Done with redevelopment? Now get a home insurance!

Redevelopment has become a catchphrase in saturated cities like Mumbai, Kolkata and Delhi. With limited land availability and sky rocketing property prices, many housing societies are resorting to redevelopment. However, it is crucial to weigh both the pros and cons of property redevelopment before undergoing it. Dilapidated structures on the brink of collapse is the dark reality of thousands of housing societies in metro cities. Thus, redevelopment appears as the most feasible solution to housing societies as not only it is light on the pocket but also ensures additional amenities. Typically, redevelopment is a process wherein a developer, on the consent of 70 percent of the members of the housing society, takes the onus of reconstructing the society and at times also offers additional amenities such as gymnasiums, parks, swimming pools and play areas. In lieu of it, he builds new residential units for sale and earns profit out of it. Let’s understand what are the advantages and disadvantages of redevelopment

Advantages:

• Redevelopment is a way of giving new life to the otherwise dull building. You can do structural repairs but that will only increase the property’s life by 4-5 years. Developers offer newly constructed earthquake resistance structures which increase their life expectancy.
• Redevelopment guarantees a better standard of living. Not only it involves reconstructing the building from scratch but also improved facilities such as intercom facilities, concealed plumbing, smoke, cable and telephone wirings, smoke detectors, firefighting, clubhouse, swimming pool and gymnasium.
• Since all redevelopment projects focus on either stilt parking or basement parking, the ground space can be used as a play area for kids. Also, it does not obstruct ventilation, view or natural light.
• Redevelopment increases the capital value of the property. With modern amenities and improved condition of the property, capital prices are likely to increase.
• Lastly, with redevelopment projects to be included under the ambit of Real Estate (Regulation and Development) Act 2016 (RERA), the developer community stands accountable to deliver projects in time and as per the agreed terms and conditions.

Disadvantages:

• Since the building is equipped with modern amenities, the overall maintenance cost of the property increases.
• Most of the times the builders offer the owners to stay in rented accommodation but do not offer the right rental amount. This forces the owners to stay in smaller places and face problems. Therefore, it is important to discuss the monthly rent prior to giving the property for redevelopment.
• Very often, developers adopt deceptive trade tricks and possess the ownership rights of the residential units in the society. In a bid to dodge such a scenario, members should hire a competitive solicitor, who holds huge experience in redevelopment projects.

Now that you have gone through the advantages and disadvantages, you would also want to know about the insurance of your redeveloped home. You need to buy a new home insurance plan since it becomes a new building. Bajaj Allianz offers a comprehensive home insurance policy for home owners like you. It has easy buying policy, quick assistance and content cover and other valuable cover for your home. Now that you have got your swanky new home, get it insured by Bajaj Allianz Home Insurance Policy today!   *Standard T&C apply. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.