Buying a house is a dream for many people once you reach 35 years of age. It is common for everyone in India to own their own house and it is largely dependent on the housing loan approval for lower and upper middle class people.
We do a lot of brainstorming with family members before zero in on the budget, location and the type of the property. Buyers are given a lot of options to select one for their needs. They can buy villa plots and construct their own home but villa plots are mostly available in the outskirts of the city , they can opt for gated community apartments or two floor standalone apartments , they can go for bigger flats at an affordable price in the outskirts or small apartments in the city centre. Likewise there are many things that have to be decided before doing a search.
One of the things the real estate buyers mostly confuse or have less knowledge about is whether to buy under construction apartments or ready to occupy flats.
Here we are giving out a few points to be considered while purchasing the under construction apartments in India.
1. Do research about the developer:
This is super important when you plan to buy an under construction apartment specifically if it is a large gated community apartment. Most of the developers assure the early handover while booking but it goes up to 2 or 3 years extra some time.
In metro cities like Chennai you can find many recent launches of gated community flats in Medavakkam and Tambaram. Since the market is open for any real estate players you can find a few new names in the market. We advise you to do thorough research about the developer. If necessary you can visit their completed projects and get feedback from the existing customers.
Ask them specifically on the RERA deadline for handover, don’t just trust on the random handover date given by the developers.
Delay in handover will make you pay the rent every month for your present stay till possession. Do some basic research about the developer in the market and while visiting just gauge the present stage of construction with the proposed handover date. If it is logical you are good to go, else wait for two or three months to observe the construction progress and finalise them.
2. Observe the material used in the construction
It is one of the advantages of buying under construction properties. You can see the quality of the materials used in the construction.
In a finished building you can’t see the quality of the construction materials used. You have to believe what the developer is saying. On the other hand you can observe and ask for the brands used in construction stage by stage.
In India, all the developers use ready mix concrete for the construction but you don’t know which cement brand was used. Using the quality steel, cement and RMC is crucial for the strength of the building.
3. Flexible payment :
Unlike ready to move apartments in under construction buildings developers don’t ask for the full payment and immediate registration. They give you a payment schedule and it is directly proportional to the stage of the construction.
You can speak to the bank on the payment schedule and release in parts.
4. Best offer price :
Developers offer lucrative discounts on the sqft rate during the launch of the projects. You can book the flat at an attractive price or with additional benefits like free car parking,free maintenance for a few years.
You can negotiate a lot with the builders in under construction projects. Don’t be shy and don’t forget to negotiate. Definitely you will get a good discount and it helps you save a lot in the total amount.
5. Check for approvals :
Before signing on the dotted lines don’t forget to check whether the developer received all the necessary approval to construct and sell the property.
Some developers started advertisements before obtaining the approval or RERA which is not legal and the right way. Though there are regulators to monitor the real estate it is mandatory for the buyer to check for the approvals in under construction projects. We advise you not to book a property in a proposed site until they start the construction. Investing in under construction property usually yields a higher return on investment due to the extended window period between buying and handover. If you sell the property closer to the handover time you get a good chance of earning a healthy appreciation on your capital.