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Home / Buy and Sell / Resale Property / I want to buy an investor flat. Is it okay to buy ?
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I want to buy an investor flat. Is it okay to buy ?

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2 2020-12-23T17:35:15+00:00
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An investor flat is a type of investment where a buyer (usually an investor) buys a property before the beginning of the construction or at the pre-launch period. The investor makes an agreement with the builder to purchase a given flat at a certain future point of time. In return, the investor should pay a token amount for the purchase. Later, when a buyer wants to buy a flat, the investor sells it to the buyer. All the document verification and other procedures are already carried out by the investor. So, at the time of selling, a buyer just needs to sign the deal and move-in to the flat. There is as such no risk in buying an investor flat as it is totally legal. Here are a few pros and cons of buying an investor flat: Pros: 1. Immediate possession. 2. All the legal government and legal clearances are already carried out. So it is easy to transfer titles. 3. Quick home loan approval and no need of a tripartite agreement. 4. The area would be well-developed already when you move-in. Cons: 1. Can be more expensive than that of the prevailing market rate. 2. Negotiation might be difficult 3. Fewer choices of options. 4. No additional offers or festive schemes.

An investment apartment is an apartment purchased for earning profit and not bought for residing in it. In the Indian real estate market, you will come across different types of people. Some are agents, some are builders while others are investors. What do you think of when you are looking for a property? You will directly purchase it from the builder, won't it? Well, this is always not the case. There are other people who are involved in selling a new flat. One of them is the investor. Now, what is investor flat?

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As mentioned by Ms Preeti, an investor is a person who never purchases a flat for his/her own personal use. The investor pays the token money to the builder and books the flat under the investor’s name. Later the investor sells the flat to the buyer and earns some profit out of it . 

This is what is known buying apartment for investment. You buy a flat at a lower price and sell it by earning a profit. It is at times advisable to buy a property from the investor. Since the builders attract buyers with such schemes it can be at times risky for the buyer to purchase a property. If this is the situation then the buyer can purchase the property from the investor.

I hope you understand the meaning of investment apartment now.

Read more: How to start investing in real estate? How to get started in commercial real estate investing? Is it worth investing in a flat in Aparna Serene Park Kondapur?

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