pride of ownership, benefits of longer leases, and the cash flows… isn't it good enough to invest?!

After all, investing in commercial property is a high-adrenaline and high-returns game that residential real estate investment does not always guarantee! 

FACEBOOK MARKETING TIPS FOR REAL ESTATE PROFESSIONALS

Before we being with the ‘real’ marketing tips for real estate professionals, here are a few amazing facts about the social networking giant – Facebook – which prove why it is still one of the most sought after marketing strategies!

  1.  Monthly active users now total 901 million (up from 680 million a year ago)

  2.  One in 7.7 people in the world have a Facebook account.

  3.  Daily active users are up to 526 million (up from 372 million last year)

  4.  Monthly mobile users now total 488 million

  5.  Eighty-three million monthly active users accessed Facebook solely from mobile in the month ending March 31, 2012

  6.  300 million photos are uploaded to the site each day

  7.  3.2 billion Likes and Comments are posted daily

  8.  Hosts 125 billion friendships

  9.  Facebook hosts 42 million “Pages” with 10 or more likes.

It is a known fact that many businesses have thrived thanks to this giant social network, including Real Estate professionals. However, in order to win a game, you must not only learn the rules but stick to them as well!

This article is for those Real Estate professionals who wish to take their Facebook pages to the next level.

  1.  Your Facebook page should be easy to remember and must have your brand name in it. For example, our page is called ‘Property News Ahmedabad’.

  2.   It is always wise to add real user testimonials, acclamation  achievements and awards to your page. This is more appealing to your page visitors; and it immediately interests them!

  3.  Videos work wonders! If you have a good video showcasing your skills and work, you need not put it into words! Make a good video and upload it to your profile.

  4.  Start with a bang! Play quizzes, photo caption contests or offer discounts on popular products to those who follow and participate actively!

  5.  Hyperlink parts of your page to your website. This will increase traffic on the page. You can also add excerpts of your website and share with members.

  6.  Your profile picture should contain the main logo or identifiable symbol of your business.

  7.  You can use the “YouTube for Pages” app to share your YouTube videos on your Facebook page.

  8.  Always post useful, authentic and up-to-date information. People like to read ‘quality’ rather than ‘quantity’.

  9.  It is always a great idea to sometimes share non – work related leisure material like fun events or bizarre news! It makes a good change!

  10. Blog. Regularly. And connect your blog with your Facebook page.

  11.To engage your fans with your posts, share questions and encourage them to   comment. 

  12.Once you get a good response from your fans, make sure you manage to hold it by replying regularly and promptly to their comments / queries / suggestions and the likes.

Facebook is a very rich marketing medium that is loaded with great features. It would be unwise to not use it to its potential! What say you?!

TENANTS – INVESTMENT OR HASSLE?

With MNCs, Corporate Houses and Institutions luring us away from our homes to larger, more progressive cities, PGs and rentals have gone up significantly in the last few years. In earlier times, when cave men existed, people went looking for food… today; people have to go looking for work! 

At the same time, he needs a place to stay … a place which is light on his pocket, fulfills his basic requirements and also ensures he does not miss his family!

Thus the concept of ‘PGs’ and ‘tenants’ clicks really well.

However, not many know that in order to keep tenants in one’s house legally, it is necessary to follow certain steps. For example, once a home is rented out to tenants, it will be treated as ‘commercial’…meaning electricity bills, water bills, municipal taxes and the likes will all have to be paid at commercial rates.

Although there are thousands of homes today in various cities of India which fail to register legally and pass themselves off as ‘residential properties’. They do not have the required permissions or licenses. They might get away with these tricks but when it comes to requesting legal intervention due to tenant problems, they fall in their own trap!

Everyone is looking for an easy way to earn money – and what better way than renting out our property? It gives you monthly returns… and if you’re lucky, your property is taken care off too!

But like everything in this world, renting out your property also comes with its list of pros and cons. Let us try to examine some of them…

First and foremost, the extra income generated is the primary pro to renting out a home. You can ask around, do your homework and determine the best rent you can ask for your property. The rent also depends heavily on the facilities you provide.

The next benefit to renting out a home is the advantage of having someone look after it! It is always better to have someone maintain the property than let it lay unused and gathering dust.

