When a customer or homebuyer decides to buy a property, the biggest worry they have when purchasing an under-construction property is whether they will receive the delivery. Additionally, if they do get the delivery, they worry whether it will be on time as promised by the developer. On the other hand, for a ready-to-move-in property, they can physically inspect the property to see what is available, as it is already constructed. This allows them to assess its suitability before making a decision.
Every option has its advantages and disadvantages. With a ready-to-move-in property, the choices become very limited because most available units are resale properties that have already been purchased by someone else. As a result, buyers may not always find their preferred apartment, direction, size, or layout.
When buying an under-construction property, the advantage is the ability to choose from a large inventory—sometimes 100 or 200 apartments. Buyers can handpick the floor, unit number, layout, and direction according to their preferences. However, the risk is that the property is still under construction. Fortunately, with the introduction of the RERA Authority, new compliance laws, and developers focusing on building goodwill by delivering projects on time and as promised, the risk has significantly reduced. If one chooses the right developer and the right project, there is little reason to worry about being misled.
Most importantly, buyers must stay away from Ponzi schemes such as assured buyback, returns, and subvention plans. These schemes often involve high-risk excessive cash flow with the developer, leading to project delays and non-delivery. By selecting the right projects and seeking proper guidance from trustworthy sources, under-construction properties can be a great choice. They also offer the advantage of flexible payment plans, as payments are spread over a period of three to four years during the construction phase, making homeownership more accessible within an extended budget.
