Purchasing Under Construction Investment May Be Risky For Buyers
Questions may arise on whether investing in an under-construction property is safe? But the truth is when you want to commit in an under construction investment, you seem like gambling all your money. However, if you sell an under-construction property, you are actually offering a great deal for developers. If you are setting out to buy a property and are considering whether to go for a ready-to-move-in one or an under-construction property, you should know the benefits and drawbacks of both.
- When your flat is still under construction, the payment is connected to the construction progress. It is quite a relief for buyers as they are not required upfront payments.
- Buyers have the choice to prefer a floor, a direction of the house, and more.
- Under construction investment may be profitable if paid from your own pockets.
- You have the option to specify modifications and requirements during construction.
- You also have the option to choose your own interiors based on your preferences and requirements.
- The biggest drawback one can encounter here are legal issues when buying an under construction investment. There are developers constructing a project without receiving necessary permissions from authorities. In case of problems, buyers also encounter the problem. It is not enough to obtain a starting certificate from development agencies. Developers must also have the permissions for Electricity, Water Supply, Pollution Control Board, and more.
- There are no clear indications for maintenance charges, as developers require charges as a lifelong affair. If they publicize the charges which vary differently, it can affect the future valuation of the flats.
- For some, they can be unhappy with the way the construction has been completed. Some features may not have been emphasized during the construction plan.
- Major problems such as water leakage can be experienced in new flats. You can judge better a flat once the construction is completed.
- Sometimes problems like delays in projects can be faced by some buyers.
- Buyers can expect high interest payments.
- If you are dealing with unreliable developers, they may include hidden costs in payments.
- Under construction investment may sometimes be built on land far away from the city center. You need to compromise the amenities associated with the new neighborhood.