Once home loans are taken out for under-construction projects, bankers directly offer them to the builder. The contractor will make payments on this loan until he hands over the house key to you after the project is finished. The customer can benefit from buying the house and reimbursing the EMI just after ownership. Financial institutions will release funds for these under-construction projects relying on the property’s advancement. Thereby, it is comparatively worth putting in these types of projects if you want to own a house but do not want to pay EMI and lease on an existing house at the same time.
If you are a real estate shareholder, there is no wonder that a building under a building under construction loan on a project that is still under construction is advantageous. These pointers will assist you in making the most of your investment:
Strike a Deal Wisely with the Builder:
Even if the builder’s price appears to be very sensitive to you, ensure you are negotiating terms. Most construction companies will cite a cost to the general public based on the bargain queries that arrive. If you strive to make solid communication with the builder, you may be able to negotiate a few thousand. If the house/apartment provided to you is on the eighth or tenth floor, you have more reason to bargain with the builder. If prospective buyers cannot easily obtain the property, the resale value will be low.
Reorganize Payment Plan to Suit Your Needs:
While the builder may present you with a pre-planned payment schedule, there is always the option of restricting. Don’t be ready to pay the builder until you see actual progress on the project. You have all right, as a prospective house owner, to consult the bank/financier and inquire about the status of building projects. If the building is not completed as agreed, you can contact the bank to stop releasing the next instalment to the builder until the project is completed as agreed.
Check to see if the builder has received a Commencement Certificate (CC)
Before signing any documents related to such under building projects. Check to see if the builder has all of the required documentation and approvals for the project to begin. To begin the process, every builder of such projects must obtain a Commencement Certificate (CC).