Golden Gate Properties – Double Your investment in 18 months – What are the hidden factors?
These days you might be seeing several advertisements about Golden Gate Properties investment in Banglore, which says “double your investment in 18 months”. If you are getting tempted with the caption, just look the features before you buy such properties. What is this Double Your investment in 18 months in Golden Gate properties, Bangalore all about? What are the hidden factors one should consider before investing in such properties?
Also Read: How to get higher Net Take Home Salary?
Features of the Golden Gate Properties – 5 Bangalore projects
These 5 projects are offered by Golden Gate Properties, Bangalore.
They are currently offering double your investment in 18 months for these 5 projects.
These projects are located across Bangalore South, East and North.
These are 1,2,3,4,5 BHK Apartments and few of them are Villas.
These properties are starting from Rs 25 Lakhs to Rs 1.21 Crores depending on the project. These are only basic prices.
These projects are being offered under double your investment in 18 month's caption with “10-80-10” scheme. Means on project value, you need to pay 10% as down payment, 80% would come through your home loan (if required) and 10% you need to pay for property completion and at the time of possession of the apartment / house.
What are the details of properties?
1) Golden Panorama
Off Kanakapura Main Road, Near Raghuvanahalli Metro Station, Bengaluru South. 2, 2.5, 3 & 4 BHK LUXURY APARTMENTS, Ranging from 1210 to 3360 Sft – Prices starting from 60 Lakhs onwards.
2) Golden Homes – III
Sarjapur-Attibele Road, Near Indus International School, Bengaluru East. 5 TYPES OF 3 & 4 BHK VILLAS. Ranging from 1800 to 4055 Sft. Price starting from Rs 90 Lakhs onwards.
3) Hanging Gardens
Opposite Manyata Business Park, Near Hebbal, Bengaluru North. 3 BHK APARTMENTS. Ranging from 1860 to 2900 Sft. Price starts from Rs 1.21 Crores onwards.
Off Thanisandra Main Road, Near Manyata Business Park, Bengaluru North. 2, 3 & 4 BHK APARTMENTS. Ranging from 1440 to 4385 Sft. Price Starts from Rs 92 Lakhs onwards.
Chandapura-Anekal Road, Near Electronic City, Bengaluru South East. 1, 2 & 3 BHK APARTMENTS. Ranging from 765 to 1590 Sft. Price starts from Rs 25 Lakhs onwards.
What the hidden factors in Double your investment in 18 months scheme?
1) You need to pay 10% as down payment, 90% would be funded through your home loan (if required by you) and balance 10% need to be paid by you at the time of possession of the property. However if you do not wish to take possession, instead of paying 10% balance, you can opt for selling this property back to builder and in return you would be paid double your money of down payment. Means, you would get 10% + 10% = 20% of the 10% down payment what you paid. This is what is called as double your investment.
As an example, if you have purchased property for Rs 1 Crore, don’t think you would get another Rs 1 Crore after 18 months. You would have paid Rs 10 Lakhs (10% of Rs 1 Crore) and in case you are not interested in the property at the time of possession, you would be paid another Rs 10 Lakhs along with your down payment of Rs 10 Lakhs.
2) Investors would count that they only paid 10%, hence by returns, they are getting another 10% which could be a good deal. However, the catch is, your bank already paid 80% to them before possession, hence your total investment is 90% and not just 10%.
3) If you sell the property back to builder within 18 months, you would still incur home loan processing charges and pre-closure charges (if any) as it is for short term period of just 18 months.
4) There is no guarantee that company would buy back such properties. Earlier, we have seen similar instances where companies would give such agreement on plain paper instead of a stamp paper. Any agreements signed on plain paper is not valid in legal terms.
Also Read: How to get Multiple Incomes?
Should you opt for such double your investment schemes in 18 months?
One should note that in reality the entire investment is not getting doubled in 18 months. It is only 10% we are getting additional. One should consider, additional charges incurred for a home loan, any specific charges to be incurred during the process within 18 months (including interest, if any), buy back agreement legal validity etc., before taking investment decisions in such schemes.
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Golden Gate Properties – Double Your investment in 18 months
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GGPL is notorious for poor project execution, delayed timelines and not keeping commitments.
Visit any of the existing projects and talk to people who have bought into them.
I am a customer of GGPL. My sincere suggestion:
– avoid entering into any such scheme with them that creates a financial lock in
– avoid any in progress projects
– do not believe future promises on deliveries/commitments