Things To Keep In Mind While Buying An Under-Construction Property
17 Dec 2016
Home buying is no walk in the park. Especially if it's an under-construction property, as most buyers invest their life's savings in purchasing the dream home they always yearned for without actually seeing the finished product.
Though the government is bringing in RERA, which will infuse transparency into the entire process, a home buyer must also indulge in due diligence to ensure a hassle-free buy.
Here's what you must keep in mind while buying an under-construction property:
Check the builder's track record
This is the first and probably most important step. Analyse how many years of experience the developer has, what projects the group has built, whether delivery has been on time, etc. Also, if the developer has previous projects to showcase, try and visit them to check the quality of construction.
Ensure all documents are in place
Even if a property comes with the most tempting offer, don't make your decision without ensuring all the required documents, approvals, and permissions are in place. Check if the land has environmental clearance and is a non-agricultural one in order to avoid legal hassles.
Does it have approval from banks?
If a developer's record isn't up to the mark, then banks tend to be wary of lending him money. If a project doesn't have approval from banks, then there is a good chance that the project might get stalled or delayed. Not just that, even procuring a home loan might become an arduous task for you.
Visit the site and experience it yourself
You can go through the brochure a 100 times but nothing's more assuring than a site visit. This will also help in ascertaining if the infrastructure is in place. You can see if there are well-connected roads leading to the project, check the environment, and the social infrastructure in and around it. You can even speak to residents of the neighbourhood to check for any water and/or electricity issues.
Make sure there aren't hidden costs
It is imperative that you verify the final cost, with all the taxes, and ensure that there are no hidden or additional costs. You don't want a shock during the time of possession.