Red Alert: Assured Return schemes

“Assured Returns” is one of the most popular terms used in commercial and residential real estate projects to attract prospective buyers. What #happens in this scenario is that developers promise a certain ‘Assured Return’ on their real estate projects, offering as high as 12-18% returns till possession. This alluring offer entices the gullible public to invest their money in “under-construction” projects. Different names are also being used to push such schemes in the market.

What are the Perils?
Safe to say that most of these “Assured Returns” offers are masked or disguised illegal Ponzi schemes. Investors should therefore get their radars up about investing their money where assured returns are promised or unrealistic returns are offered. Many investors have been reported as saying that developers either stopped paying them or the cheques got bounced after a few months of regular payments. Sometimes even the principal amount gets stuck and buyers find themselves totally ripped off. Hence, investors should apply caution and perform due diligence before investing their hard-earned money in such schemes.

The allure in such schemes is the advantage of a higher rate of interest. But if your principal is at risk then there is no guarantee of such returns. Matter of fact, you stand a high risk of losing both your principal and interest.