Tips Before Investing in an Under-Construction Property

When you invest in a property under construction you are able to buy at a low cost. However by investing at this stage you also have to bear what is known as a development risk. Development risk could be delayed completion or the property will not be of the quality promised by the builder or may be hike in payment. For example- the Construction Status of Ghaziabad Property went through several ups and downs over the last year. A lot of problems can raise their heads. A little research and lots of sound advice can help you in the long run.

Tips Before Investing in an Under-Construction Property

You have to take into consideration that whether it pays to park your money in a project that is still some time away from completion. The primary advantage is that this property comes cheaper depending on the stage of construction.

  • Invest in an under construction property by a credible and reputed developer. Check the developer’s bonafide and market standing.

  • Ask for a copy of the project drawing or blue print duly attested by the municipal corporation/authorities.

  • Location is very important as it plays a major role in future appreciation potential.

  • Check on options to choose a construction linked payment plans which are usually structured on a project to project basis.

  • Check for changes in the original development plan if any. Certain changes are usually permitted and mentioned in the agreement, but still check for the gray areas in the blue print which can create problems at a later stage.

  • Ask your developer what happens if he does not give you your property on time; is he liable to pay you a compensation or interest? Clear this with them or later on they may refuse.

  • Ask for copies of all necessary permissions before making a financial commitment.

  • See that the project is funded by a known bank, because the bank will do a complete background check before funding a big project. Make sure your developers have all the correct approvals.

  • Many developers are offering assured returns on investments, but again there is an element of risk involved. If you have issues then the best option is to go through a property advocate, he/she will take care of everything, but choose one who is well qualified and experienced in the field of real estate. A little care and sound advice can help you invest in a property of your choice without losing sleep.

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