Friday, December 16, 2016

Having No Pre-EMI while buying houses

Many builders selling residential properties in Karnataka, Kerala and Tamil Nadu have the offer of having no Pre-EMI while buying houses. Many people might be confused about the advantages about having no Pre-EMI; this week let us take a look at what no Pre-EMI means.

No Pre-EMI is a scheme wherein the builder basically takes up the burden of the buyers and promotes better buying opportunities for the buyer in the fluctuating market trends. The buyer will have to pay an upfront amount while buying a flat and the payment might range from 5% to 20% depending on the builder. The EMI payment will start only after possession of the house. Till the time of possession, the builder will have the burden of EMI and pay it to the bank.

The builder might either pay a part of interest and principal on your EMI to the bank in a reducing format for a fixed period of time or they pay only the interest and the principal amount is deducted from your loan account. Verify what kind of payment is being made at the time of agreement itself.

The buyer has a better financial planning and get to build up resources for future payments and on the other hand the builders have the pressure to finish the projects on time and so the buyers get surety that the project will be handed over on time.

When a buyer pays down payment on lower price of the property which will appreciate through the time, they also get the advantage of project appreciation with benefits of building up payment resources!

No Pre-EMI is a definite advantage to the buyers when it comes from a good and trustworthy builder like Sowparnika!