Tips for Investing into Under Construction Property
Buying a dream house is the most important decision in almost everybody’s life. But at this point have you done a good homework about the properties? You often forget to emphasis on some key property related issues that may put you in trouble in future. It is always advisable to concentrate on all the substances which directly or indirectly are linked with property buying which are under construction or ready possession.
Whether you are investing in ready possession homes or under construction properties, you have to be aware of traps which are on your ways. A property under construction would definitely be cheaper than one available for purchase or ready to move houses. But there are many circumstances and facts in the under construction property, which have to be analyze to stop you falling into trap.
When you plan to buy a flat that is under construction property, you have to check some issues before making the deal final:
- Check out the past history of the builder. If the builder has done a good job in the past, chances are very high that the builder will do the same again. If the builder’s image is not good in the market, on should avoid going for that.
- It is very important to analyze whether the builder is trustworthy. Verify the past record of the builders for transparent dealings. Check if he was involved in any fraudulent act.
- In under-construction project, the developer’s bona fides and market standing should be carefully researched and verified. Analyze approved sanction plan, commencement certificate presented by the municipal corporation and also the IOD.
- Ask for a copy of the project’s drawings, duly stamped by the municipal authorities. Check out whether the builder has the actual ownership of the land where the project is constructed.
- Clarify loan tenure and how the money will be paid to the builder. Mostly some part of the total cost is paid in the starting and the rest amount is only paid after the completion of the project. Ask for the linked payment plans, which are usually structured on a project-to-project basis.
- You need to be more careful, in case of projects that are half completed. If your home is on 20th floor and the project is constructed only 10 floors till now then you have to ask for the commencement certificate of your floor.
- Generally the Builders or developers do not disclose their information to the prospective buyers and sometimes even you may not be aware of some legal terms hence you can always hire a lawyer or real estate consultant to accompany you in this mission.
Category : Flatons Advisors Blog