Tips For Buyers To Ensure They Aren't Investing In A Project Fated To Get Delayed
Between investing in a resale home and an under-construction home, the former always loses by an inch. To begin with, they are much pricier. Since they are in comparatively developed locations, their configurations may be smaller while you may need a large home. Also, most people prefer to enter a house where they would be the first occupant. For these reasons and more, India still continues to favour under-construction projects, if data is to be believed.
PropTiger.com data shows that 74 per cent homes sold in Q2FY20 in the National Capital Region (NCR), a property market, where the largest number of project delays are reported, were under-construction properties. In the Mumbai Metropolitan Region (MMR) market, nearly 83 per cent of units sold here during the same period were under-construction homes.
So, if you want to buy an under construction home, it is advisable to tread carefully and lower project delay risks as you pick a still-on-paper plan for your dream home. Here are some tips to follow to ensure you are not investing in a project that’s bound to get delayed.
Pick a brand: Companies spend a fortune on marketing and advertisement, which needn't necessarily be the testimony of their actual deliverables. Only trust a builder who has a great track record and high success rate, even if that means paying more. Postponing your purchase plan for a couple of years to arrange more money is a better idea than investing in an affordable project with an unknown developer.
Go for a small project: The chances of smaller projects getting caught in liquidity troubles or regulatory complexities are much lower than a large project. Naturally, a large project would need a greater amount of money, and the builder might realise midway that he is unable to cope with the increasing costs — as has been the case with several large housing projects in the NCR. A large project would invariably also take much longer to get completed, apart from requiring a multitude of regulatory approvals. In short, a small project would be a wiser choice to avoid delays. However, do ensure that the project is large enough to fall under the purview of the real estate regulatory authority (RERA).
Do background research: In the recent times, several housing projects were nixed by authorities because of its location – something that was initially sold to the investors as a unique selling point in the builder’s marketing pitch.
A project’s close proximity with an existing water reservoir or a bird sanctuary might, for instance, may seem like a location advantage but such a project also runs the risk of getting scrapped owing to risks it poses to the natural bodies or because of the future project expansions. Similarly, a project lying at a walking distance from an upcoming airport might also be taken down at a later stage or see location movement because of future expansion plans of the former.
To put it simply, do a thorough research about the area where the project is coming up including its history and future.