There is completely no confusion in the fact that everybody wants to purchase a home, a dream house which they is their own. Buying a home involves long-time financial commitment, and you need to be in the position to afford this investment. A house under construction definitely would be cheaper than the one available for buying or the ready to move homes.
Purchasing an under construction house is the most preferred and popular mode of purchasing a house. The primary requirement will be to find out an alleged builder and check out the track records of the developer or builder. It is advisable to always invest with a well-placed and well known builder only.
Under such conditions, a builder markets in TV, newspaper, and other mediums about the new housing complex that will be coming soon. Agents begin going around the markets, malls, companies, and even different houses located in different localities to market about their new housing complex, which will be coming up soon in the city. The aim of builder is mainly to sell out as many flats/houses as possible even before the complex is built. More than 75 percent of the flats build by known builders are sold even before a brick is laid in most cases.
There are several benefits of buying an under-construction house as given below:
1. You begin paying conveniently & slowly
2. Choices of location or floor are much wider
3. Excellent Scope of Rate Increase
4. Cheaper
5. Low EMI
6. Beneficial both for buyers and sellers
7. High returns
What Should You Check Before Buying Under-Construction Home?
To start with, if you are buying an under-construction home, the market standing and developer’s bonafide should be researched and verified carefully including.
A buyer is permitted to request a copy of project’s drawing, duly stamped by municipal authorities as well.
Buyers should check the history of the home builder too. If the property builder has done good job in his past, chances are extremely high that he will be doing the same again. But, in case the builder’s image isn’t good on the market, then you should avoid selecting that specific builder. Therefore the builder’s track record is of greatest importance.
Buyers must clarify loan tenure also and how the wealth will be paid on to the builder. Generally, some part of total price is paid in starting and rest amount is paid only after the end of project.
Locations should be selected for future appreciation potential.
Verify on options to select construction associated payment plans, which usually are structured on the project-to-project base.
Changes in Original Development Plan
Some necessary changes are permitted usually and also stated in the agreement. After actual construction starts, there may be some grey parts on the blueprint which come to light later only. Sometimes, this may engage new regulations regarding parking space or some other aspects beyond developer control.
Failure to Timely Hand over the House
There are many incidences as expected in a mainly disorganized market. Usually, reputed builders are found to hand over the property on time and according to promised specifications. However, small developers, often default by extending their projects beyond promised delivery date – at times as much as by a year or even more.
This is often caused due to funding issues. They also may skimp on the construction cost, banking on buyer’s ignorance of the quality parameters. At times, the drawings they give to the municipal authority are not detailed sufficiently, resulting in non-approval of the projects. There also are fly-by-night ones who pocket their customers’ up-front payments and then vanish altogether.
Most of the developers operating in the city centers are experienced and well-established players with good reputation. The occurrence of their unpleasant defaulting on promises made by them is lesser than 10 percent. However, it can be as higher as almost 15-20 percent in up-and-coming suburban areas due to large number of smaller developers. Lots of developers who reply to unexpected property booms in the suburban areas are traders simply who are putting the only project up, they will ever complete in their entire lifetime. They have no technical knowledge or experience and often don’t have bank backing them. Maximum emerging suburbs also are defined by uncertain land titles.
Precautions You Should Take
A prospective buyer must check in the developer’s credibility, performance, delivery records and past projects.
The buyer is entitled to request copies of all essential permissions before doing a financial commitment perfectly.
He should also make sure that your project is funded out by a well known bank and it should have all the right approvals.
In case there are any reasons for initial doubts, conducting a house purchase through a qualified and experienced lawyer in handling property-related issues is definitely advisable.
