Under-Construction Property, Yes or No? When we think of purchasing a new property, it is very difficult to know which choice is the best. We can look at ready-to-move-in houses as well as under-construction properties. There may be days where you visit many properties in a short period of time and in the end are left with a dilemma. Confusion like this is normal and natural. Before making this crucial decision, you must know everything about the purchase, right? Therefore, you should be aware of advantages, costs, future returns, mode of payment, uncertainties, and more. In short, you should know everything.
You shouldn’t make important decisions in a rush, especially those involving purchasing a property. In this blog post, we will teach you about properties under construction.
What is an under-construction property?
An under-construction property is a property that is yet to be completed. In properties still under construction, you have the option to alter an aspect if you aren’t confident about it.
Moreover, it is easier to evaluate the work. Also, you can keep a regular check on the construction quality, as it is still in process.
Many real estate companies in the market offer their customers under-construction properties. Erisa Projects is one of them.
We share the available under-construction properties and ask the client to book or purchase them. In return, we provide the best house you can ask for.
Should I opt for ready-to-move-in houses or those still under construction?
The answer to this solely depends on your needs. A ready-to-move-in house saves time. You just have to pay the price and voila, it is yours. In short, there is no risk of uncertainty regarding whether you will get the property or not.
However, if you are looking for a property for future investments, then under-construction ones are the best you can choose. It is comparatively less costly than ready-to-move-in properties and hence more affordable. Also, you get to know the construction material used. You also get a larger and better space at less of a cost compared to finished properties.
Now we will talk in-depth about the pros and cons of under-construction property.
Pros of Under-Construction Property
Many advantages that will compel you to go for under-construction properties include:
If you book an under-construction property, you will without a doubt have a wide variety of choices and options.
You can choose the best features for you.
You will have the advantage of choosing quality work.
Extra Perks and Space
It is possible to ask the contractor for alterations in an under-construction property. The constructor can provide all the amenities you wish for. Not only this, but you will also get spaces that more specifically suit your needs compared to those you would receive in a ready-to-move-in property, and for the same price.
Easy Payment Method
For under-construction properties, the contractors or companies typically ask you to pay in various stages.
This means you aren’t pressured to pay the full amount at once.
You can even pay in EMIs according to your ability.
Investment is one of the main criteria when choosing a property. Under-construction sites offer more of a return in the future. As they are mostly on the outskirts of the major cities, the chances of development are high. This will provide you with a handsome future return.
Cons of Under-Construction Property
We saw above that investing in an under-construction site is not a bad option. However, you should know there are some disadvantages you should also keep in mind. Some of them include:
Exceeding the Deadline
When we buy a house, we ask for the timeline.
When the timeline is not fulfilled, we feel cheated and disheartened.
This is the most common issue with under-construction sites.
Buyers face discrepancies in completion times.
Projects get delayed for a multitude of reasons.
The delay can be two, three, or even worse, five years.
Hiked Land Price
Customers deposit the payment amount in the hope that they will receive their fully constructed house after the stipulated time. However, there is the possibility that first, it gets delayed, and then second, the contractors ask for more money. In this situation, you are stuck and end up paying more because a large amount of money has been already deposited. This means you pay for others’ mistakes.
When you first get in touch with the contractor, they show you their best construction.
It has premium quality products and construction materials.
Yet this can be just a way to attract buyers. You will expect to get the same quality of work and book the under-construction site.
However, it often gets reported that the final house is way different from the sample one.
There are issues such as the use of low-quality construction material, an incomplete job, and more. Commercial contractors and companies try to maximize their profit and thus might use cheap materials.
Income Tax Reduction
You can gain income tax benefits only when you have complete ownership of the property. This means you can not enjoy any benefit for an under-construction one. Even then, you invest in them with a plan for income tax benefits, but due to delays, you might face problems. You might end up paying more than the perks are worth.
Like the others, this is also a common issue associated with under-construction sites.
Contractors make false guarantees and promises in order to win your trust.
They may assure you that the property will be equipped with a swimming pool, gym, or maintained parks.
However, when you finally get ownership, you may find none of this is true.
They were all false promises.
At the time of sale, a contractor might not provide you with a complete history of the project. There may be some issues related to the property that you are unaware of. It’s possible that you only become aware of these issues after making the initial payment and are left in shock. Sometimes this may cause a delay in the project for many years.
By now you have a decent awareness of under-construction properties. We saw their positive points as well as their drawbacks. So, whether to invest in them or not is wholly your choice.
Nevertheless, yes, an under-construction property is a decent choice to make. There are many perks such as regular checks, lower prices, alteration opportunities, and more. Furthermore, in regards to the problems typically associated with under-construction properties, many are negated if you hire a reputable real estate agency such as Erisa Projects.
We fulfill all our promises and provide all the amenities initially advertised. We are well-known for our quality work and the chances of cheap construction are zero. We work our hardest to finish every project on time. Therefore, with Erisa Projects, under-construction properties are a Yes.