Flexible Payment Plan : Buying a home is a significant financial choice. For most home buyers, especially first-time buyers, finances become a major concern because it requires a significant amount of money. In order to facilitate hassle-free real estate transactions, several developers provide buyers with a range of payment options. The flexi-payment plan, sometimes known as flexi pay, is one of the widely used payment plans. The buyer’s convenience is ensure by this payment plan, which combines down payment and construction-link payments.
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A flexible payment plan: what is it?
In order to make the purchasing of real estate for purchasers easier, developers provide a variety of payment options. A flexi-payment plan allows buyers of real estate to pay the remaining balance over a certain period of time by making a one-time, fixed-amount down payment. There are three possibilities for flexible payment plans: 50:50, 30:70, and 20:20:20:20:20.
Plan for down payment
a down payment plan requires the buyer of real estate to contribute a predetermined sum of money toward the purchase of the property. It is a time-honor payment option that has been use for many years. A down payment is a portion of the total cost of the property. Around 10% to 15% of the entire price is demand by developers at the time of booking. Within 30 days of the reservation, the buyer must pay the remaining 80% of the total. At the moment of possession, the remaining 5% is paid.
Developer discounts are attractive when it comes to the down payment plan. If the developer or seller can be reliably trust, this payment plan is perfect for investors. To find out if they have delivered homes on time, one can look at their track record. This is require since the buyer pays a large portion (95% of the entire cost of the house) in advance.
Plan related to construction
A payment arrangement called a construction-linked plan (CLP) is advantageous to both the developer and the buyer. With this payment plan, the developer receives the funding needed to begin the project, and the buyer can reserve the property even with little funds. In a CLP, project progress determines how much is paid.
10% of the entire property value must be paid in advance at the time of booking for a CLP. The remaining 10–15% must be paid within 30 days of the reservation date. At every stage of the building process, including constructing the foundation, finishing the basement, and erecting the walls, the buyer pays the remaining amount.
This plan is relevant to an EMI interest. As soon as the buyer takes ownership of the property, the EMI on the principal amount begins. Although a buyer must pay extra for this payment plan, they will benefit from it as they will just have to pay interest rather than the whole EMI until they receive the house.
The advantages of a flexible payment schedule
Twofold benefit
One advantage of a flex plan is that it offers two payment options. A down payment and subsequent EMI payments are require of a buyer of real estate.
Allows customers to make savings
They are able to better arrange their budget and save a substantial amount of money because the payments are contingent on the state of the building.
Developer discount
The buyers can save five to six percent of the overall cost of the property by making an initial lump sum payment. Developers factor this discount into their pricing quotes.
Flexi-payment is a good choice for property buyers because it allows them to benefit from possible capital development over the course of the payment period. They profit from the appreciation of the property’s value over time, particularly when attempting to sell or refinance it.
Flex-payment plan: The associated risks
When purchasing real estate with flexible payment plans, the buyer must contend with the difficulty of getting their money back in the event that the project stalls after booking. A buyer may have to pay interest starting in the first year of a flexible payment plan that approaches 50%. But only 35% of the total is subject to interest in CLPs. Flexi plans are therefore thought to be a more expensive payment option than CLPs.
Navi Mumbai Homes Point of view
A buyer of a property needs to think about a number of things when choosing a payment plan, chief among them being their financial status. To make an informed choice, it is preferable to weigh the advantages and disadvantages of several ideas. This will guarantee a hassle-free real estate purchasing process.
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