Introduction
If you find a great under-construction flats/property, there are many benefits. For example, this type of property tends to appreciate better than one that is ready to move in.
If you do your due diligence on the project, price, developer-related factors like experience and track record, location, plus other metrics, you can often win with under-construction properties.
Here are five unique benefits of buying property in an under-construction flats.
1- Lower cost of acquisition
As we all know that the under-construction property is cheaper than finished one (ready-to-move).
Assuming factors such as credibility of a developers, locality, projects features & amenities, surrounding infrastructure are similar to that of ready-to-move project, then, certainly, going for under-construction property will be a save you a lot of money. In most of the case, saving is in the tune of 20-30%. I think this is enough to excite you. Isnt?
Of course, in case of under-construction properties, you will get your dream home in a while, but after enactment of RERA, the risk of delay in projects is highly reduced because if developers miss their deadlines, they have to pay heavy penalty – which works to an advantage for buyers. This makes you safe and secure.
2- Higher RoI (Return on investment)
Since you buy at a lower price the appreciation is expected to be higher. As the construction progresses, the price of your property will also increases.
Typically, a project goes through a following stages:
Pre-launch, launch, initial stage, mid stage,near possession and finally possession.
And it is a established fact that earlier we entre the project, lower the price we pay and thus higher the appreciation we can expect. But we should not over look the due-deligence part on our part.
3- Flexible Payments
Payment flexibility is one of many benefits to buying under-construction properties.
In case of buying a ready-to-move in property wherein you must pay the entire sum at once (self-funded or, by taking a bank loan), but when you buy a under construction property, you only have to pay 10% or 15%, depending on payment plan.
In some of the case, developer offer some special payment plans wherein customers are supposed to pay a small amount up front and balance amount during possession time. This reduces the burden from customer’s shoulder significantly.
Not only this, it presents greater flexibility in terms of financing options, in case it is not self-funded. As the construction plan progresses, it give you enough time to plan and manage the balance payments.
4- New Construction
Most of us want the best in the market, the newest features, amenities etc. Isn’t?
We know that each product and real estate project comes with a definite life span. If we buy a old (re-sale) product then definitely the remaining usable life will be less in comparison to a newer one. Not only this, new project comes with new technologies as well.
Now a days, developers are using MIVAN technology to construct high rise buildings. This is far superior than the older ways: using red bricks or ash bricks.
Some of the developers are also deploying many security features to ensure safe and secure living environment for your loved one.
5- Discounts & Offers
Who do not want to lure all customers to their product and services?
Developers are not a different breed? They know that many of us consider ready to move property instead of under-construction property.
In order to lure customers to their projects they don’t shy away to extend lucurative offers such as foreign holiday, free parking space, some discounts on BSP (basic sales price).
Offers varies from project to project and market to market. Bigger offers are quite prevalent in NCR (national capital region), Mumbai etc.
However, in other markets, builders/ developers offer no or, neglible discount/ offers.
Nevertheless, offers alone should not be the deciding factor in your decision making process. Focus should be on analyzing all critical factors of the home buying process.
