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Thursday, 6 March 2014

TIPS FOR PROPERTY REDEVELOPMENT


Who will not jump at a deal in which the builder offers residents of old buildings a good amount to get a refurbished flat with additional space? This is what has been happening recently. Not only does the flat seller receive the cash but he gets a monthly rent for his temporary accommodation also. When the new property is prepared he gets a , refurbished, newly built flat in place of his old one.

This is done by builders for the purpose of redeveloping the property and adding extra floors to a certain building. By selling the extra flats they earn revenue.Depending on whether the resident is requested to move temporarily or permanently the builder will pay the money to the present residents.For a temporary shift the builder will give money for the other accommodation till reconstruction is complete. Builders sometimes also give post-dated cheques.These should be accepted only if the money paid in advance is enough for at least 18 months of the rent. You should calculate if the sum given would be adequate till you come into the refurbished home.

If you are vacating the flat permanently you would get a larger sum of money from the builder depending on how your property has been evaluated.You should ensure that the amount is enough for you to buy another flat after subtracting tax payable.You should request a bank guarantee in order to prevent you of being defrauded.The builder deposits this amount with the bank that would be given to a resident if the builder does not finish the project within the time promised. However a builder cannot redevelop a building or a society if 100% of the families residing therein do not agree for it.

 Before you ultimately give the keys of your home to any builder you should ensure that your needs for the future are taken care of. You should know the way of entering into a redevelopment contract keeping in mind your needs. In these deals the resident has to decide the terms and conditions. Therefore, the flat owners or a housing society need the services of a professional lawyer and architect to guide them. The lawyer would make sure that present and future legal issues are tackled effectively.He helps to formulate the documents according to the law.

Before you give the project to any builder you should examine his track record.Your architect may be able to help you know if the chosen builder has finished his previous projects within the time promised and has paid the sum as promised in the contract.

An architect will assist you in knowing the worth of the property upon its valuation.This is a significant factor in deciding the amount offered by the builder.In the later reconstruction time the architect would be a watchdog to make sure that sub-standard materials are not used by the builder for construction.

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