Sometimes, if you’re lucky, for a small rent concession, your tenant might also be willing to do your odd jobs… like cutting the grass, shoveling snow, weeding, painting, cleaning and many other routine maintenance items. This is not a written clause and depends solely on your personal ‘people’s skills’!

On the down side, renting out part of your own house might cause you loss of your private life.

And the biggest con of renting out your house is something every land lord dreads – bad tenants! Imagine, if your tenant turns out to be a nightmare with loud music, bad smells or even simple sloppiness… you might face complaints from the society concerned.

Remember to always check the local ordinances and laws prior to renting out a room in your home or a home in general. 

Some jurisdictions may frown upon this practice... especially in a country like ours… and the last thing you need is a possible fine or getting in trouble with your authorities. 

PROPERTY DISCOUNTS - FOR REAL?

With the most festive part of the year around the corner, the first word which comes to our minds is ‘discounts’! From groceries to cars … from clothes to homes… no matter what the commodity, it is smartly discounted to lure buyers!

“Pay 50% now and nothing up to completion of property”; “Pay full payment now for the plasma TV and get 10% off on total price!”

From buy one get one free trousers to buy home get office free at “Ummat” – the first ever property show exclusively for Muslims at Ahmedabad, no one is wasting time in offering the heaviest discounts and weirdest schemes to hit sales.

Even real estate companies and brokers have started raising their sales pitch. But are these deals for real or a ploy that developers use to raise money and to prop up sales? Read on to find out …

The real estate market in general has been struggling to keep up with falling demands since the last couple of years…and now with the festive season round the corner, everyone who had held back their grand plans of purchase during the slowdown are now looking to grab the lowest rates offered.

While banks are less likely to provide funding to developers, left with no other option, developers have to raise funds by offering existing or prospective customers discounts and interest subsidies.

According to Business Today, “burdened by debt, between 2007-08 and 2011-12, the net profit of 12 listed realty firms has declined 67 per cent, mainly due to rising interest costs.”

On one hand, developers are on a roll if they get 10 – 12% of the payment for a project… but, buyers benefit only if the project gets completed!

Read more about his here – RISKY REFUNDS.

Moreover, as the interest earned is shown as a “discount” against the property price, there is no tax liability on the buyer's part. If the money is invested in a bank fixed deposit, the interest earned is taxable.

Whether you are giving 6 installments at one shot or a ‘token booking amount’ of 10%, the more money you give to your builder, the more you are taking a risk.

There is also a phenomenon called the ‘one payment – no installment scheme’ where you are required to pay an x amount at one shot as a ‘pre-launch’ discounted offer! 

Newspapers and hoardings shout out these ‘unbelievable prices’ and ‘limited discounts’ to make you run and book your home even before the project takes off!

Read more about this on - BUYING A HOME? DON'T LET SAMPLES FOOL YOU!

What we fail to see is the huge risk in investing at this stage as several approvals are yet to be taken, the project may be delayed or even scrapped. 

So what does one do? Well, stay vigilant of course! Discounts do not generally indicate traps, but the real estate industry itself is full of ‘un-licensed’, ‘un- authorized’ developers who are there just to take people for a ride!

Keep your eyes open, try to find out details about the developer and his past projects… and you might find, discounts are really not so bad after all!

MAKE YOUR HOME A MAGNET!

When a buyer walks into your house, the first few seconds are enough for him to decide whether he really wants to buy it or not.

…because the first impression is the last impression!

Like it is fondly and widely said for ‘food’…people eat with their eyes first; the same stands true in the case of a house too! If it doesn't appeal to the eye, you might as well forget about it.

While it can be understood that no house can be perfect, it is not impossible to try and achieve near perfection…or at least, to make a house look appealing and alluring.

Have you every toured another home? What was your very first thought … negative or positive? Mostly negative…because people tend to notice the glass half empty first.

In the same way, people tend to note the downside of your property first…does the house smell good? Is it lit up well? Are there any pet remains?

I’m sure most you must not have given this a thought.

When we purchase a home for ourselves, we put in all our time and energy in decorating it. Then why are we so careless when it comes to maintenance?

Here are a couple of things which are guaranteed to turn off not only visitors and relatives but also potential buyers or renters… These are simple things… if taken care of regularly; your house will remain good as new for a longer time.

