When you think of buying a new house, you are often given two options: under-construction flats and ready-to-move-in flats.
Let’s assume that you are considering investing in under-construction flats. But again, you aren’t sure if it’s the right choice. Well, when it comes to investments, what works for one person might not work for another. However, it required careful consideration.
Don’t worry. We have researched and added the pros and cons of buying under-construction flats that will help you make an informed decision.
Perks of Investing in Under-Construction Flats
Investing in under-construction flats can be a strategic move as it offers the following advantages:
Get Flexible Payment Options
Making full payments may not be easy on the pocket for many. However, some under-construction site builders offer flexible payment options. This way, you don’t have to pay a huge chunk of cash upfront and this makes it easier for you to manage your money while still getting your dream place.
It’s a Pocket-Friendly Option
Under-construction flats are priced lower than ready-to-move-in properties. You can save up to 30% if you are investing in under-construction flats. Even if you face delays in moving into or renting out your new home, the price difference can easily outweigh these challenges in the long run.
Income Opportunities
Investing in under-construction properties offers the potential for rental income. Once the property reaches completion, you can lease it out to tenants, establishing a reliable stream of revenue. However, it’s crucial to collaborate with a reputable developer and conduct thorough research to ensure that the property aligns with your requirements and preferences.
Potential Drawbacks of Buying Under-Construction Flats
Like every coin has two sides, investing in under-construction flats too has some disadvantages.
Uncertainty in Quality
Many times, builders mess up with construction quality and you can’t fully assess the property’s quality until the construction is complete.
Market Fluctuations
There’s no 100% guarantee that the value of your under-construction flat will increase as expected. Because the real estate market is often subjected to fluctuations.
No Income Tax Benefits Until Possession
If you are buying under-construction flats using home loans, there’s a problem. You can’t get any tax benefits on the interest paid on your home loans unless you get possession of the property.
In conclusion, investing in under-construction flats has good rewards. But at the same time, you must also consider the risks and uncertainties involved. It’s best to do your research or get in touch with professionals to understand market trends. Happy home buying!