PLP Plan: a risk free investment opportunity for investors

To increase the sales and clear the inventory, real estate developers are coming up with innovative and attractive offers. And one of the most attractive schemes is PLP plan (possession linked payment). It is also known as risk free investment opportunity. Before that the most popular plan was the CLP (construction linked payment). In CLP, the payment to developer was linked with construction and it was either by the buyer or the bank (from which the loan is taken), whereas in PLP plan the payment happens in two parts; first on the time of booking and second after getting the property ownership. In first part investor need to pay 18 – 30 % of the Basic Selling Price and in second part investor needs to pay the rest of the balance.

Advantages of PLP Plan:

The main benefit of PLP is that it reduced the development risk, and threat that construction may be postponed or not be developed. This scheme is able to put the builders under pressure to complete the project on the fixed time because only after that they will be able to get the balance charge. This scheme also has the financial benefits because first 18 to 30% of the total amount  can be paid from your wallet and for rest you can take a loan after the completion of property.  In this scheme you also get the 2 or 3 more years to save more money for final payment and may be, it is possible that purchasers needn’t to avail a large amount of credit. Some of the reputed builders in Mumbai, Delhi, Noida and Gurgaon are offering the PLP plan.

Happy Customers Of PLP Plan

Happy Customers Of PLP Plan

Financial strength of developer:

Under PLP plan, a large proportion of the risk is transferred to the developer, so buyers should ensure that developer has the financial strength to complete the construction of project or if he is able to receive the funding from a bank.

Cost difference:

The cost of apartment should be the same under both CLP and PLP plans, but if there is difference in price of these tow plans, so it means in PLP plan developer has already included the cost of funding and at this point of time it suggests to pass up the offer.

Now it’s time to go for PLP plan:

This plan is the biggest advantage of investors as it reduces the development risk or the risk that the project may be delayed. With a short amount of money in this plan you can look for the apartment as it comes with monetary benefits. Normally, if you opt for a loan, you need to pay the EMI, but in PLP plan you need take the loan after 2 or 3 years, it means you can save your extra expense on EMI at-least for 2 or 3 years.

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