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Five unique benefits of buying under-construction flats

Manu — Thu, 28 Dec 2023 09:09:00 +0000

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.

The post Five unique benefits of buying under-construction flats first appeared on Trupaisa.

Plots vs flats: Which is a better investment option

Manu — Fri, 22 Dec 2023 06:34:47 +0000

Plots vs flats? This question always bothers us a lot. Isn’t?

When it comes to property, there are always two sides to every story.

On the one side, you have those who believe that plots are the best investment option because they offer long-term stability.

On the other side are those who believe that flats are a better bet because they offer more flexibility and are more likely to appreciate in value.

So, which is the right decision for you? Let’s look at the pros and cons of each type of property.

Appreciation in Value

When it comes to real estate investment, one of the most important factors is the potential for appreciation in value.

Plots tend to offer a long-term return on investment (ROI), which means that over time, they are likely to increase in value. This is because plots typically have a higher demand from buyers and therefore experience more pressure to rise in price.

Flats, by contrast, can be bought and sold at any time – making them more flexible than plots – but this also means that they are less likely to appreciate in value over time.

Of course, this doesn ‘t mean that flats are a bad investment option.

On the contrary, many people choose to invest in flats because they are looking for a more immediate return. For some, this may be the best way to invest because it offers a higher rate of return (immediate) than plots.

However, if you’re looking for long-term stability and high appreciation potential, then plotting is likely to be a better choice.

Stability

One of the benefits of plots is that they offer greater stability than flats.

This means that there’s less risk of them being lost or damaged in an event like fire or earthquakes .

This seems to be a general perception.

However, we should take this idea with a pinch of salt. With the advent of latest technologies, construction are offering world class structural stability to buildings. Look at Burj Khalifa.

Ease of acquisition

Another important factor when it comes to real estate investment is ease of acquisition.

Plots can be difficult to purchase outright, which means you will likely need to partner with someone else or go through an estate agent.

Flats, by contrast, can often be purchased directly from the seller.

If you are looking for properties in Lucknow, you can call Mr. Manu to discuss your requirement. Call at +91 7800 207207
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Earning

A built-up flat can be rented out to fetch you some income, whenever you want, which is difficult, if not impossible, with a plots.

There is no income from plots until you build some structure on them.

Standard of living

A plot of land is a symbol of status/ wealth.

A plot of land has no spatial constraints, so any structure built on it can accommodate a large number of people, depending on the size of the family and its needs. As a result, having one’s own home can be said to improve one’s standard of living.

Flexibility in modification

While age has no effect on a plot of land, the condition of a flat can deteriorate over time.

Houses frequently wear and tear, necessitating re-modeling or re-construction for proper maintenance.

Furthermore, you cannot expand or change the layout of a flat in the future.

Plots, on the other hand, provide greater flexibility in building a structure, whether it is an office space or a standalone residential property.

Income

In terms of income, what is the difference between a plot and a flat?

A ready-made house can begin earning rental income as soon as you invest in it.

A plot, on the other hand, will generate no rental income until you build a house on it.

However, if you build an apartment on your land and sell the individual units, you will profit handsomely in the long run.

Financing

Which is easier to finance: a plot or a flat?

In general, it is challenging to obtain a mortgage to purchase a raw plot.

However, it relatively easy to get a loan for a flat/ apartments/ villa or, a completed house.

You can get loan up-to 90% of the property value. Moreover, you can choose a loan tenure between 5-30 years.

Tax benefits

Tax breaks are not available for a single plot. Only after the construction is completed can you claim tax breaks. However, full tax benefits are available from the time the home is acquired.

When you take a home loan to buy an apartment or a builder floor, the monthly loan repayment reduces your tax liability.

You are eligible to claim a deduction of up to Rs 1.5 lakh in a financial year for the interest you have paid on the loan.

In the case of plots, tax deductions on interest are only allowed from the time the construction is actually completed.

Convenience in property acquisition

Building a house on a lot is a labor-intensive process that requires dedication and personal time.

Making a plan, hiring architects, locating labors, securing funding, supervising the construction, and making numerous hurried runs are all necessary for the construction of a plot.

