Merits and Demerits of Booking A Flat in an Upcoming Realty Project

One of the main benefits of under-construction residential projects is that they are less expensive to purchase than finished homes. Considering that there is a window of time between the buying stage and the project's delivery date, under-construction projects also produce better profits.

However, purchasing a property that is still being built has significant disadvantages. One of them is that there is a greater risk that the builder might not deliver the property on time. You would not be able to generate a good return on your investment in such cases. You must make sure you have investigated the builder's history and reputation before investing in the property that is still under construction as this can lower the risk. 

Benefits of Booking a Flat in an Upcoming Realty Project

Lower price 

One of the most crucial factors for a buyer is the price of a house. An under-construction property will probably be less expensive than one ready for occupancy. RERA requires developers to complete the construction as scheduled, and if they don't, they must compensate the customers.

You must select a quality project and a dependable developer. One shouldn't purchase a house because it is less expensive.

Higher Appreciation

Because you are purchasing a flat at a reduced price, a higher appreciation is possible. The value of your home rises as construction advances. Buyers should investigate the site's location, planned infrastructure, and job centres to ensure a strong return on investment. The price often rises when a reservation is made until a person takes possession of the unit. The value of the units should logically rise as well, but the gain in value would be greater during the under-construction period.

Payment Flexibility

A buyer must pay the entire sum upfront when booking a flat. Additionally, there are registration fees and other costs. When you purchase under-construction flats, you pay a booking fee instead of the full price of the flat. You pay the rest of the amount according to the construction schedule. You can purchase a flat that is still being built with flexibility in terms of payment and without having to set aside a large amount of money.

Discounts and Offers

Finding a ready-to-move-in property with any discount or offer isn't easy. You must pay the market price or perhaps more depending on the amenities for the entire house. If you are purchasing a property still under development, you get access to many discounts.

Better and more extensive alternatives are available when you reserve a property that is still being built. In light of this, you are free to choose the floor of your future apartment and the allocation.

The Demerits of Booking a Flat in the Upcoming Project

Not Meeting Deadlines

One of the most frequent problems with projects still under construction is their completion. Most often, the project is delayed for various reasons, and the customers face the repercussions in every case. Depending on the builder's competence, the project can be delayed by two, three, or five years.

Site and Construction Conflicts

No builder will disclose any site or construction disputes to you at the time of the unit sale. You need to check the history of the project. The site and construction conflicts could delay the delivery of your property.

False Projections and Promises

It is one of the most prevalent and severe problems with properties still under construction. Customers are given a long list of promises by builders regarding the infrastructure and amenities, but they frequently exaggerate. Some builders make false claims regarding other amenities like swimming pools, well-kept parks, power backups and water supplies.

Compromise on Quality

The sample home, which the builder shows you, are often constructed with all available amenities and the highest quality materials. But when you acquire the house, you might discover that it differs significantly from the sample home. Sometimes, the builders employ subpar materials, like inexpensive sockets and switches and low-quality doors and windows. They make every effort to lower the cost of building and timely finish the house to save money.

Loss of Income Tax Benefits

Once you take ownership of the property, you can file for income tax benefits. The property that is still being built has no tax advantages. If the project is further delayed by another two to three years, you can potentially lose out on the income tax advantages associated with your under-construction phase.

=> Read Also:- Possession Certificate Meaning, Benefits, Types & Know How to get Possession Certificate

Conclusion

Considering the numerous benefits of booking a flat in an upcoming realty project, it is advised that purchasing a recently launched property is the safest decision for investment. But without the RERA certification, you will be making a blind investment in a property that might not turn out as the model project depicted. You should check out Adani Realty projects and make your decision accordingly.