Is It Safe To Invest In An Under-Construction Property?Saturday, 2 September 2017
Running a middle-class livelihood is not just a point & the job holder in the family have short & long term goal instantly after getting into a job. Considering short term, it is about getting compact essentials to proceed every day basic needs, while long term goal may be the dream for an own property.
Expert says that selling an under-construction property is a good deal for developers but, if you have an idea to invest on it, you must think how secure it is to invest in it. The important question to be raised by the person who is going to plan to invest in an under construction property should be like “Is it safe to invest in an Under-construction property?”Just spend few minutes to reap some guidelines before investing in it.
Interpretation of the pre-launch rate & present rate
This is considered to be one of the important things to consider before investing in an under-construction property; both the pre-launch & present rate depends on the market trends & the neighborhood. According to that, the Pre-launch rate will fluctuate over time, which fixes the rate depends on the market trends whereas the present rate is the fixing that depends on supply & demand.
Know the resale rate
Having a clear idea of the secondary market price of the property is advisable. Before investing in an under-construction property check whether it has the future hope in price elevation. If you are not aware of the resale price of the future then there are high chances for various troubles, so make sure to move with the experienced persons in such cases.
The allotment letter
The developer consigns you an allotment letter instantly after the booking of a flat at the pre-launch stage which seems like “agreement to sell”. This is the legal proof that buyer should procure at the beginning itself. This is not a registered document so, buyers should be careful about it. This seems to be a simple affair that mentions the developer, buyer of the property & some information about the purchased flat.
The date of booking, amenities & the location of the flat is all included in the allotment letter, as this agreement is mandatory for the buyer in the case of the developer deviation.
Contact existing owners to get better rates
Before getting into the booking, you have to analyze the existing rate of the similar projects from the owners or others who paid for comparable properties. Clarifying is the best option for you to succeed in the row; you just cannot get tempted by the attractive prices at a small premium by the developers. When it comes to under construction property, it’s good to find the best rates at pre & present time.
Take ‘Title Certificate’ from the property lawyer to avoid disputes such as unnecessary arguments among landowners & developers, government approval & so on. When purchasing an under construction property, It is advisable to get the title certificate before investing in it.
Pre-EMI is a mandatory thing, when you are planning to opt an under construction property because of the lower interest compared with actual EMI. Pre-EMI interest is helpful to the buyers for acquiring the property, but you can’t find it always attractive as it appears. Pre-EMI interest raises the cost of the property rapidly, that seems as a negative aspect. This plan will be a burden when an unexpected delay occurs.