When thought of writing a blog I preferred this topic because I could derive my personal experience for this. For this particular topic, I think it is better to share my experience rather than the ones I heard. A few years later, in 2015 I booked an under construction 3 BHK apartment in Thrissur. We booked it on 23rd February 2015. I remember this date because it was partly attributed to my marriage on September 27th of 2018. I grand the plans and I expected to get the possession and move-in within 37 months as was promised by the renowned developer.
Is it worth buying an under construction property?
As a token of money, I was happy to invest a sum of about 5 lakhs (10% of total cost) as a token of money to buy the flat. I always suggest keeping in mind the name and size of the builder while booking an apartment because this will give you a bit of confidence on the promises made.
As far as India is concerned it is difficult to expect the builders/developers to fulfil the promises made to the end buyer. As per the rule of Builder buyer Agreement (BBA) for premium villas in Thrissur, the builder must pay Rs. 5 per sq.ft. as penalty per month if the apartments are not completed and possession not given within 37 months.
Why do I believe in buying an under construction villas in Kerala?
To own a home is an exciting and tedious thing to do. I was well conscious of every detail that goes into buying your own place such as designs, number of rooms, their size, about the neighbourhood etc.
I opt to buy an ongoing project because it has a good option for many reasons. It is said advantage because I was free to design and customize my villa in the way I want it to be. It is also cheaper than buying a premade apartment. I had saved a lot of money just by buying off-plan.
Another merit I received is that I was free from the worries of repairs for the next decade because I myself designed and witnessed how it was built.
Some points to remember
- Whom you choose for building process must possesses a good background in this industry. If complaints are arising high then they won’t be good builders.
- There are lots of ways to buy a home. And every method possess both advantage and disadvantage. So be sure to see that make sure your choice is worth it before you buy.
- Sometimes even a single repair can ruin a day. So think about the deficiencies that can affect your daily life and make your builder know about that.
- When compared to the pre-made houses taxes are lower in buying a pre-sale house.
- All unimportant miscellaneous fees that you may need to pay if you buy a pre-made can be eliminated if you buy under-construction homes in Thrissur.
- Thoroughly examine all paper works before signing up a project. Also feel free to ask questions about the terms and conditions before agreeing on a contract.
The selection of pre-made and ongoing villas in Thrissur is about one’s personal opinion. It clearly depends upon the financial background of the customer.
Advantages of buying an under construction property
It allows making payment with ease
The major reason why I choose under-construction property is that there is no emergency to pay the money as a whole. Within a gap of 37 months, I feel relaxed in making the payment. This takes away a large burden from my shoulders. Usually, I have seen many builders asking to deposit the whole amount at the time of possession. Here before finishing the project, I started paying down the EMI of 10% of the whole amount but it was within my reach.
Provides wider and better option
In my opinion, under-construction villas in Thrissur provide wider choices and more options to select from. It is said so because every other day builders launch a new project at different locations. This allowed me to choose allocation and even the floor as per my wish and convenience.
Price is the major feature and advantage of buying an under construction property. The chances of the price of appreciation with under-construction projects are higher as most of these properties are developed at the outskirts and underdeveloped areas.
More constructed area and better facilities
In terms of the construction area and facilities, the builders offer you a great deal. When I planned with a 3 BHK villa in Thrissur town with my builder, Haritha Homes offers various house and other facilities related to re-creation and all within the society campus. The covered area of my house was more than the covered area of ready-to-move in completed projects in Tcr of my friend’s villa and both were made within the same budget.
I think buying an under construction property symbolize a win-win situation for both the buyer and the seller. The buyer gets his hands on a profitable deal and the seller, on the other hand, is exempt the costs required for the further construction of the property. One of the major compelling reason that draws a large number of home seekers to invest in under construction property is the guarantee of high returns. Am very sure none of the deal involving ready to move property can offer you a good deal.
Sale/USD Agreement sale
UDS is the most common practice to register a property.Trichur builders sign two agreements for an under construction property with the buyer i.e. sale agreement and the other is construction agreement. Sala agreement is based on the cost of land and the construction agreement is based on the construction cost of flat and property.
Under construction property
I think this type of registry is performed only to avail home loan and is very risky. A buyer fences the risk of a builder and the bank.
Sale agreement and work order
This type of registration is very common in Hyderabad. Here also the sale agreement and the work order are the two agreements shared by the builder. To execute the plan of kitchen slab, Windowpane, cost of tiles, doors, flooring, POP etc.
Sale Agreement Value + Construction Agreement value
Villa builders in Thrissur prefer to register the under construction property at full value. It is a hassle-free type of property registry for a buyer because here a sale deed is executed equivalent to a total of sale agreement and construction agreement value.
Transfer Cases / Assignment Deed
A buyer always confuses with transfer cases or assignment deed. If the plot is brought from a secondary market then there will be a third party between the builder, buyer, and the seller.
If the property is registered at assignment deed value then it is problematic for Thrissur builders. As per the sale and construction agreement signed with the first owner, the builder will only receive original consideration value. Personally, I couldn’t understand the logic behind registering a property at a value somewhere in between the total consideration value of first owner and the sale agreement value.