Investing in a building under construction can be a wise monetary choice for buyers and investors. One of the main advantages of doing so is the low purchase price compared to other ready projects.
A building under construction also enables buyers to opt for preferred units and personalise interiors to align with personal preferences. Also, these developments are placed in rapidly progressing areas, providing brilliant long-term value and infrastructure growth scope.
For those who wish to enhance profits and reap customisation benefits, such projects are a great opportunity worth considering. Let’s dive deeper into it!
Significant Cost Savings and Better Pricing
Early investing in an under-construction property can facilitate immense cost savings and enhanced pricing benefits. Here’s how:
- Low Entry Price: Normally, prices tend to be lower in the starting stages when compared to other ready-to-move projects. In prime areas like Kandivali East, under-construction 2 BHK apartments are generally priced on the lower side when compared to ready-to-move-in projects in the same area.
Though both might come with a similar set of amenities and location advantages, the under-construction unit can cost 15 to 20% less, thus offering buyers an opportunity to save money upfront and reap the advantages of price appreciation over time.
- Easy Payment Plans: Payments are distributed throughout the construction timeframe, thus easing monetary pressure.
- Value Growth: As the project approaches its completion, property prices normally go up. For instance, a buyer who booked an under-construction project in advance in Kandivali East can benefit from rising property prices by possession, reaping initial cost savings and solid value growth over time.
- Personalisation Benefits: Buyers might get choices with regard to finishes or layouts, alleviating the need to incur renovation costs in the future.
- Scope for Negotiation: There is a scope for negotiating the prices, add-ons, or payments in the initial stages.
- Financing Planning Time: The construction duration offers buyers more time to gather and arrange finances and also optimise EMIs.
- Freebies and Incentives: Developers might include various freebies, like modular kitchens or club memberships, to lure early-stage buyers.
For cost-conscious buyers and wise investors, under-construction projects provide a lucrative blend of reasonable pricing and long-term value.
Customisation and Personalisation Opportunities
A site under construction provides homebuyers with a distinct opportunity to redefine their area with impactful personalisation and customisation. Let’s see how:
- Flexible Layouts: Various builders allow modifications in the internal layout at a site under construction, thus offering buyers the choice to reconfigure rooms or add utility areas.
- Finishing Choices: From fittings to floorings, buyers can choose among a wide range of materials that cater to their style and budget.
- Smart Home Features: Personal choices in tech features like lighting, safety, and automation can be pre-planned at this phase.
- Traditional Considerations and Vastu Compliance: A site under construction provides scope to inculcate traditional or spiritual design choices in advance.
By making investments in a site under construction, buyers not only get a future home but also one that showcases their style, vision, and values from the ground up.
71% of homebuyers expect customisation choices like finishes, layouts, and smart-home integrations in their new homes. This shows how personalisation is no longer just a luxury but a core requirement for those looking at under-construction projects.
Developer Reputation and Legal Considerations
Selecting the correct real estate project is more than design and pricing – trusting the builder and getting legal clarity are important to a safe investment.
- Track Record is Key: A developer who has a history of completing projects on time with quality alleviates the risk of compromises or delays.
- Clear Land Titles: It is important to ensure that the property carries a defect-free title and no active disputes to avoid getting into any sort of legal issues.
- Regulatory Permissions: Projects that have complied with all regulatory requirements and permissions, including environmental and municipal ones, are secure bets.
- Transparent Contracts: A well-drafted and structured sale contract highlighting payment conditions, possession durations, and penalties for delays safeguards your interests.
- Regulatory Compliance: Properties registered under the real estate authority ensure buyers’ transparency and accountability.
- Litigation Assessment: Conducting a background check or looking into previous legal matters involving the developer can prevent one from incurring potential risks.
- Monetary Stability of the Builder: Well-known developers who have solid financials are less likely to delay or abandon the projects midway.
- Previous Projects and Customer Feedback: Referring to feedback from past buyers provides real-world information when it comes to checking the builder’s reliability and services after possession.
58% of homebuyers continue to assess a developer’s goodwill and performance post-buying their property – this is done to stay informed about their future investment decisions. Also, it showcases the paramount significance of carefully conducting research about legal records and project history prior to making a commitment.
Hence, navigating through a developer’s credibility via RERA compliance, previous deliverables, and legal history is vital to making a safe and informed investment.
Read Also: Must-Have Paperwork for Buying a Luxury Property in India
Potential Risks and How to Mitigate Them?
Though under-construction projects provide fruitful benefits, it is crucial to be aware of potential challenges and how one can take active steps to mitigate them efficiently. Let’s go through them:
- Project Delays: One of the most common risks is project delays. Select a developer who has a solid track record and ensure the project is registered under the relevant real estate authority.
- Modifications in Specifications or Plans: Features might be changed mid-way. You can ask for an in-depth, signed contract with specifications and penalties in case of deviations.
- Quality Checks: Finished quality might not align with what was earlier promised. Go through previously completed projects and include quality standards in the agreement.
- Legal Issues: Permission issues or land titles can obstruct the project’s completion. Check all the legal documents with a trusted property lawyer before booking.
- Monetary Burden: Unforeseen expense escalation or delayed possession can pinch finances. It is important to be consistent and choose flexible construction-linked payment plans.
Knowing about these risks and being well-planned by conducting the right checks and expert guidance ensures your dream home journey stays safe and hassle-free.
Read Also: Protecting Your Indian Property as an NRI: Legal and Insurance Tips
Final Thoughts
Opting for a building under construction offers buyers better flexibility, reasonability, and potential appreciation. It allows rational financial choices, structured payments, and the scope to personalize a home as per lifestyle preferences.
A building under construction also generally provides smart deals, early-bird choices, and advantages regarding urban design and amenities. Gradually, these projects tend to witness immense value appreciation as the neighbouring infrastructure evolves. Here, early-bird investing can pave the path to long-term fulfillment and financial prosperity.
Explore premium under-construction projects by Rustomjee and enter a world that embraces a future-driven living experience.
FAQs
- What happens if the developer delays the project beyond the promised completion date?
In case a building under construction gets delayed, RERA makes it compulsory for the builder to compensate the buyer, generally via interest payments on the paid amount. Also, buyers can claim a refund or file a complaint with the Real Estate Regulatory Authority.
This facilitates accountability and safeguards the buyer from monetary loss because of project delays.
- Can I get a home loan for an under-construction property, and how does the disbursement work?
Yes. You can procure a home loan for an under-construction property. The loan gets disbursed as construction progresses – this is referred to as construction-based disbursement, and interest gets charged only on the disbursed amount until the full amount is paid.
- Is it possible to resell my under-construction property before completion, and what are the implications?
Yes, reselling is possible; however, it depends on the agreement between the buyer and builder. You might be required to get the developer’s approval and could need to pay transfer charges, GST, or capital gains tax.
Few projects obstruct selling until a specific stage in order to assess the terms thoroughly. You can contact a legal expert to avoid paying hidden charges or future disputes.
