Self redevelopment in Mumbai has many advantages and is fast gaining recognition among housing societies in Mumbai. In opting for Self redevelopment in Mumbai, societies can avail financial loans for the development and can then appoint architects, consultants and contractors to carry out the work as per their requirements. This effectively cuts out the builder from the process. It ensures that the process is transparent and safer with more control in the society’s hands to oversee construction for better quality outcome.
Benefits of self redevelopment
Complete Control in the hands of the Society Members
- In a self redevelopment project, the society members have control over the project where they can decide on plans, designs and also setting development standards. Thus the society members can even decide upon the quality of construction.
- The society members can also decide the amenities they want to have in the self redeveloped society like parking spaces, play area for children etc.
- Plus, building plans cannot be changed without the consent of members.
Availability of Funding
- Mumbai District Central Co-operative Bank Ltd (MDCC Bank) covers up to 95% of the project cost which also includes the rent which will be paid to the society members for alternate accommodation, so again avoiding the risk of builder defaulting on rent payments later.
- The funding disbursements are directly provided by the bank into the societies escrow account through which the concerned parties as per milestone completion are paid.
Extra Amenities in new buildings
- Members may use their discretion to develop their residential buildings into residential cum commercial buildings, which has its own advantages, in terms of cashflows
- With the advent of latest directions by the authorities, the members may use their discretion to install Solar Systems, Club House, STP and other facilities and amenities, which translates into more in-house amenities.
Retaining Ownership of the land and easy Handover at the end of the project
- The most important advantage of self redevelopment is that during this entire process the property rights are with the society and all the documentation and plans are in society’s name.
- Availing the “Occupancy Certificate” is not a problem, since the members tend to develop the buildings, ONLY as per approved plans.
- Selling of common spaces and other under-hand dealings are avoided.
- Any issues of parking spaces can be resolved internally.
- Buildings can be completed before schedule, thus saving Rent for members.
Extra Space, Surplus and Amenities for the Society Members
- In the case of self redevelopment of a housing society, the members get higher extra space as compared to builder led redevelopment.
- The extra flats or sale flats that will be created in the new building, can be purchased by the existing members on cost basis or can be sold to people outside of the society as well.
- The surplus or profit created by selling off such extra flats comes back to the society members