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Completed Houses Are More Valuable Than Those Under Construction
The costliest thing that a man ever buys in his life is a dream house for him where he can live happily with his family. This being the costliest investment that a common man would ever do in his life, it is very important that he makes a wise choice on what kind of property he wants to invest in. Because whether you see yourself as an investor or not, make no mistake that your home will be an investment. The first selection decision any buyer will have to make is usually the choice between completed resale properties and those under construction.
While there are pros and cons for both the types of properties, yet it is generally perceived that completed properties are more valuable that under construction houses because of certain points which are being discussed here. We can observe this in real life as banks often have better mortgage rates for a ready-made home compared to one that is yet to physically exist. It is because of a lower risk that enables a lender to offer better terms.
You see, you pay, you possess
With completed homes, there is no waiting time before you could take possession of the property and move in yourself or rent out to tenants. Unlike houses that are work-in-progress where you have to wait for many months or even years before you could actually enter your dream house. All the investor or home buyer have to do is to pay the seller, get the legal documentation done and pack his bags and baggage to enter the house. That is as straight forward as it gets without having to suffer miserable headaches waiting in anticipation for construction to complete.
Many a times it so happens with under construction properties that due to financial crunch or legal issues, the construction work is halted and the investors have to wait helplessly for the construction to be over. Builders can go bust as we read so often in the newspapers. Even the sudden rise in raw material prices can cause building works to come to a standstill until developers and contractors can agree on a new financial arrangement. This issue is not there in completed properties. Building projects do not complete more often than we think. It’s just that there are lesser publicity given to these disasters.
Even the most high profile development projects with the most credible builders can run into problems and bottlenecks that can delay a project. You can read about these in the newspapers every once in a while.
What you see is what you will get
In houses that are yet to be constructed, the real estate agent may promise you a lot of things but when you actually get the possession, you will find that quite a few promised features are missing. There is hardly anything that you would be able to do then. Hence, it is a better and smart choice to go for ready to move completed houses where you get to see to you will own and there is no scope of any ambiguity here.
You see, when you are being sold something that is yet to exist, a salesperson can sell you a fantasy without being untruthful as nobody can rightfully challenge them since there is no real evidence to prove otherwise. This is why brochures created to sell real estate look beautiful with great greenery and dirty rivers filled with dirt can be made to look refreshingly tranquil in the middle of an industrial city.
It is only when the buildings are erected and your apartments are ready will you be able to have a real genuine evaluation using your five senses. Only then will you be able to know whether a house is right for you and whether features contained in a sales brochure turned out as what you thought they would be.
You get to know your neighbors well
Another reason why completed properties are more valuable than the under construction ones is that with the former type, you will get to see your neighbours who have already moved in and are staying in the locality or the community. It is good to know about your neighbors beforehand as if you are not lucky in a getting a good neighbor that will be a bad thing for the rest of the life.
For example, if you have a neighbor who loves to intrude into your space with potted plants along a common corridor, you will be able to observe that for a ready-made home. And if you are someone who finds that a total turn-off, you can walk away without a care in the world Whereas, you will have no control over who your neighbours are when the building has yet to be built. Eventually finding out that you have annoying neighbours after you move into a newly built home is too late to walk away. You will have to live with it until you move out.
The thing is. When you are buying a house at a sales launch, there is no way for you to have any control on who your neighbours are. Imagine your image of your dream home being shattered because you ended with nosy, noisy or territorial neighbours. While we focus on the features of a new building project, we often forget about these little aspects that can realize or write-off a seemingly dream home.
No risk factor
There is always a risk factor attached when you are investing on under construction real estate. What if the real estate agent turns out to be fraud and he does not complete the work? What if the work gets interrupted due to some land dispute or any other legal reason? What if the neighbors who will live with you for the rest of your life do not turn out to be friendly enough?
These risk factors are always there for new launch condominium and apartments which is why it is always believed that a completed house is much more valuable and safe and that is exactly where you should spend the savings of your life when you want to get into a house of your own.