Find out about the developer's cash fl ow and debt levels. In case of
listed developers, this information is there in annual reports. But in
case of unlisted developers, it is diffi cult to get these data and so
you may have to ask the developer directly.
Due to lack of strict regulations, builders use funds collected for one project for other projects. So, your builder may have taken a loan in the name of the company launched to implement a previous project and so the entity for the new project may show zero debt. You must be careful about these facts.
"It's best to restrict oneself to buying property from developers with sound fi nancial strength. Ideally, one must look at developers listed on stock exchanges. This is because their fi nancials are in public domain," says Brigade's Ahuja.
DEVELOPER RATING:
The ratings take into account the track record of the developer in executing projects as per specifi ed standards and ability to transfer clear titles within schedule. The parameters on which they judge developers are track record and organisational & fi nancial strengths. Based on their performance on these parameters, they assign the developer rating on a fi vepoint scale from DA1 (Excellent) to DA5 (Poor). A higher rating signifi es belief that the developer will deliver projects on time and in line with the agreed standards for quality.
"Both qualitative and quan- titative factors are used to arrive at the ratings. The quantitative factors include the developer's legal record, quality-testing mechanism, size of past projects, delivery and fi nancial strength. The qualitative factors are commitment to safety, after-sales service, market reputation, organisation structure and management quality," says V. Srinivasan, Business Head, CRISIL Ratings, SME & Real Estate. Opt for highly-rated developers.
Source From: http://www.businesstoday.in/magazine/money-today/real-estate/buying-house-property-tips-to-check-if-builder-trustworthy/story/219630.html
To know more detail other projects and review like Mantri Developers Reviews, Mantri Tranquil Review, Mantri Developers Review visit website: mantra.in.
Due to lack of strict regulations, builders use funds collected for one project for other projects. So, your builder may have taken a loan in the name of the company launched to implement a previous project and so the entity for the new project may show zero debt. You must be careful about these facts.
"It's best to restrict oneself to buying property from developers with sound fi nancial strength. Ideally, one must look at developers listed on stock exchanges. This is because their fi nancials are in public domain," says Brigade's Ahuja.
DEVELOPER RATING:
The ratings take into account the track record of the developer in executing projects as per specifi ed standards and ability to transfer clear titles within schedule. The parameters on which they judge developers are track record and organisational & fi nancial strengths. Based on their performance on these parameters, they assign the developer rating on a fi vepoint scale from DA1 (Excellent) to DA5 (Poor). A higher rating signifi es belief that the developer will deliver projects on time and in line with the agreed standards for quality.
"Both qualitative and quan- titative factors are used to arrive at the ratings. The quantitative factors include the developer's legal record, quality-testing mechanism, size of past projects, delivery and fi nancial strength. The qualitative factors are commitment to safety, after-sales service, market reputation, organisation structure and management quality," says V. Srinivasan, Business Head, CRISIL Ratings, SME & Real Estate. Opt for highly-rated developers.
Source From: http://www.businesstoday.in/magazine/money-today/real-estate/buying-house-property-tips-to-check-if-builder-trustworthy/story/219630.html
To know more detail other projects and review like Mantri Developers Reviews, Mantri Tranquil Review, Mantri Developers Review visit website: mantra.in.
