Is it a Good Idea to Invest in Phase-wise possession projects?

Construction delay is one of the major issues that the Indian real estate market is facing today. It is a tough situation; not only for the pre-bookers who have to wait for unprecedented time to move to their own house but for the builders too, who run out of money as the construction runs behind the schedule.

That is a serious problem.

But the developers have come up with a solution, well, something that seems like a slightly positive aspect.
The idea is to construct the project in phases such that one portion of the building gets ready before the rest. Thus, making it possession ready. The buyers get to move to their house in due time and the builders get the finances to keep the rest of the project going. The partially completed houses or to be precise; the fully completed houses on the partially completed projects are in trend today. Since the project is divided into timelines, it becomes easier to keep the track of the progress and complete the project on time. This boosts the confidence of the builders that buyers are interested in what they are building and the buyers get their property as per the commitment.

Why is it good?

Buying a property in a phase-wise project is a good idea because there are less or no possession delays. The two primary reasons for delays are; lack of funds and delay in getting the proper permits from the authorities. The former problem can be successfully busted by giving the possession of the flats that gets ready before the whole project does.

The ready-to-move 1 BHK flats in Jaipur are preferred in spite the fact that they are more expensive than the under-construction. The primary reason being they save on the rent. It is not a wise move to pay the rent as well as the EMI for the new property. There is one more advantage. Since the rest of the building is still under construction, it becomes easy to make a few modifications according to your taste. The builder would be cooperative enough to extend a favour to you. It becomes possible to do the interiors before it is finally the time to move in.

Why is it not so good?

While many home seekers are glad to get the keys to their house at the right time, some of them are concerned that this phase-wise possession is not all the treat that it appears. Firstly, there is the security risk. The foot traffic of the construction workers puts the house at risk. Many outsiders come and go and it is not possible to keep tabs on everyone coming in and going out. The safer alternative to this phase-wise possession is tower-wise possession where a whole excluded tower is completed first and sold. Thus, entry and exit of the workers will be separate and there is less risk of security.

Then again, if a part of the building is ready, it becomes tough to get the required permits from the authorities. The project should be up and running before getting the occupancy certificate. At best, they can get the homeowners a partial completion certificate. There is a risk to live in a house for which you do not have the registration certificate. Then there is noise pollution too. The dust from the construction material can irritate the residents and deprive them of sleep at night.

Since only a portion of the building is ready, the amenities that the builder promised may be due to the next phase. So, in spite of paying for the facilities, one may not enjoy so for a considerate period of time. The dust and dirt from the adjacent tower can make the house messy and there would be a need for better maintenance.

There are pros and cons for the home buyers while the trend is fairly a good news for the builders. It depends on you whether you want to ignore the cons or get the possession of the house after a year or two of promised date. For any property in Jaipur related query, we are always here to help. You can contact us anytime freely.