It has been seen that buyers are veering more towards ready to move in properties but there are a number of advantages of buying an under construction property. Depending on one’s financial backing and preference, under construction properties comes with their own share of benefits. With some careful consideration to location, price, developers and infrastructure, an under construction property would offer higher appreciation.
Here are some of their benefits:
- More affordable: Under construction properties are more affordable compared to ready to move in ones and there are a lot more options to choose from. Earlier there was a shadow of doubt earlier whether the property would be delivered on time or not but with RERA in place, the chances have reduced as they must pay compensation to the buyers if the property is not delivered on time. The price points are low because at this time the price per square foot is much lower compared to a ready property. Moreover, one can choose the unit one wants by having a look at the layout as compared to a ready to move in property where all the best units are sold and one has to choose from what is left.
- Infrastructure and Location benefits: Naturally, since the apartment is being bought at a lower price, the appreciation is also expected to be much higher in the long run. As construction goes on, the price of the property also increases. Those who are buying the property for investment should track the price growth of the property and look for higher returns on investment. One should check the location, upcoming infrastructure of the region and the amenities that one will be able to enjoy, along with the transport facilities and employment opportunities. Ready to Move properties also have price appreciation but it is higher and faster in the case of an under construction property. Even if the property location does not have all the infrastructural benefits you are looking for, they usually come up in the one or two years time during the period of construction and by the time one is ready to move in, everything is in its place just as one had wished for.
- Flexibility in Payment: There is also the question of flexibility in terms of payment. Those who are thinking of moving into a ready to move house also have to pay a huge lump sum in a very short span of time. If they do not have the resources themselves, then they have to opt for a home loan and subsequently pay high rates of interest on them. In the case of an under construction property, the amount has to be paid in phases and that much easier on the pocket and the loan amount, if any, is also considerably lower. This is a huge advantage for those who are on a budget. So they stand to save a lot of money in the long run as they had already booked the unit at a comparatively lower price per sq feet and would also have to pay in phases.
- More Options: In case of an under construction property, it is guaranteed that the property is new. One can also check from time to whether the layout has been followed and everything is according to plan. A ready to move property leaves very little room for any changes to be made and one simply has to settle for what is available. The ready to move properties are often resale or have been constructed a period of time ago and has just not been sold because the buyer was waiting for the prices to go up. Why spend all that money on an old property? An under construction property would have all the latest features and amenities.
- Discounts and Offers: The buyer can also enjoy a number of discounts and offers on under construction units and developers often have attractive schemes like foreign trips, discounts on price per sq feet, gold coins and free parking offers to sell their apartments. There is also a greater scope of negotiating with the developer at this stage and will help you get a better deal.
Hence, if you do not need an apartment immediately, try going for an under construction property and it will definitely yield better results in the long run.
