Successful Investing is about managing risk, not avoiding it. – Benjamin Graham
Buyers always look at the comparison between a ready to move property and an under construction property. Each property has its own pros and cons, a learned decision in such situations is what helps make a ‘Smart’ investment.
Here are a few pros of investing in an under construction property:
1. Lower Initial Cost & Discounts
The biggest advantage of an under construction property over a ready to move in is the difference in the price and the payment schemes. An under construction property allows the buyer to negotiate the rates while also providing a certain ease in payment schedules.
2. Payment Flexibility
While investing/buying an under construction property the payment is rarely ever paid in full, each builder/developer offers a part payment program. Usually 10-30% is paid as down payment and the rest is paid as per the construction process.
3. New Construction
Another major plus while investing in an under construction property is that there are no repairs to be looked at or paid for while in a ready to move property that poses as an added expense to the buyer.
4. Good Appreciation on Investment
Since an under construction property is usually purchased at a lesser rate than a ready to move property, the returns on this property tend to be higher than others.
5. Customization & Location
An under construction property allows the buyer to choose not only an easy payment option but also a floor and facing of their choice. Since the property is undergoing construction, customizations are easily made without adding to the cost.