You might be looking to buy a home for yourself or invest in real estate in Mumbai. In either case, it may sometimes be a good idea to look at buildings and housing projects that are under construction. For instance, the Lodha Dombivali project just outside Mumbai is a great option for investors. You may wonder what makes new projects in Mumbai a good choice. Here is a look at the factors that matter.
Perks of buying a residential property in Mumbai at the pre-completion stage.
Sometimes, houses under construction such as Lodha Dombivali draw the attention of interested buyers. What are the reasons for this?
Appreciation of price after completion of project
An apartment that is under construction often costs less than a ready-to-move-in apartment. This is assuming similarities in size, location, and builder. The earlier you buy an unfinished apartment, the more the price reduction. Once the construction is complete, the price immediately appreciates. Already, you will see your purchase turning into a good investment. You can then sell the flat at a much higher value than you bought it for.
Suppose you buy a house that you wish to live in—and not just as an investment. Here too, you could get a much better deal than on a ready-to-move-in apartment. The difference in pricing may range from 10% to 30%. Owing to this, the amount of home loan you need would decrease significantly. Your overall financial burden would drop, as would your equated monthly instalments (EMIs).
Modify your home to your preference
This is a big perk of buying an unfinished apartment if you are particular about how your dream home should look. Once a property is full constructed, you may not be able to suggest further changes. But things are different in case of an unfinished project. Here, you can actually sit with the builder, see the plans, and suggest minor changes. Unless it makes a huge difference in cost, the builder might actually implement the changes without much of an extra charge.
No fear of delay without compensation
The most common fear about buying an unfinished apartment is that the builder might not finish construction within the pre-declared time. In many cases in the past, housing construction has been stalled and the buyers have not received any compensation. But things have changed a lot and there are new regulations to avoid this scenario. Today, every builder has to register the property under the Real Estate Regulation Act (RERA). Under this, builders are obliged to complete the construction within a predetermined date. Should they fail to do so, they must compensate the buyers. If a buyer wishes so, the builder must return the price of the apartment.
Things to keep in mind
Read the property documents with care before signing them.
Running a background check on the builder is a must. Builders who have a record of completing construction in time are preferable.
Be aware of the market price of properties in the locality. Make sure you are not being tricked into paying more than the actual price.
Ask many questions about the construction as well as the plan. All promises made by the builder should be written down.
Choosing the lender is also a task of great significance. Lenders like Bajaj Finserv Homes and Loans bring you home loans of up to Rs.3.5 crore. You could also get a top-up loan of up to Rs.1.5 crore from the likes of Bajaj Housing Finance. Plus, this is a good time to invest in real estate in India. So, take your pick of the new projects in Mumbai like Lodha Dombivali. Apply for a home loan from a reputed lender. Then make your down payment on the house and wait for the price appreciation to begin.