SHOULD YOU INVEST IN UNDER-CONSTRUCTION PROJECT?

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When it comes to real estate investing there are several questions in the mind of the buyer. Apart from the usual ones about location and price, Epoch India Advisors being a top real estate advisory firm receives a number of questions regarding the reputation of the developer, investment options, etc. 

Recently we came across a question, “Should we invest in an under-construction project.” 

The question has been popping up on several occasions. Since buying a property is one of the biggest investments that one makes, it requires serious deliberations. So here is our take on the question.

  • THE COST FACTOR
  • PAYMENT FLEXIBILITY
  • HIGHER RETURN
  • FREEDOM OF SELECTION
  • MODIFICATION APPLICABILITY

The cost factors

When compared to ready-to-move property, under construction property offers an attractive price point to buy. For instance, ready to move project by a top builder cost around or above Rs 5,200 per sq. ft. when compared to the under-construction project by the same builder would cost nearly Rs 4,350 per sq. ft.

Payment flexibility

When buying a property that is complete, a buyer is required to pay the total sum of the amount within a stipulated time that varies as per the builder's requirement. However, the project that is under construction provides you with the flexibility of different payment plans. In an under-construction project, the buyer only plays 10-20% at the time of booking while they remain is paid later which provides more time to manage personal finances.

Higher return

It is always considered beneficial for the investor to invest in the under-construction stage as it reaps the maximum profit. On average, the under-development project records an average appreciation of 15-20% till the time of completion.

Freedom of selection

Bidding while the project is in the early stages gives you the option to opt for the desired floor & desired unit. However, in ready to move property several units are already blocked by other homebuyers.

Modification applicability

In under-construction property, one can select the customization which most of the builder allows. Moreover, the continuous monitoring of the construction phase is another advantage you get.


Epoch India Advisors is a leading real estate consultancy & advisory firm offering highly curated services related to corporate leasing solutions, project marketing, real estate event & digital strategy.

 

 

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