16 Advantages of pre-build homes over residential plots!
Choosing between buying a brand-new house or investing in a residential plot is like standing at life’s crossroads. It’s the kind of choice that shapes your daily living, financial health, and the heritage you’re crafting for future generations.
Unlock the benefits of booking under-construction homes over residential plots!
When it comes to owning a residential property, there are two options, first is buying a pre-built or under-construction home and the second is purchasing a residential plot and building a house on it. While both options have their advantages, buying a pre-built house offers several benefits that make it a more desirable choice for many buyers. Let us check all the advantages of a pre-build home:
A functional living space: A built-up home is immediately functional as a living space, so you can either move in right away or rent it out to tenants, thus generating income from day one. These days various renting options for residential properties in the real estate market.
Minimize home loan process: The advantages of pre-built homes also include benefits related to the loan process. One major benefit is that you can avoid a double loan process. Normally, you need to apply for a loan for the land and a second one for construction. However, with a pre-built home, you only need to apply for a single home loan.
Steady Rental Income: Rental properties provide a steady stream of income, which can be especially valuable for investors looking for consistent cash flow. This can help pay down the mortgage or be reinvested.
Emotional Satisfaction: Owning a residential property in the form of a house can provide emotional benefits, such as the sense of stability and security that comes with having your own build-up home.
Pride Point for homeowner: Homeownership can provide a sense of pride and accomplishment as it is a significant investment requiring careful planning and financial management, especially with a constructed bungalow or villa.
Under construction loan: Buyers usually get a loan for the land when purchasing a house. Getting a loan during pre-launch or while the house is still being built helps to manage payments in sync with the construction progress.
Faster Loan Payoff: The rental income can be used to pay down the existing home loan quicker, potentially saving on interest payments and freeing up capital.
Flexibility for Personal Use: A build-up home provides the flexibility to use the property for personal needs, such as accommodating family during events or offering a place for relatives to stay.
Potential Appreciation: Real estate often appreciates over time, and with a built-up property like a duplex, bungalow or Villa, any improvements or renovations could further increase the value of the home.
Convenience of Established Infra: A build-up home typically comes with essential services and infrastructure like water, electricity, sewage, and access roads, reducing the need for significant additional investments.
Leveraging for Additional Loans: A build-up home can be used as collateral for loans, providing financial leverage for other investments or personal needs.
No Development Risks: Building a house comes with several risks like construction delays, cost overruns, and issues with contractors and government departments. A build-up home eliminates these risks.
Dual Purpose Asset: The property can serve as both an investment and a vacation or second home, particularly if it’s in a desirable location like Chinar Hills.
Quick Equity Building: Since you’re receiving rental income and potentially paying off the mortgage quickly, you’re building equity at a faster rate.
Tax Benefits: Depending on local tax laws, owners of build-up homes may be eligible for various deductions such as home loan interest, property taxes, and expenses related to property maintenance and management.
Sense of belongingness: owning a home can give you a sense of belonging to a community, as you have a permanent place to call home and establish roots. All these emotional advantages of owning a residential property can contribute to a more fulfilling and satisfying life.
Overall, a build-up home presents a more immediate and tangible investment that can provide both financial returns and personal utility. In contrast, investment in residential plots could offer potentially higher long-term gains, but with greater risk and without the benefits of immediate use or income. It’s essential to assess both the financial aspects and personal circumstances when deciding between these two real estate investment options.
If you are looking for build-up homes we’ve got options galore at Urban Terrace! From high-end villas dripping luxury to charming bungalows brimming with cosiness—not forgetting roomy duplexes tailor-fit for spreading out—your perfect match is here.