Fraud practices by builders in Bangalore

1. Try buying a flat in any premium builder apartment (ready to move in or already given possession), you will find number of agents who try selling the flat. It is sad that we won’t find a single owner directly who can sell. These flats wont be registered in the owners name even after 1 year.
I had such kind of experience with Sobha Chrysanthemum.
There are more than 1 ,2 or more agents involved in these scams for selling a single flat along with the builder.
Once we finalize a flat, The agent will connect to a bigger agent (claiming to be the owner of the flat). These biggies will take loan from some private banks.

If the deal goes through , These big agents pays around Rs. 150-200 per sq ft to the builder . So for a 1700 sq ft flat, for supporting such practices , builder gets a token money of 3-4 lakhs easily (the buyer is paying indirectly again)

2. Try negotiating , these small agents tell “No flats are available below 80 lakhs in this area, we cant sell below it”. Bloody fellows , who are they to fix the prices. I have the right to negotiate with the flat owner directly. Take the 1% commission and just leave the scene

3. When these builder launches any project, they have tie ups with these big real estate fellows, so that they block some of the flats at launch price itself to show ARTIFICIAL DEMAND. And keep on raising prices as per the number of bookings done. Imagne Sobha city, Do you think anyone will pay for showing class discrimination inside a project. Initial 4 buildings are low cost, then the high class villas and then super luxury flats. Why should I pay 1 crore and then live like a low class inside this Sobha City. For outside world “yes” I live in Sobha City , but we should have some respect inside the building premises.

Finally the person who needs a accommodation in Bangalore , he usually pays a huge premium on these flats . Imagine our hard earned money is feeding so many real estate agents. We work hard , pay off these huge loans and these people enjoy.

Buyers , please dont blindly fall for these people. We are educated enough, think before you invest in any real estate . Prices wont sky rocket within 6 months in any city. I don’t think now a days anybody is even buying flats . Don’t fall for these mal practices.
They will tell that 3-4 people are already eyeing this flat. These are all simply to create a sense of urgency . Don’t fall in these traps.
I have written because I faced such problem, other builders will also be doing the same. Now a days , in no mood to buy a house in Bangalore. I think housing bubble will burst anytime soon here, because the end users are very few. We will be paying loan amount for a house which will become more than 1.2 crore (including the interest rate) and the flat prices wont increase so much in near future. .Just try to sell , these agents will tell you that prices have come down to 65-70 lakhs . Try and see.

Pay more than 1 crore for a flat where a basic necessity like Cauvery water is not provided. Then why to spend so much in a city like Bangalore. Ground water level has reached below 1000 feet, which is not at all potable in most of these areas. Yes , pay for quality construction but who will fulfill the basic needs ?

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