Reselling flats for profit
Any idea if there's a possibility to make some profits by getting a property at pre-launch from the tops builders (Prestige, Brigade types) and sell it 3-4 years later (Near possession) I'm hearing a few folks actively doing this in Bangalore.
Bakwasmaal
Stealth
a year ago
Yes you can do it if you get a good deal, ensure you don’t register the prop in your name..
Bakwasmaal
Stealth
a year ago
Additional cost for registration that you can avoid before selling. You need to only pay a minimal amt ( c. 1%) as transfer fees to the builder, who will sell the prop on your behalf.
Obviously there is profit but is it risk free?
The builder knows the value of his project better than anyone else.
The risk you are shouldering is:
1. Whether project will be completed (Less of a risk with Prestige like builders and hence the discounts are lesser as well)
2. Risk of whether the commitments/quality will be held up.
3. Market risk: You are trying to predict how the RE market will look like 3-4 years down the line.
4. Location risk: Today the eastern part of the city is hot but as metro lines open up, the dynamics of the market is fast changing.
You make a profit for shouldering these risks. Think it through and invest
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