Pros and Cons of an under-construction villa property
Most of the villa projects in North Bangalore fall under these two categories, ready to occupy or under construction. It is not easy for a buyer to decide which to choose. If there is an urgency to occupy the new home, there are no questions. But for those who have time, decision making can be tough.
When you evaluate the ready-to-occupy Vs under-construction each of them has its own pros and cons. When you look at the under-construction property, there are several advantages as well as disadvantages.
It is the primary reason why people opt for under-construction property. The extra money that you save here will give you more options when it is time to do the woodwork or interiors. Currently, most of the ongoing villa projects in Bangalore rural areas fall under this category and have this advantage.
You can see the actual progress of the property. If you spot a minor error, you can immediately correct it. If you need to change something you can freely do so under the terms without much effort. When compared with a ready-to-occupy property, this is the biggest advantage.
You do not have to compile the entire amount for the purchase. You can pay the amount in installment as the work progresses. There is no rush and a lot easier on your pockets.
The low-cost purchase of such properties makes way for better appreciation profits. Since you will be paying a much lower price than a ready to occupy one, the profit margin would also be higher, should you decide to sell it later.
As of the 2017 act, the under-construction properties come under the RERA radar and would have to comply with the guidelines. Failing to do so would be liable to grievances which would be in advantage for the buyer. The buyer would either get it done on time. If not, they would get compensation.
One cannot ignore the risk of not getting the project completed in time. This is the biggest risk of under-construction properties. Since there are quite a few numbers of such cases, checking the builder’s credibility is highly essential if you are opting for this.
Another risk of under-construction project is that the builder may choose to change some plans in between. There are chances that the final product that you receive may not always be the one that you have initially approved or agreed to.
Under-construction properties are liable to pay the GST of 5% of the property value. This is in addition to the registration charges or the related expenses. This can prove to be expensive as the ready-to-occupy properties are exempted from this expense.
Most of the under-construction villa properties are in the rural areas which are remote locations. The lack of easy accessibility could also be a disadvantage for office goers if they are too far away.