Following the implementation of the RERA, more people are looking at investing in property. Let us examine why this is one of the best periods to buy an under-construction property
Everyone wants to own a home once in a lifetime. However, choosing an under-construction property to meet your desires is a difficult decision to make. When you buy a home, you should be mindful of every detail like the design, neighbourhood, rooms, etc.
Impact of RERA on under-construction flats
Under-construction properties tend to be cheaper than those in completed projects. Generally, an under-construction property is around 20 to 40 per cent cheaper than a ready-to-use apartment. This, in turn, also means lower EMIs on home loans. The implementation of the Real Estate (Regulation and Development) Act (RERA), has made it easier for property seekers to buy under-construction houses, with the regulators ensuring that projects are delivered on time to the home buyers. It also ensures that the houses are delivered, as per the actual size and the facilities promised by the developers.
When a project is launched, there will be a number of permissions required, for water connection, approval of building plan, clearances from the fire safety department and permissions from local authorities, to build the project. In an under-construction property, the permissions are obtained by the developer and home buyers are not hassled for the same. This will liberate the buyer from paying repeated visits to administrative offices, to complete the paper work.
Under-construction versus ready flat: Key differences
In an under-construction property, the developer cannot make changes without prior approval from the buyers, as it may change the cost of the property. In an under-construction property, although the buyer cannot make any structural changes, minor changes pertaining to interior layout, electrical and plumbing can be made. Moreover, such projects give you the freedom to choose the type of flat, the view and the floor, as per your requirements. When investing in an under-construction property, the buyer receives a new, unused house. On the other hand, if the buyer purchases a ready flat, a lot of time, money and effort may need to be invested, to restore the flat to suit one’s needs.
The home buyer can also earn a substantial profit, if he plans to sell the property after its completion.
For a home buyer, the ultimate decision of whether to invest in an under construction property, should depend on the financial status, choice of location, developer’s background and desired amenities.