Assured Return Payment Plan
An assured return payment plan has to do with a fixed monthly return given by the builder on the invested amount of money given by a person. Most of the times, these are given for under commercial construction properties such as space in Business park, IT park, malls, shopping plaza, shopping studios, and serviced apartments.
For all assured return that is offered on a project that is under construction, a formal agreement or a Memorandum of Understanding (MOU) between buyer and seller is always executed in which the seller promises the buyer a certain amount of returns every month till a particular period of time.
There can be three categories for this plan. It could be Assured returns till possession, Assured returns till possession +3 years and Assured returns till possession + till the first lease.
Some of the challenges faced by this method are cases of Cheque Bounce, Tax impact and a case of no regulation, also there is no control over tenants and renting, and it is usually difficult to resell.