A Guide on What To Check before Investing in an Under-Construction Property
The Real Estate industry is the second biggest market in India, contributing majorly to its GDP. It is predicted that the contribution would be about 13% by 2025.
You might have thought thoroughly to invest in properties, but the challenge comes when there are many options available in the market right from under construction projects to ready-to-move homes. Each has its advantage, saying that under construction properties can be a better investment opportunity, levying certain aspects.
Checklist for Buying Under-Construction Property
Under construction project – RERA compliant:
The process of buying under construction flat or construction property first involves checking if the property that you have planned to purchase or invest is RERA compliant. The advantage of RERA registered projects is you do not have to stress about the project construction status, that is, the deadline and the possession date. Because you can keep track of the project's progress by visiting the RERA website, apart from that, RERA compliance projects get approvals from the municipal corporation, water, and electricity departments before starting the project.
Check the legal aspects of the under-construction project:
If the under-construction project you have picked is already RERA compliant, you do not have to worry about the municipal approvals as they are default features of RERA. But if it is not, ask the builders and check for the documents and the respective authorities' permissions. You can only go in for this venture when you are clear and sure about all the approvals.
Verify the builder's background:
One of the benefits of buying under-construction property is getting to do various validations before zeroing in the property. Like, before selecting the under-construction property, you can verify the builder's background. While demonstrating, you have to do proper research about the previous and current projects by the builders/developers. You have to check for the financial declarations of the builder and carry out due diligence. Taking up these steps will help you in confidently investing in the project/property.
Visiting the project site:
Once you are checking all the paperwork – the next step is to go for frequent visits to the under-construction property. It is to understand if the construction, promised facilities, and the property's upkeep is as assured on the papers. Other than that, you can as well compare the current construction with the upcoming projects, facilities (schools, banks, markets, hospitals, etc.) in the vicinity to know if it is on par with the construction, timeline, availability, and other factors.
Checking the timelines (possession timing):
With the new rules laid by RERA, builders/developers are quoting for some extra time to complete the under-construction property. Visiting the site gives you an idea of the extension of project completion is appropriate or not, and accordingly, you can either discuss with the builder or plug out of the project.
Home loan for under-construction projects:
Financials is also a priority that you look into before advancing to property investments. If you are looking for options in home loans for under-construction property, ensure that you gather all the requisite details about the process and then go ahead with the idea. While availing home loans for under-construction property, the financial institutions verify if the property/project is a valid one. If the builder is prominent, then the process of offering loans is faster and easier.
While you are in confusion and doubt, is it good to invest in under-construction property? We ensured that these doubts are clarified through the above checklist and that you are closer to purchase and own your dream home.