An Overview of Under Construction Projects in India

Yes, ready to move in homes sound more convenient than that of an under construction project. But are they really?

As prospective buyers, many seem to have more of an interest and find more expediency in purchasing a ready to move in properties over an under construction project because it has 'everything'.

To begin with, the biggest boon on purchasing an under construction flat is the low cost! You will gradually notice that this low-cost purchase that you have made will not only give you an initial push, but a perfect long term financial push as the price of your property will only increase as the property increases keeping in mind the location, upcoming infrastructure and the various tech parks and educational institutions present near the under construction property and then proceed to make the purchase.

The add on to this big advantage to an under construction project is the fact the after RERA, and the purchaser will feel a lot safer and secure to having bought the under construction property as during the beginning the prices are low and therefore the scope of your investment doubling or more is way higher this way. Although for higher returns on your investment, you need to ensure that you have to keep an eye on the factors mentioned above. Never the less its is an unsaid fact that the price points will automatically increase after your purchase of the under construction flat.

Apart from the price point being a major benefit, an under construction project is a completely new construction which you are getting. Upon purchasing these under construction properties, you do not have to worry about those troublesome repair works anymore. As soon as you make the purchase, you can move into this space and proceed with it the way you please. One big "raison d 'être" for purchasing this is the very fact that you will be receiving all new features along with your flat.

Another main feature while purchasing an under construction project is the fact that you are paying just 10%-15% as the booking amount which can be paid either as EMI to the banks or as per the constructions plan itself. This way, you can call it a rather flexible payment method; therefore, the hassle of having to arrange a large sum of money will be avoided to the max. Although a ready to move in apartment does not come with discounts and offers, in fact, you make you pay a higher cost in accordance to the market, but in the case of under construction properties, there are various discounts and offers available to the buyers who also lets you negotiate.

Although it seems all so convenient here are a few things you must keep a lookout for when you are purchasing an under construction project. The builder has the upper hand, and you do have a say in most cases during the purchase. The builder will give you his terms and display his agreement, which is in most cases favourable to the builder, before you and none of your questions will be entertained further, therefore, left with no choice but to pick that project as you are tired after searching high and low and now you just want one final one.

The disappointment will kick in, even more, when your builder is a professional procrastinator and does not finish your flatwork prior to the deadline date and takes his own sweet time for any progress to even happen. There have even been cases where the builder fails to stick to the building Bye-laws, and they construct illegal floors against the municipal guidelines which must be ensured at all costs by your end as a buyer to avoid future complications.

Coming to the payment of the builders, they expect more than the majority of it before the sale deed registration and the terms and conditions this will cause a compromise on the quality of the final product which was promised prior to the purchase of the project.

Therefore, to prevent all these cumbersome or fraudulent acts by the builders, make sure the builder is committed to the OC and 'A' Khata in writing, making it a part of the sale deed. Since the payment is on your end of the deal, make sure the banks release the payments to the builder only upon your written approval on a stage-wise basis. Do not worry about the quality and commitment by forming an association with other residents purchasing the flat. As a result, the chances of ensuring the quality and on-time delivery of the construction is ensured.

With apartment constructions and similar under construction properties with the latest technology and safety modes being implemented growing so fast, in and around your locality, there is an increase in availability for you to choose the reliable developer who not only performs his side of the contract efficiently, but he also hands over all the documents to the resident's associations for your under construction project, and you are good to go.