Home seekers, mostly prefer buying apartments in under
construction buildings because they are less expensive than completed ones. Based
on the construction stage along with the response received from investors and
buyers, the developer may offer a discount of 15 to 30 percent. Moreover, the
design of a particular flat can be altered without investing more money in
renovations. At the time of booking a buyer has to pay the booking amount only
and get a year at least for arranging the rest of the corpus. For fully built
properties, this is not possible.
However, all is not as rosy with under construction properties as there is a lot at stake when it comes to buying under construction homes or properties.
If you are thinking of buying a property prior to launch or during construction, you must inspect the location’s connectivity and social infrastructure, future returns from the project and whether the builder has the ability of timely delivering the project. If there is a sudden market crash or the developer exhausts his fund or the bank ceases to fund the project, the project may be stuck in limbo. Small developers normally do not have the funds needed for spearheading a project at the time of announcement. For ensuring liquidity, they attempt to sell the property to end-users and investors at pre-launch. If the minimum sales needed for launching the project are not reached, then the construction may be deferred.
Verifying the reputation of a developer is very important as there are several developers who enter to ride the high wave of the realty market, but, are actually traders who will be constructing this apartment complex for the first and last time in their lives. They are often devoid of bank funds, experience and technical knowledge. More often than not, they work on disputed lands. You must make sure you do not invest your money in such projects as it would never be realised.
It is advisable to always opt for construction linked payment plans where the payment needs to be made as per the construction progress of the building. Therefore, even if there is a delay in the project, your corpus does not get locked.
Make sure you hire an experienced attorney who specialises in issues related to real estate. Your lawyer will then be able to check the authenticity of the project and also the approvals that the builder has in hand.
However, all is not as rosy with under construction properties as there is a lot at stake when it comes to buying under construction homes or properties.
If you are thinking of buying a property prior to launch or during construction, you must inspect the location’s connectivity and social infrastructure, future returns from the project and whether the builder has the ability of timely delivering the project. If there is a sudden market crash or the developer exhausts his fund or the bank ceases to fund the project, the project may be stuck in limbo. Small developers normally do not have the funds needed for spearheading a project at the time of announcement. For ensuring liquidity, they attempt to sell the property to end-users and investors at pre-launch. If the minimum sales needed for launching the project are not reached, then the construction may be deferred.
Verifying the reputation of a developer is very important as there are several developers who enter to ride the high wave of the realty market, but, are actually traders who will be constructing this apartment complex for the first and last time in their lives. They are often devoid of bank funds, experience and technical knowledge. More often than not, they work on disputed lands. You must make sure you do not invest your money in such projects as it would never be realised.
It is advisable to always opt for construction linked payment plans where the payment needs to be made as per the construction progress of the building. Therefore, even if there is a delay in the project, your corpus does not get locked.
Make sure you hire an experienced attorney who specialises in issues related to real estate. Your lawyer will then be able to check the authenticity of the project and also the approvals that the builder has in hand.
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