Nervous, excited, tensed, stressed!! First-time homebuyers go through a roller-coaster of emotions when they embark on a journey as big as buying a home. The feeling of being a novice at the art of home buying and the apprehension of being unable to comprehend the red flags while choosing a home are some experiences that can make a determined homebuyer flustered to the core.
Well, truth be told, such a surge of emotions is normal. We are influenced by a barrage of factors while scouring for a home of our choice-location, price, resale value, neighborhood, payment plans and the like. But one of the most significant decisions that a homebuyer needs to make is whether to buy an under-construction property or a ready-to-move one.
For first-time homebuyers tired of being cooped up in tiny, rented accommodations even after forking a significant amount of rent money, owning a home has become a priority post-pandemic. The fact that their hard-earned money isn’t going into building a future asset for them, has goaded them into investing in a home.
Looking at how the pandemic has snatched the savings of millions through bleeding of stocks and gold, first-time buyers have become extra cautious in putting their entire savings at one go towards owning a property. Hence for novices, an under-construction home fits the bill, since it doesn’t burn a hole in their pocket and allows them to settle payments at an easy pace.
Here’s some other facts that can help first-time buyers cement their decision to go for an under-construction home.
- No worries in the pocket: Buying an under-construction home won’t give the buyer sleepless nights since one doesn’t have to make the payments at one go, which is required in the case of buying a ready-to-move-in home. Buyers can pay off the cost according to the stages of construction of the property and deposit the lump sum amount at the time of possession. Homebuyers can also utilize attractive pre-payment plans to pay without any hiccups. If we take factors such as property type, location, amenities into account, then a ready-to-move-in property will cost more than an under-construction property. In all, the buyer can save a minimum of 10-30% in the final pricing, which is a huge amount considering the buyer is a first-timer.
- Wider net-spread of choices & options: An under-construction property gives the buyer a wide array of options and choices he can select from. He/She can customize his/her abode according to his tastes and preferences, add features that suit his/her style of living and also choose the location according to the wishes and convenience.
- Better ROI in the future: Investing in an under-construction property can give you a good bang for your buck. Since you are buying the property at a lower cost during the start of construction, the price of the property will increase as the construction progresses till the property is handed over to the owner. Higher price appreciation of property depends on the right choice of location, social infrastructure, employment hubs and connectivity. First-time buyers should make sure they choose their property wisely taking into account all the above-mentioned factors.
- Brand-new construction: If you are investing a lifetime of your savings, why go for an old or resale property. Buying under-construction homes give you the benefit of getting a brand-new house with all modern and latest amenities, features and fittings. Such properties have a bigger shell life and buyers need not have to worry about repairing and other hassles that come with old ready-to-move-in properties.
- A raft of discounts & offers: Buyers of under-construction homes are always at an advantage since they are treated to stunning offers and mouth-watering discounts. Developers usually dole out concessions to obtain initial funding and get quick bookings on their projects. In the case of a ready-made property, such luxuries are scarce since the buyer has to settle the entire amount as per the prevailing market rates and amenities that come with the project.
Looking at the transparency of the Indian real estate sector in the past couple of years, and the proliferation of A-grade real estate developers in the market who hold most of the inventory, the trust and confidence of homebuyers in under-construction properties is high. Investing in this lucrative market where interest rates are low, property prices are stable and good discounts are on offer, it’s a great opportunity for first-time buyers to invest in an under-construction property and realize their dream of owning a home.
