After you've decided to buy your dream home, one of the first choices you'll have to make is the type of payment plan.
In this article, we discuss three payment plans that you could adopt for buying your property.
Read through the pros and cons of each carefully and only then make your choice.
Time-Linked Payment Plan (TLPP) Under Time-Linked Payment Plan, you will have to pay regular installments during pre-determined periods.
The time period for paying the installment is decided by the builder.
Why You Should Consider TLPP Consider going for this particular payment scheme when you're confident of your finances and are sure about the developer's credentials.
Where TLPP Might Leave You at a Disadvantage This plan mostly benefits the developer, as he or she determines the installment amounts and the payment periods.
If the construction process is delayed, you'll be stuck making your payments without any progress in construction.
In addition, you'll be penalized heavily if miss out on paying any installment.
Flexible Payment Plan (FPP) This plan is a combination of the down payment plan (DPP) and the construction-linked payment plan (CLPP).
Under this scheme, you will have to pay 10% for booking and 30-40% of the cost within a month of booking.
The rest of the amount is paid as in the case with CLPP, that is, in regular installments as the construction progresses.
Why You Should Consider FPP This plan combines the positives of both the DPP and the CLPP.
You avail a discount of around 5-6% and your money doesn't get stuck in a dead-end project if the construction work stops.
Why FPP Might Leave You at a Disadvantage Because of the CLPP component in this plan, the EMI payments don't start until possession.
In addition, there's an extra cost of the pre-EMI.
However, it can be safely said that the pros of the FPP outweigh the cons.
Combo Payment Plan (CPP) This payment scheme contains elements of the assured return payment plan and the construction-linked payment plan.
Under the CPP, you have to make the payment in two parts.
The first payment part consists of 10% of the cost as booking amount and 40% within 30 days of booking.
As you can see, 50% of the payment is made in the first part of the plan.
This part is covered by the ARPP, that is, you will get a return of 10-12% on the amount paid in this part.
The second payment part consists of payment of the remaining 50% in equal installments as construction progresses, like the CLPP.
Why You Should Consider CPP You will get assured returns, calculated on the initial payment of 50%, payable monthly.
In addition, this plan is similar to the FPP, so you can follow the CLPP and pay at least 50% of the amount while the construction progresses.
Where CPP Might Leave You at a Disadvantage If you fail to pay any of the installments in the second part of your payment scheme, the assured returns will be discontinued.
In this article, we discuss three payment plans that you could adopt for buying your property.
Read through the pros and cons of each carefully and only then make your choice.
Time-Linked Payment Plan (TLPP) Under Time-Linked Payment Plan, you will have to pay regular installments during pre-determined periods.
The time period for paying the installment is decided by the builder.
Why You Should Consider TLPP Consider going for this particular payment scheme when you're confident of your finances and are sure about the developer's credentials.
Where TLPP Might Leave You at a Disadvantage This plan mostly benefits the developer, as he or she determines the installment amounts and the payment periods.
If the construction process is delayed, you'll be stuck making your payments without any progress in construction.
In addition, you'll be penalized heavily if miss out on paying any installment.
Flexible Payment Plan (FPP) This plan is a combination of the down payment plan (DPP) and the construction-linked payment plan (CLPP).
Under this scheme, you will have to pay 10% for booking and 30-40% of the cost within a month of booking.
The rest of the amount is paid as in the case with CLPP, that is, in regular installments as the construction progresses.
Why You Should Consider FPP This plan combines the positives of both the DPP and the CLPP.
You avail a discount of around 5-6% and your money doesn't get stuck in a dead-end project if the construction work stops.
Why FPP Might Leave You at a Disadvantage Because of the CLPP component in this plan, the EMI payments don't start until possession.
In addition, there's an extra cost of the pre-EMI.
However, it can be safely said that the pros of the FPP outweigh the cons.
Combo Payment Plan (CPP) This payment scheme contains elements of the assured return payment plan and the construction-linked payment plan.
Under the CPP, you have to make the payment in two parts.
The first payment part consists of 10% of the cost as booking amount and 40% within 30 days of booking.
As you can see, 50% of the payment is made in the first part of the plan.
This part is covered by the ARPP, that is, you will get a return of 10-12% on the amount paid in this part.
The second payment part consists of payment of the remaining 50% in equal installments as construction progresses, like the CLPP.
Why You Should Consider CPP You will get assured returns, calculated on the initial payment of 50%, payable monthly.
In addition, this plan is similar to the FPP, so you can follow the CLPP and pay at least 50% of the amount while the construction progresses.
Where CPP Might Leave You at a Disadvantage If you fail to pay any of the installments in the second part of your payment scheme, the assured returns will be discontinued.
SHARE
