Things to Consider before Investing in Upcoming Areas
May 17, 2017 Home Trading Steps
With increasing demands of residential properties in the market, developers are now moving out of the city to start the new projects. Projects in upcoming areas have attractive prices, while the key points like habitability, neighbourhood, and connectivity must be kept in mind while buying a property in these locations. New areas have their own development types, pricing, and buyer-investor category. The major advantage of buying properties in these areas is the affordable prices. Developers often have inaugural discounts and the buyers can strike a good deal by bargaining.
One thing to keep in is that the projects in upcoming areas have almost zero price appreciation for first few years. They are likely to lack in basic amenities like proper roads, connectivity, electricity etc. The project could be delayed indefinitely due to some legal issues, which can cause a huge financial burden to the buyer.
It is a risk to invest in upcoming projects in new areas. Buyers should do a proper research on the background of the developer and check if they have pulled a project like this before and when was it delivered. Buyers should also check if their past projects were delayed and if, what the reasons for the delay were.
In an upcoming area, multiple constructions are carried out by different developers, making it inhabitable for certain years. Even though the apartments would e ready to move into, the constant movement of trucks and vehicles and constant construction noise, can make it inhabitable. Dust in air from construction and the poor quality of roads contribute to the inhabitability.
What can a buyer do?
Even though there is so many risks involved, the attractive and affordable prices make them a good investment. If the buyer is looking to invest their money, these are the good options. Though there won’t be much price appreciation for few years, so the buyer needs to be patient with the investment and its return.
If the buyer is looking for residential purpose, make sure to do a thorough research. Check the neighbourhood, proximity to daily needs and commute time. Make sure it matches your needs and requirements. Also, make sure that the project you are investing in is by a reputed developer who has done a similar project in past. Make sure there are schools and hospital nearby.
It is better to weigh your options carefully before investing in upcoming projects in new areas.
One thing to keep in is that the projects in upcoming areas have almost zero price appreciation for first few years. They are likely to lack in basic amenities like proper roads, connectivity, electricity etc. The project could be delayed indefinitely due to some legal issues, which can cause a huge financial burden to the buyer.
It is a risk to invest in upcoming projects in new areas. Buyers should do a proper research on the background of the developer and check if they have pulled a project like this before and when was it delivered. Buyers should also check if their past projects were delayed and if, what the reasons for the delay were.
In an upcoming area, multiple constructions are carried out by different developers, making it inhabitable for certain years. Even though the apartments would e ready to move into, the constant movement of trucks and vehicles and constant construction noise, can make it inhabitable. Dust in air from construction and the poor quality of roads contribute to the inhabitability.
What can a buyer do?
Even though there is so many risks involved, the attractive and affordable prices make them a good investment. If the buyer is looking to invest their money, these are the good options. Though there won’t be much price appreciation for few years, so the buyer needs to be patient with the investment and its return.
If the buyer is looking for residential purpose, make sure to do a thorough research. Check the neighbourhood, proximity to daily needs and commute time. Make sure it matches your needs and requirements. Also, make sure that the project you are investing in is by a reputed developer who has done a similar project in past. Make sure there are schools and hospital nearby.
It is better to weigh your options carefully before investing in upcoming projects in new areas.
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