By Runwal Group Posted On Oct 14, 2019
Category Market trends and insights
Subvention is that one word in the real estate market that has caught everyone’s interest. A vast majority of renowned real estate developers have been offering subvention schemes to their customers. So what exactly does the subvention scheme entail? Under this scheme, the customer pays the initial amount while the rest is organised through a bank. The customer forgoes the interest cost for a specified period, which is borne by the developer. The customer starts paying the EMIs only after the specified period has ended. And since the payment from the bank depends on the construction progress, the pace of construction is kept in check.
Here’s a closer look at all the benefits of the subvention scheme.
Low Initial Payment
The initial payment to book your home can be a percentage as low as 10% of the Agreement Value. This gives you ample time to plan and manage your cash flows and EMIs to be paid after the end of the period.
Entry Price Advantage
Since the project is under construction, the customer pays for the project at a lower price than its fully developed counterpart. This low initial investment can yield a higher ROI in an appreciating real estate market.
Limited EMI Burden
With no EMIs for a specified period of time, customers do not have to worry about compromising their finances. They can plan well in advance and keep building their savings for when the time comes to pay the EMIs.
Builders are paid by the banks based on the pace of construction. As such, customers can rest assured knowing that the project will be delivered on time. Usually, customers resume their dues by the time the building is almost ready. Also, RERA affords greater protection to customers’ investments as the developer cannot divert the funds elsewhere.
Thanks to the risk-free benefits, the subvention scheme is touted to be one of the most promising opportunities for you to buy your dream home. If you’re looking for luxurious living in the heart of Mumbai, you can take a look at the projects by Runwal Group. You can check out the offers on the development today!