Residential and commercial properties are mostly preferred by investors when it comes to earning huge profits in the near term. Most investors look for under-construction properties, which are accessible at lower prices. Selling them at higher rates, therefore, gives them a massive profit.
However, do not make a hasty decision when buying an under-construction property. Such properties come with hidden risks for buyers. The uninformed buyers might even lose money in the long run.
So, you have finalized and signed the agreement for an under-construction unit. The builder will ensure that the construction work will be done as per the schedule. You are assured of having the keys in hand in a year or so. But, later on, the builder takes many more years to complete the project, and you do not still live there. In that situation, you have no control over what is happening. You are now solely dependent on the mercy of the builder.
Therefore, asking the right questions to know if the property is worth the investment would be good.
Questions to ask your builder before buying an under-construction property
Do not make a hasty decision when planning to buy an under-construction property. Instead, enquire around about the project and builder. Here are the top key questions to ask:
How much is the project expected to appreciate?
If you intend to invest in a residential property in an upcoming society or project, you want to make a nice profit. Therefore, the first question to ask the builder is about the unit’s profitability. Ask the builder how much the unit’s prices will likely be appreciated in the next few years. That is a vital question, especially when your sole intention is to invest to make a huge profit.
So, find out how profitable the project will be for the investors shortly. A project in the right locality with connectivity is preferable from an investment angle. If you want to invest to make a quick, attractive profit, then enquire about the project’s prospects.
A project’s prospects of earning huge profit depend mostly on two factors. These are locality and connectivity. If the project is near famous landmarks that people frequently visit, it will be appreciated quickly in a few years only. Secondly, a well-connected project with roads, bus depots, airports, etc., is bound to earn you a high return on your investment. For example, Jashn Elevate Club Towers in Sushant Golf City, Lukcnow is adjacent to all the famous areas and attractions. This project is sure to earn higher appreciation in coming years.
How many units the project has sold?
While buying a property in an under-construction society project, find out how many units are sold. A good number of units booked will indicate the dependable quality of residential units. Such projects with a good brand reputation often have all the units sold immediately. This is because investors have faith in the quality of their work and timely completion.
If not many units are sold, that might hint at potential issues. In that case, you should investigate the matter further before signing the agreement.
Can you provide your previous project details?
Do not forget to enquire about the past project works the builder has completed. That will indicate how likely the company will hand over the property per the schedule. Getting an insight into the builder’s track record will fill you with confidence when buying an under-construction property. You can talk to the builders’ past customers, too.
These days, you can easily get the builder’s background online. Go to the builder’s website and learn more about the previous projects. Go to the testimonial section to know what clients have to say.
Will your project allow hoardings or mobile towers?
Ask the builder some crucial questions regarding hoarding and mobile towers as well. Many builders keep the right to display hoarding on rooftops of households. They lease out the space not only for hoardings but also for mobile towers. So, if you wish to own a unit on the top floor, ask if the builder will install hoardings or mobile towers.
A disadvantage of these two is that they hurt the property’s resale value. That may not give you the intended investment profit. Moreover, mobile towers in your society can also be a potential risk for your elders and children.
Also, you can negotiate the price if you do not mind buying a rooftop property with hoarding or mobile towers. The builder might lower the prices to what you are asking for since there might not be a good demand for the property.
Will you have the project’s commercial rights?
Builders lure people to buy properties in societies by showing a wide range of modern amenities. These include a gym, swimming pools, clubhouse, etc. Make queries regarding these amenities. However, one of the crucial questions is whether the builder has commercial rights to those amenities.
Many buyers later know that the builder has some rights over the amenities. The residents have only the membership in that case. Therefore, the agreement mentioned whether the builder holds the rights to amenities before signing it.
These are the key questions for a builder when buying an under-construction property. Buying a property from a trustworthy builder such as Jashn Realty is advisable. This builder has an excellent track record of quality work and timely completion of units.
Wrapping Up
Under-construction properties are less costly, but make the correct queries before signing the agreement. Ask the builder questions related to the expected value appreciation of the unit, the builder’s reputation, units sold, hoardings and mobile towers, and commercial rights on amenities. That gives an idea of how safe your investment in such a property is.
