Things to keep in mind when buying an under-construction property and ready-to-move-in flat

Buying a home is one of the most crucial financial decisions. Several factors need careful consideration to ensure a fruitful investment, whether it is an under-construction property or a ready-to-move-in flat. 

Under-construction property: The most crucial aspect is the developer’s credibility when purchasing an under-construction property. It is best to research extensively about their track record, delivery track record, financial stability, and credentials in the market. Review the builder-buyer agreement thoroughly and ensure that it highlights the penalty clause in case of project delay. 

Insist on a construction-linked payment plan, where payments are made following the construction stage to protect against financial loss if the project stalls. Also, remember to check the Real Estate Regulatory Authority (RERA) project registration. 

Suren Goyal, Partner, RPS Group, said that before deciding on any real estate investment, especially an under-construction property, there are some things to consider to avoid any future regrets. A builder’s track record and reputation are critical aspects. This will require thorough research into the construction company’s track record, financial viability, and ability to stick to schedules. Such builders are noted for always finishing projects on time, using only quality materials, and delivering what was promised. “On the other hand, investing in a property from an unreliable builder may result in delays, legal troubles, and poor construction quality,” Goyal added. 

Most importantly, you must also conduct detailed legal due diligence if you want to buy a shell property. This includes verifying the title of the property, checking for any legal claims or disputes, ensuring all required approvals and permits exist, and confirming locality building regulations. Legal professionals can navigate these complexities to achieve a successful transaction. 

LC Mittal, Director, Motia Group, said, “To guarantee the quality of construction for the under-construction units, it is advisable to visit the site frequently to ensure that the construction meets the set standards as presented in promises. Ensure the sale agreement is clear, complete and meets all legal standards of documentation.” 

Thus, if you intend to buy an off-plan property or one yet to be constructed, ensure that you have assessed your finances adequately and have made necessary plans. It would include the purchase price and other expenses like stamp duty, registration charges, repair expenses, and property tax, 12 per cent GST. 

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Ready-to-move-in flat: Purchasing a ready-to-move-in flat has its advantages. It eliminates the uncertainty of construction delays and lets you bypass rental costs during the waiting period. However, don’t forget to check the occupancy certificate (OC), ensuring that the building complies with all the construction norms. Also, check the registry of papers. 

Investigate the quality of construction as well. Check if the plan layout matches the ready structure sample flat and that there are no structural deformities or damp spots. 

Mittal says, “Before buying a move-in ready flat, examine the property thoroughly. This includes any defects in the structure, plumbing or electrical systems, and the condition of the interior and exterior of the building.” 

What else to look for? Whether buying an under-construction property or a ready-to-move-in flat, the location and infrastructure of the project play a significant role. Proximity to schools, hospitals, shopping centres, and transportation facilities can boost the property’s resale value. Ensure the municipal authorities approve the building plans and the land title is clear. 

Gunjan Goel, Director of Goel Ganga Developments, said the value and appropriateness of a property are greatly determined by its location. Assess the building and its environs for ready-move-in apartments. For instance, a property located in a developed region with easy accessibility usually maintains its value more effectively over a long period. “To determine whether it is prudent to explore various financial options, first understand your budget. Investigate the resale and rental potential of the property. Even if you plan to remain in such a property, the unpredictability of life can never be ruled out; hence, it will be prudent to have an investment which can generate rental income or appreciate in value over time. Assess the demand for rental properties or resale in the area and evaluate the property’s yield on rent,” Goel added.