The majority of home buyers get torn up while choosing whether to buy a ready-to-move property or an under-construction property. While it is true that ‘you get what you see’ with ready-to-move properties, there are a lot of hidden benefits when buying an under-construction property.
Today, we can see that most of the projects by Kumar Corp get sold while the projects are still under-construction. Why do you think so many people are preferring to invest in an under-construction property ?
We have to understand that as the construction of property progresses, so does the price of that property increases. This is mainly because as the development in the surrounding area enhances, that also adds to the value of the property.
Thus, if factors such as location, property size, amenities, builder etc. remain the same, a ready-to-move property is likely to cost much higher than an under-construction property. The difference in pricing may vary by around 10 to 30 per cent.
Thus, even if the waiting period for an under-construction project is higher, it is worth the price difference.
Another advantage is that investing in an under-construction property yields higher returns than a ready-to-move property. Say, if you buy an under-construction property at an initial state and you sell that property after completion, you will receive very good returns.
To add to it, builders usually provide lots of offers and discounts on under-construction properties making them yet cheaper. With such price benefits, it becomes much wiser to buy an under-construction property.
Also, you get to observe the construction from start; meaning that you can watch the quality of material used during construction and material used for fittings and fixtures; and take note of whether they are being used as promised by the builder. With ready-to-move properties, you will never know if the quality of construction matches the promises made by builders.
You also get to compare prices and better deals. The biggest advantage comes in the form of paying through instalments. Generally, you need to pay around 10% of the value of the home as the booking amount and the remaining can be paid over the years. The time period depends on how fast the construction work is going to be completed. This way you get flexibility from the financial burden.
However, there are a few things that you need to keep an eye on before investing in an under-construction property.
- Check if the property is registered with RERA :
When a property is registered with RERA, the builder is compelled to finish the construction within the documented time frame. This provides the investor with the security of getting the house on or before the possession date.
- Check the credibility of the builder :
Make sure that the builder is an experienced and reputed builder. A fraudulent builder can bring massive losses to the buyer. Always try to opt for a trustworthy builder who has been in the real-estate business for years.
Kumar Corp is into the real-estate business for more than 56 years and is one of the most experienced builders in Pune.
- Check if the property is applicable for bank loans :
If you are planning to go for an under-construction project, go for the projects that the bank approves. Thus, the bank can evaluate the project and understand the credibility of the developer before sanctioning the loan.
All the projects by Kumar Corp are applicable for bank loans.
- Verify the builder-buyer agreement :
While buying any under-construction property, there should be a builder-buyer agreement. Go through it, read each and every line and understand every term and clause. Note if the completion time is mentioned or if it is uncertain.
Wishing you a happy home-buying experience !