Remember, after shopping around for the lowest mortgage rates, people tend to walk away from a house they like because it needs a few minor repairs… why give them that chance?! Keeping clean is one thing and keeping ‘in good shape’ is another…

    1.Paint – There is nothing more disgusting than watching peeling, cracking, and ‘moisturized’ paint on the wall of the house you want to buy! It’s really not that expensive today…you can use your artistic side and give your house a makeover using brand new paint. Not only will it look great, it will also make your house look ‘younger’! 

    2.Wallpaper – Just because your great great grandmother had hand-picked the wallpaper in your drawing room, it does not need to be there for centuries…that’s not classic, that’s ancient!!! Wallpapers and tapestries get outdated and should be changed regularly… remember, wallpapers just don’t stick to walls to make them look pretty...they also give your house and ‘ambience’! 

     3.Cabinets and Showcases – Cabinets and showcases highlight your most priced items. It would be a good idea to highlight them too! It is always a great idea to paint and re-paint showcase borders or cabinets every few months to keep them looking good as new. Using neutral colors is a great option if you do not wish to spend a lot of money…

     4.Unfashionable / Outdated furniture – There is a thin line between fashion and bizarrely crazy; and that line mustn't be crossed! Ancient stuff looks cool as long as its placed aesthetically.. or the house is of a particular theme… otherwise it is nothing short of an eye-sore. Period. 

     5.Windows and Doors – Windows and doors are probably the first things people notice when they enter a room. They must be well maintained and well painted at all times. Glasses which are broken or cracked should be replaced immediately. It is windows and doors that are responsible for lighting up or keeping the house in the dark. Be careful about choosing good curtains and drapes too! 

RISKY REFUNDS!

When Bhavesh Patel booked his dream home with an upcoming project near S G Highway, Ahmedabad, he wasn’t expecting anything to go wrong!

When he invested, he didn’t see what was going hinder possession of his dream home. The slowdown in the economy has directly and/or indirectly affected the real estate market greatly.

Thus, as expected, the project he invested in got shelved. The result – indefinite delays, loss of money and not to forget the frustration he is going through.

This is the story of thousands of people who are left helpless and frustrated because of delays. The worst thing is that they do not get any refunds on the hard earned money they have paid for their dream home! There hasn’t been one day Bhavesh has not followed up for his refund … or tried to meet the builder. Unfortunately, that does not seem to be working.

When stuck in such a situation, there is hardly anything one can do. One – court case; Two – out of court settlement by networking with similar victims; Three – Accept the delay; Four – cancel the booking and claim for a refund.

Most people prefer the last option for obvious reasons. The catch is that there is hardly a case where the full amount of the deal is returned.

What is becoming a matter of great concern is that there is no law – no norm which binds such refunds of cancellations. The amount refunded eventually varies from builder to builder. Refunds basically depend on three factors—developer's agreement, reason for requesting the refund and the market situation. 

So, what does one do?!

Builders tend to ‘charge’ more money in the name of ‘registration’ by demanding Rs 10,000-50,000 to facilitate the process. This is besides the stamp duty and legal registration costs.

The law, on the other hand, has no rules and laws for this and it is universally agreed that once signed, one is legally bound to follow the agreement.

To avoid getting stuck, it is recommended to pay the booking amount by cheque rather than cash. This will ensure receipts.

Another handy tip is to approach the builder with a valid reason for backing out of the property and claiming the refund. It is found that developers are more open to humanitarian grounds rather than other things.

Most importantly, one must be very careful of the agreements and papers and their authenticity. These must be clearly read and verified.

If your builder is unable or is not refunding your booking amount, you can request shifting to a complete project by the same builder. Many people are accommodated in this manner.

If you’re heard the phrase ‘majority wins’, you can make the phrase work in your favor too! Look around for people in a similar state and negotiate hard as a group.

The bottom line: when it comes to refunds, there are no rules and you'll have to fight it out with the builder. But if you do your homework well, you can give a good fight.

Here are a few handy tips, from various sources of the internet, to keep you safe from such traps --

• Familiarize yourself with the sale deed before going to developer.
• Give a good reason for withdrawing from a project; financial problems work best.
• Consider shifting to another property by the same builder.
• Network with other buyers in the same project.
• Ask the developer for a written document specifying the deduction.
• Don't pay cash while booking the property and ask for a receipt. Use cheques.