Top 5 Reasons Why Real Estate Projects Get Stuck
Have you ever try to invest in a real estate project that's gotten stuck? Before investing in a real estate project you should read this civil experience article or already invest in construction and face issues then Comment your reason in the comment section
Under Construction projects can be very tricky! Please do thorough due diligence before making this once in a lifetime investment towards your dream home!
Why Real Estate Projects Get Stuck
#1 No Money For Construction
The builder has money to start the project but not finish it.
#2 Diversion of Funds
The builder takes money for 'Construction Project A' puts it in 'Project B' rather than complete project A.
Question from a reader: Does it applies today also because Rera is der hence builder cannot do much here and there!
Answer: Yes RERA has tried to minimize this by their rules on escrow accounts, but builders still find a way out sometimes!
#3 Permission Issue
The builder couldn't get the approval process!
There are so many reasons such as faulty design, not follow local authority guidelines, improper knowledge etc
#4 No Intention!
The builder never had the intention to finish the project.
Construction Builder has no desire to finish the project or they started a new construction site or business.
#5 Didn't Follow Construction Plans
The builder construct the building as per construction plans but after they change in plans And now Municipality has got his project stuck!
Download High-Quality Image from below
These are Some of the reasons, why NBFC avoid giving fundings in such Real Estate Projects
In that case, what can we do as the buyer's when purchasing an under-construction project. Is there a lawyer who we can appoint to check documents or what are the other options?
Here we provide short and simple points regarding construction real-estate investment but if you want a detailed article then tell us in the comment and follow us.
FOLLOW US TO LEARN MORE ABOUT REAL ESTATE!!