Before purchasing a home, people take a lot of time to decide the location as well as the budget. However, the most important decision a real estate investor has to make is whether to purchase an under-construction property or not.
Most of the potential home buyers assume that purchasing an under-construction property will cost them less compared to a developer apartment. This idea is true but there are some disadvantages of purchasing an under-construction property.
In this article, we will discuss the Advantages and Disadvantages of Under-Construction Property.
- The Price is Low:
One of the best Benefits of Buying under Construction Property is that it’s quite affordable. Unlike other fully developed flats where the price is getting higher, under-construction properties will always be available at a cheaper rate.
- The Scope of Appreciation:
Buying a House under Construction will give you a high return on investment. No matter if you purchase a 1BHK Flat in Vile Parle East or a 3BHK property, it will always be one of your worthy investments in life. This is because the price and resell value of the property will grow once the construction is finished.
- Lots of Available Options:
Unlike a developed flat, you don’t have to wait for the approval of a buyer or consumer to sell a flat. Another advantage of purchasing Under-Construction Property is that you can directly purchase the property from the builder that will provide you lots of available options.
- Customize Your Payment:
Nowadays developers of Under-Construction Flats accept a lot of payment options as well as construction-linked plans, where you can pay as per the growth of the property. This payment system is easy and convenient.
- Delay in Possession:
One of the most serious Disadvantages of Under-Construction Property is the possession. The date of the completion might get delayed due to several issues such as legal disputes, financial problems, or slow speed of the construction process.
- The Quality of the Apartment Might Get Compromised:
Many people purchase under-construction property hoping that they will receive a good apartment. However, the property is under construction and you don’t know what the final result will be. You might get a good quality flat or a bad quality flat depending on the developer and your luck. This is the main reason why many people avoid purchasing under-construction flats.
- No Income Tax:
Remember that income tax benefits will be utilized on home loans only when you get possession of the flat. This will be a headache for you. Hence, buyers end up paying EMI as well as rents and still receive no tax rebates.
- End Product Might Not Satisfy Your Expectations:
One of the major problems of purchasing an under-construction property is that you might end up receiving a different product. You might notice major differences between the planning and the actual property.
These are the advantages and disadvantages of purchasing an under-construction property. Remember that your house is a one-time investment. Additionally, the resale value of a property must be higher than the purchasing price otherwise; it will be seen as a vague investment.