Decoding the Perks, Is Investing in Under-Construction Flats Beneficial?
The real estate landscape often presents a choice: ready-to-move-in or under-construction flats. While the former offers immediate occupancy, the latter holds a unique allure for savvy investors. In this exploration, we unravel the benefits of investing in under-construction flats and why this path could be the key to unlocking long-term gains.
1. Appreciation Potential
Under-construction flats often come at a lower price point compared to ready-to-move-in properties. As the project progresses and nears completion, the market value of the property tends to appreciate. Investing early in the construction phase can be a strategic move, potentially yielding substantial returns when the project is completed.
2. Flexible Payment Plans
Developers typically offer flexible payment plans for under-construction properties. This could involve staggered payments linked to construction milestones, making it easier for investors to manage their finances. This flexibility aligns with various budgetary considerations and financial planning goals.
3. Customization Opportunities
Being part of a project from its inception opens the door to customization. Investors can often have a say in certain aspects of the property, such as choosing finishes or layout modifications. This personal touch not only adds value but also creates a home that aligns more closely with individual preferences.
4. Potential Tax Benefits
Investing in under-construction properties may offer tax benefits. Buyers may be eligible for deductions on both the principal and interest components of the home loan under sections 80C and 24(b) of the Income Tax Act, respectively. These financial advantages contribute to the overall cost-effectiveness of the investment.
5. Secure Entry Prices
Investing in under-construction flats allows buyers to secure properties at current market rates. As the real estate market trends upward, securing a property at an early stage shields investors from potential price hikes. This ensures a competitive entry price, contributing to better overall investment performance.
6. Investment Horizon Advantage
For investors with a longer time horizon, under-construction properties can be an ideal choice. As the property appreciates over time, the investor benefits from capital appreciation. This aligns well with those looking for a patient and strategic approach to real estate investment.
7.Investment in Future Developments
Under-construction flats often form part of larger residential or commercial developments. Investing in such projects positions buyers to benefit from the overall growth and infrastructural enhancements in the surrounding area. This broader investment outlook can contribute to the property’s appreciation.
While investing in under-construction flats requires a bit of patience, the potential benefits make it a compelling option for those looking to build a robust real estate portfolio. From financial advantages to customization opportunities, the journey of investing in a property under construction can lead to a home that not only meets your needs but also becomes a sound investment for the future