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Caution: Do not buy under construction property without a certified realtor

The attractive price of a under construction property might attract you as a buyer. There are certain pitfalls hidden behind these lucrative deals . You need help of a certified real estate agent, who can guide easily through the transaction and  ensure deal proves to be profitable one.

In a recent circular, the National Green Tribunal (NGT) asked developers to stop construction in some parts of the Noida Extension and Gurgaon regions of the National Capital Region (NCR). This was done to control air pollution caused by building activity in the area. No doubt the order will affect the completion of under-construction projects in those areas. In case you had a certified broker, he  would have warned you about any such situations beforehand , as they do deep research about the project , before selling it to a client.  

According to a realty research and analysis firm, among projects that offered possession between 2011 and 2014 in NCR, 78% are running behind schedule. The average delay is of 30 months. In Mumbai Metropolitan Region (MMR), average delay is 20 months. Certified brokers are experienced enough to predict the delay of a particular project. This is helpful for the buyers, since they are mentally prepared.

The real estate agents also help to manage your loans. Home loans can be exceptionally burdensome if the house is not being delivered. According to the income tax rules, you can claim deduction for both principal repayment (Rs.1.5 lakh a year) and interest payment (Rs.2 lakh a year) on a home loan. But you can’t avail this benefit till you get possession of the property. So, if a project is delayed, you will continue paying the EMI without getting any tax benefit on it. So , it’s always better to hire a realtor , when you go for home loan.