But purchasing a flat is very practical.

The builder is in charge of its construction. Only when the apartment is ready for occupancy do you need to finish the interiors. Not only this, flats comes with world-class amenities like a central parks, gym, pool, parking, 24×7 security, etc.

Security of your property

You will need to make a separate investment in security unless your plot is in a gated community. However, apartments are frequently located in highly secure gated communities.

Amenities

In plotted developments, common amenities like a swimming pool, gym, club, etc. are not always readily available.

An individual finds it challenging to invest in all of these facilities.

However, gated complexes contain all amenities like a swimming pool, gym, club, and shopping centre. The residents split all expenses.

Legal Issues

One of the plots’ main characteristics is that they can be illegally placed. To be safe, it is best to consider buying land in gated communities, as the builder will take care of it on your behalf.

If not, do thorough research on any disputes before purchasing land, and keep an eye on it until you build your home on it. Many issues concerning land capture arise on a daily basis in India. Although these concerns are significantly less when purchasing an apartment, they do exist.

Ensure that any apartment you purchase is RERA registered in order to maintain the integrity of all business dealings. The RERA act ensures that the developer gives you the apartment that was promised. If the builder didn’t meet the requirements, it would be a criminal offence and he could go to jail for it. Instead, he would have to compensate the buyer.

Delivery and transfer of possession

Transferring ownership of an apartment can take months or even years. Plots are usually ready for possession at all times. As a result, a buyer looking to invest in a plot of land will receive possession much sooner than a buyer looking to invest in a flat.

Reasons to Invest in a Plots

There are many reasons to invest in a plot of land. Here are four key reasons:

To create your own space. A plot of land can be the perfect place for you to set up your own home, or to build a business orchard.
To grow food (Agriculture purpose). A plot of land can be an ideal location for growing vegetables and fruits, grains, flowers, and herbs – whatever interests you! You will have complete control over the plants and nutrients they receive while maximizing yields.
To enjoy nature. If you love spending time outdoors, a good Plot of Land can provide the perfect environment for hiking, fishing, camping, and bird watching.
To make money. A Plot of land can be a great investment if you plan on using it to generate income through agriculture, forestry, or property development.

Reasons to Invest in a Flats

Some of the reasons to invest in flats are as follows:

Rental Income: If you are looking for regular rental income then buying flat is a good option. Moreover, having one’s own space (flat) not only reduces your recurring (monthly) expenses, but can also improve one’s quality of life by providing a sense of independence and privacy.
Affordable living: If you include a cost of plot and a cost of constructing a house on plot, it will cost to earth. Whereas, you may get a flat with all amenities in half the price. Just a proper research is required.
Amenities: If you are keen to enjoy world-class amenities such as club house, swimming pools, 24×7 securities, gym, etc. you should certainly invest in flats/ apartments instead of investing in plots.
Easy of financing: As you know, its slightly difficult to get loan for purchasing plots (only) in India market. Whereas, if you want to buy any flat/ apartment/ villa, its quite easily available. All you need to ensure is that it is approved from local/ competent authority.

Conclusion

So, finally which is better investment plot or flat? What is the difference between Plot and Flat?

By now, you would have got a fair clarity on this.

You know…It all depends on your financial goals. But at the end of it, both investment options can help you achieve your targets in a very quick time.

It also depends on how much time you want to invest as well as what is your area of interest.

There are many properties supply companies which offer plots and flats that match customer’s requirements. All you need to do is select one from them and start investing!

PS (Post Script)

It is important to consider the current market conditions and expectations.

While there are many variables that go into property investment (location, size, amenities), analyzing the current market can give you a better idea of what to expect if you decide to purchase a property.

It is important to consult with a real estate professional who can provide an assessment of your specific property investment goals as well as realistic expectations for return on investment. When investing in real estate.

In addition, real estate professionals can help you assess potential risks associated with your specific investment and provide information on possible returns based on local market trends.

For properties in Lucknow, feel free to call Mr. Manu at +91 7800 207207/ 85458 84804.

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