Purchasing an under-construction property has several benefits including price competitiveness, protection under RERA and the possibility of earning healthy return on investment. Here’s why you should choose an under-construction property -
Everyone wants to own a home once in a lifetime. However, choosing an under-construction property is a difficult decision to make, especially when several projects across cities are getting stuck due to various issues, lack of funds being one. Therefore, when you buy a home, be mindful of every detail such as the design, neighborhood, rooms, budget, construction status etc.
Post the implementation of Real Estate (Regulation and Development) Act [RERA], more people are looking at investing in property. Let us now see why this is one of the best periods to buy an under-construction property.
Price competitiveness - An under-construction property is cheaper than a completed project. The cost of a property usually rises as the project nears completion. Generally, an under-construction property is around 20 to 40 percent cheaper than the ready-to-use apartment. This in turn benefits the buyer with lower EMI’s.
Enhanced regulation under RERA: Post implementation of RERA, homebuyers are ensured that the under-construction projects are completed and possession is given on time as promised by the developer.
Further, the regulator ensures that the developer delivers the unit sizes and facilities, as promised at the time of purchase or signing of the sale agreement.
Under RERA, developers can no more make structural changes without prior approval from the buyers as it may change the cost of the property. Moreover, buyers are allowed to make minor changes such as interior layout and electrical and plumbing fixtures based on choice and budget.
Spoilt for choices: An under construction property gives the freedom to choose the type of flat, the view and the floor as per requirement. Buying an under-construction property comes with an advantage that the buyer gets a new, unused house, whereas, a ready flat, that has not been in use for a while will require a lot of time, money and effort to restore. Such hassles are avoided when you buy a flat which is under construction.
Investment: The low cost of under-construction homes helps buyers earn a return on investment on resale. Post the completion of the project, it will command a higher market value than the cost at which the buyer would have purchased.
In a nutshell..
With the implementation of RERA and GST, investing in under-construction units has been made easy. Investors should make a choice for an under-construction property depending on the financial status, choice of location, developer’s background and desired amenities.