There are multiple benefits and
risks spread across the different phases so it is advisable to take an informed
decision.
The process of buying real
estate is actually quite simple. The earlier you look a home, the lower its pricing
and the higher scope for value appreciation going forward. Those who book at
the pre-launch stage can enjoy a good appreciation on the amount paid by the
possession stage itself. On the other hand, those who hold out till
ready-possession before buying may feel they are paying a much higher price for
what is essentially the same flat their neighbor booked three years ago.
However, with new norms for
project clearances and funding being introduced at periodic intervals, the
process is no longer quite as simple as it used to be. There are situations
where the person who booked a home three years ago is still waiting and
repaying a home loan while simultaneously paying rent for temporary
accommodation.
Next door, another project may
have completed on schedule and a buyer there may have moved into his own home
from day one and will be paying only home loan EMIs.
Basic research
Given the variety of developers
offering projects in the market today, it is advisable to do initial research
about the developer online. Check out the track record of previous projects.
Read the comments made by flat buyers in various forums about the construction
quality, timely possession or delays in handing over the flats, creation of
promised facilities, etc. This will give you a basic idea of what you are
dealing with. Too many complaints would indicate that you are better off
steering clear of a certain developer.
Booking too early is a high
risk high return strategy. Booking too late is a low risk-low return strategy.
The smart thing would be to strike a balance. Enter the project at a stage when
construction has reached a certain limit. At least that ensures you will not be
stuck with a project that never progresses beyond the foundation stone stage.
Verify progress
Just because a 14 story building already has nine floors constructed does not mean that you blindly
hand over the booking amount. Speak to shop keepers and residents in the
vicinity about the pace of construction. Has it been progressing steadily since
the bhoomi poojan or does it happen in fits and bursts with long gaps in
between? The latter could imply fund raising problems that may lead to delays
going forward as well.
Amenities displayed
If the club house and other
amenities have been constructed at an early stage and you are invited to
inspect them before booking the flat, it too indicates that the developer
delivers on what has been promised.
The chance of getting your flat
around the scheduled ate are better with such projects as compared to those
where work on the amenities begins after the last building.
Your purchase checklist
1. Check
for any consumer court cases.
2. Resident
feedback of previous projects.
3. Track
record of delivery on schedule.
4. Provisions
for any delays in agreement.
5. Possession
only for furniture making.
