The need for real estate is insatiable among Indians. Property acquisition is regarded as the safest and most profitable kind of guaranteed investment. However, this frequently leads to people investing in dangerous and pointless options. We are so focused on making quick money and deals that we often neglect other important elements. As a result, real estate deals offering guaranteed profits have skyrocketed, prompting the Reserve Bank of India to tighten lending standards for developers' projects.
Also, while real estate regulation may have curbed such offers in the residential section, small builders are still fighting and giving a guaranteed return on investment in the commercial segment since they have no other means to get cash because banks may not be ready to lend them money otherwise.
The Unregulated Deposit Schemes and Chit Funds (Amendment) Bill, 2018, aims to safeguard investors' funds by prohibiting unregulated deposit schemes and preserving depositors' interests. All cash-seeking developers must register with the appropriate body, and existing regulated developers must re-register.
Before you succumb to such all-too-good-to-be-true claims, keep the following points in mind: To begin with, the rates of properties that provide such guaranteed returns are typically substantially greater than comparable properties. Second, when you factor in the tax ramifications, the lucrative sum appears to be considerably less. Money received through such methods is referred to as income from other sources, and no deductions may be claimed on it. The situation is not the same when it comes to rental income.
The money is coming from your pocket, be sure the guaranteed return is in the form of a bank guarantee and not in the form of bounced checks. Finally, always evaluate the developer's brand and track record before spending.
