In a recent twitter conversation, it turned out that builders are offering “interest free loans” to customers. A company called “Investors Clinic” is offering what are zero-interest loans to customers( Source ). In short: You pay 10% down now You then pay the rest over 100 monthly installments There’s no interest charged Fantastic, you think? Not so fast. These deals are too good to be true, because of one thing: Risk: Will the Builder Deliver? All projects mentioned are under-construction. You don’t know when you will get possession – even if a project looks like it’s “in progress” the real progress could be next to nothing because the builder’s in a massive cash crunch. Until the real estate bill comes along, there is no way for you to even know if your money will go to the same project you are buying (since they can move money to another project that is even more crunched for cash).… (Read On…)
[via Capital Mind]
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