Here we highlight the advan tages and disadvantages of under-construction property to help you make an informed and suitable choice. Ideally, the decision has to be taken considering individual position, need of property, capability for finance, whether that particular property is mere investment or is being taken for end-use, such factors determine your choice.
When you book a ready-tomove-in flat, there are fewer options to choose particular apartment with desired location, view and floor. These are already there. You have to accept them as they are.
While in case of under-construction property, one gets an array of options to choose from. Flexibility for payment is the biggest advantage of under construction property.
A buyer has an option to make the payment in chunks stage wise as the building gradually constructs. Buyer pays the down payment, which is mostly 20 per cent of the booking amount and rest is paid in the form of the EMIs in case of loan, else they can pay the money in installments as per the construction schedule.
This makes buying an under construction property a comparatively affordable option.
In case of under-construction home, usually a buyer gets several payment plans, which includes construction-linked plan, down payment plan, 30:70 scheme, 20:80 scheme to name a few.
Investing money in an underconstruction property is ideal for the ones looking it as an investment. Since prices are lower, one can garner good returns.Thus, the scope of price appreciation due to future development is high in these newlylaunched projects.
However, to avail this benefit of price appreciation, one must do a basic study about the proposed and ongoing development plans in the region before buying a property.
While it isn’t all milk and roses, there are few loopholes that have to be de terred. The most ba sic issue when buying an under construc tion property is pos session. The incidents of delay in com pletion of projects have increased tremendously in the past three to four years.
In certain cases, developer starts the construction before getting all the requisite approvals. Thus, it is imperative to check that the particular developer is really committed to complete the project or else you may have to pay extra expenditure on EMIs, interest on EMI and rent. Many a times in past it has occurred that the builder uses the collected money to finish some other project and the buyer here keeps waiting, so credibility of builder is must.Another important step is to keep a check on whether the quality that is promised is met with. Sometimes the layout is changed, while sometimes no adequate storage space is provided.
