Akhil Shastry moved to Bangalore from the US to start a new chapter of his work life with a start-up IT Company. He was not interested in a standard apartment, but rather wanted to invest in a contemporary penthouse in an upscale apartment complex. His rapidly increasing net-worth, combined with his aspirations of leading an affluent lifestyle played a major role in deciding to go for a luxurious penthouse, which was being sold at almost 60% more than the other flats. The penthouse was equipped with additional luxury features like a Jacuzzi on the rooftop and provided an amazing panoramic view of Bangalore.
He decided to finance 70 percent of the apartment cost partly with the hefty bonus he received the year before, and with his savings, he had set aside. When he approached the bank to secure a loan for the remainder amount, he was in for a rude awakening – the penthouse with all its posh amenities was an illegal construction, since the builder had not received sanction to build the last two floors. As the building had deviated from the original sanction plans, the City Authorities had not issued an Occupancy Certificate.
While having a penthouse as a primary place of residence is a statement of affluence, it is important to make sure that such investments are genuine and legal. Before embarking on such an investment, it is important to make sure that the authorities have sanctioned the building plans including that of the penthouse and that the building has been issued a completion certificate and an occupancy certificate.