Choosing the Best Payment Plan in Real Estate
Want to buy a property but fear investing a huge chunk of money at once? Don’t worry—today, we will talk about the best payment plans in real estate, which allow you to invest a small amount initially and pay the rest with construction progress or directly on possession.
What is a Payment Plan in Real Estate?
A payment plan is a method that allows you to invest a small amount initially to book a property and pay the remaining amount either during construction stages or directly at the time of possession.
It enables you to pay the amount directly to the builder without any interest or extra charges—unlike banks.
Which Payment Plan is Best for Property?
However, there are no legal rules for payment plans—it varies from builder to builder. A builder can choose to offer any type of payment plan, including the most common ones: CLP (Construction Linked Payment Plan), Down Payment Plan, Flexi Payment Plan, or Possession Linked Payment Plan.
Choosing the best among them entirely depends on your needs.
Let’s understand it…
Suppose a builder offers a 50:50 payment plan on a property. Now, you might not have 50 percent of the property cost right now, but you can arrange it in the future—maybe in 6 months or within a year. In that case, you should look for properties with less initial payment demand, like a 20:80 plan, where you pay 20 percent now and 80 percent on possession.
Forcing yourself to opt for a payment plan that doesn’t support your current financial status can harm you later—as you’ll also have other expenses that need attention.
Assessing different types of payment plans in real estate
CLP (Construction Linked Payment Plan)
This payment plan suits people who want to invest smaller amounts in a property as construction progresses.
For example:
• On foundation – 20%
• At 5th floor – 20%
• 10th floor – 20%
• After completion – 40%
This is a great option for people who fear project delays or builder defaults. In this case, you only pay for the work completed—and the rest after full completion.
Possession Linked Payment Plan
Best for someone with low funds initially but who can arrange money in the future. Also ideal for those worried about project delays.
In this payment plan, builders may offer:
• 20:80
• 30:70
• Or in rare cases, even 10:90
In my advice, if you can arrange funds later or fear construction delays, you should opt for this plan.
Down Payment Plan
Not so lucrative, but suitable for businessmen or people with spare money who just need a little time to arrange the full amount.
Typically:
• Book with 10–20% initially
• Pay the rest within 45–60 days or max 90 days
• Sometimes 5–10% is left to be paid on possession
Flexi Payment Plan
This is a combination of CLP, Possession, and Down Payment Plans. Builders may offer two types:
Time-based:
• 20% now
• 30% after 6 months
• 30% after 1 year
• Rest on possession
Construction milestone-based:
• 20% on foundation
• 30% on 5th floor
• 30% on 10th floor
• Rest on possession
(Like CLP but with mixed flexibility.)
Rent-to-Own Payment Plan
This plan allows you to rent a property for a specific time, with the option to buy it after the rental period ends. A small portion of your rent contributes towards the property's payment, gradually building your equity.
In simple language, it suits people with the mindset of “pehle istamaal karo, phir vishwas karo”.
Custom Payment Plans
Custom payment plans are other types apart from the prominent ones. A builder can create their own plan, name it differently, and set unique terms. In such cases, you are advised to read and understand all the essential details to avoid future issues.
Go With a Real Estate Consultancy
A real estate consultancy like Commercial Noida can fetch you the best—and sometimes desired—payment plans as per your needs.
We are partnered with top developers and industry professionals, which helps homebuyers and investors achieve their goals with efficiency and transparency.
Opting for properties through a real estate consultancy brings multiple benefits:
• Smooth documentation
• Direct contact with developers
• Quick resolutions
• Exclusive discounts
• Numerous other advantages
In a Nutshell
Opting for a payment plan completely depends on:
• Your needs
• Your Preference
• Your capacity to arrange money
Also, it depends on the builder’s reputation. If a builder’s track record isn’t good, you may hesitate to invest a large upfront amount. But with a reputed builder, you might feel more secure.
I have incorporated all the major payment plans and explained whom they suit. For consultation or property options with the best payment plans, call us at 7053707070 and schedule your free visit today.
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