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An under-construction flat in Chennai, has its own share of benefits and disadvantages. However, with the growing demand people have started prioritizing the purchase of under-construction flats. The under-construction flats for sale in Chennai offers the convenience of modern living with an expanse of personalization, allowing you to design your area to suit your tastes. Some of the key advantages and disadvantages of purchasing under-construction flats in Chennai is listed.
Pros of Buying Under-Construction Flats in Chennai
1. Higher Property Value Appreciation
Investing in under-construction flats in Chennai offers several advantages, chief among them being the property’s strong potential for appreciation and return on investment. It is common knowledge that purchasers of completed flats tend to invest much more than those in pre-construction units.
When a buyer invests in and registers a property that is still under development, the neighborhood’s value rises along with the property itself. The property will have increased in value and will provide a higher return on investment in a few years. The appreciation value for the money invested is one of the main benefits of purchasing pre-construction flats in Chennai.
2. Cost-Effective with Better Pricing
An under-construction property might save a lot of money in comparison to a ready-to-move-in residence. For properties that are still under construction, the price per square foot is usually 3 to 5% less. In order to increase sales, builders frequently give discounts while projects are under construction, and purchasers can frequently bargain for further price cuts. Locking in at a reduced price guards against future hikes in the market. In addition, the lower purchase price translates into cheaper registration and stamp duty costs.
3. Flexible and Easy Payment Options
The full amount needs to be paid up front when purchasing a finished property. Paying registration fees and other additional expenses is also required. On the other hand, you just have to pay 10% or 15% of the booking amount when purchasing under-construction projects. If the property is funded, you either follow the building timeline or pay the banks IMEs. A flat in Chennai that is currently under construction can be purchased without requiring a substantial down payment and with flexibility in the payment plan.
4. Benefit of RERA Compliance
Real estate developers are required to register their projects with RERA, which entails providing complete disclosure of every property they have developed on the organization’s official website. The carpet area is the only thing that has to be paid for. Super-built-up places like lobbies, balconies, stairs, and lifts are not covered by it.
The new RERA rules must be followed by all retail developers. This rule states that the developer shall be liable for the whole sum due, plus interest, if the project is not completed by the date specified in the possession agreement. This will provide consumers with a sense of security when purchasing residences that are still under development. Dispensary regulations and rules are provided by the RERA regulating center located in each city.
5. Allows Customization and Personalisation
Buying an flat in Chennai that is under-construction offers several benefits, one of which is the ability to customize and make changes. A number of intricate features and entities exist, including the type of window, attic positioning, wall and tile colors, kitchen furnishings, and much more than what the buyers would expressly want.
While the home is still being built, it is more easier for the purchasers to request a specification and alteration. This makes it simple for clients to get the apartment of their choosing. These are the primary benefits of buying Chennai pre-construction flats.
6. Brand New with Latest Amenities
Technology is continuously changing the world in which we live. Modern trends and facilities also appear in the housing industry as new technology do. You receive up-to-date features and facilities when you choose a ready-to-move-in property.
But what awaits you if you select an apartment that is still under development are cutting-edge technologies. Even while energy-efficient architecture, sophisticated security measures, and smart home technologies are already in use, they are constantly developing. Ideally, you can anticipate advanced technologies that will improve your life’s overall quality if you select a home that is now under construction.
7. Added Tax Benefits
As per, Section 24B of the Income Tax Act of 1961 permits greater interest deductions of up to Rs 2 lakhs, while Section 80C permits tax deductions on principal repayments of up to Rs 1.5 lakhs. Under-construction properties are a desirable option because of the long-term savings, even with the lengthier waiting period for possession.
8. Early-Bird Offers and Discounts
The real estate developer typically makes offers along with under-construction buildings. On the other hand, ready to move in flats in Chennai for sale rarely offers discounts. You may even make some changes to your apartment while building is going on using the blueprints and plans of a home that is still under development.
The period just after excavation and foundation work is usually the best time to buy an under-construction property. During this stage, costs are at their lowest. By reserving a flat for sale in Chennai early with the builder, buyers may guarantee it at the current price.
Cons of Buying Under-Construction Flats in Chennai
1. Delay in Possession
The possibility of delayed possession is one of the biggest disadvantages of
purchasing real estate that is still under development. The project may be delayed by a number of problems that developers may encounter when building, including a lack of money or a delay in obtaining governmental clearances. For purchasers who may be paying rent or a mortgage while they wait, or who may have intended to move into the house by a certain date, this can be frustrating.
2. Uncertainty of Quality
Purchasing homes that are still under development also has the drawback of raising doubts about the final product’s quality. Even while developers might have a strategy and design in place, there’s no assurance that what’s ultimately delivered will live up to the original expectations. During the building process, it’s possible that the property’s layout or design will alter, however this is unpredictable.
3. Additional Costs
There might be additional expenses, such maintenance fees or parking spot fees, when you purchase an under-construction property. In addition, while you wait for possession, you could have to make extra rent or mortgage payments if the building process is delayed.
Frequently Asked Questions
1. Do under-construction flats have GST exemption?
No, under-construction flats does not have GST exemption. However, on the other hand, ready-to-move flats are exempted from GST charges.
2. Which is better ready-to-move or under-construction flats in Chennai?
If you prefer higher return on investment then under-construction flats in Chennai would be an ideal choice. Under-construction flats also allows the luxury of customization to build your dream home.
3. What are the best localities to buy under-construction flats in Chennai?
Buying under-construction flats in Chennai requires careful consideration and thorough examination. Some of the best places that offers flats for sale in Chennai are Tambaram, Medavakkam, Pallavaram, Sholinganallur, and Madipakkam.