Have you ever walked into a showroom and been completely charmed by a particular home? When you see the layout, design, neighborhood, cost, and everything, it just seems perfect for you, and you’re already picturing yourself living there. But when you inquire about it, they tell you it's still under construction, so your heart sinks? Well, let Myra tell you more about under-construction homes and the advantages and disadvantages of them!

Properties that are under construction are usually sold by developers before the homes are ready to be lived in. Homebuyers who purchase houses that are still under construction may be concerned about the end product. Understandably, of course. Because after all the paperwork, it’s a long waiting game where you don’t see the physical output until years later. It is understandable because buying a home is what Myra calls, the purchase of your Biggest Most Prized Possession (BMPP), as it is something you have worked extremely hard for and will be a place you’ll live in for many years. So what would make people buy under con homes? Let me present them to you…

Advantages: 

You’re the #1 Owner of the property!

Everyone loves getting new, unused things right? There’s this certain spark of joy you feel when you get things in pristine and new condition -- now, imagine a completely new house which has been made specifically for YOU to use! When you purchase an under-construction house, everything will be brand new, since you will be the first-ever person to be living in that house. This means you won’t need to allocate some funds towards fixing and repairing anything since it will be the first time anyone’s ever even lived in that house! After the place is fully developed, you can decide what you want to do with the space and enjoy it to the max by customizing the interior or exterior!

Rebates and DISCOUNTS!

New properties mean one thing: more perks! Because the developers are looking to sell their units ASAP, they’ll offer tons of different discounts and rebates, especially for first-time homebuyers. You can get a variety of amazing discounts depending on when and what you're buying. Early-bird discounts or holiday discounts, during festive seasons such as Raya, are some examples. Sometimes the developer would also waive their down payment too! 

Note : All residential properties priced under RM500,000 qualify for a complete stamp duty exemption for first-time home buyers!

#FirstPick!

Do you have your eye out on a specific unit? Might be because it’s a corner lot, or a unit might have a breathtaking view. Well, if you’re quick at making decisions, you might just get exactly what your heart desires because booking units is on a first-come, first served basis. Another perk of being early is that there would be more options available for you to choose from. So, ladies and gentlemen, the earlier you decide, the higher your chances are of snagging the best unit. Chop, chop, go get your dream home!

WARRANTY!

In Malaysia, when you purchase a home under-construction from the developer, you will get a warranty called the Defect Liability Period of up to 24 months. Within this time-frame, homeowners would have the right to rectify defects in the purchased units. Improperly installed tiling, toilet piping, or windows/doors, along with cracks in the walls are some examples of defects that we don't want to see in a new home (booo defects!). If you see any issues with the home during this 24 months period, just make a call to the developer and request for changes to be made to your home! Bear in mind that some defects may take a longer period to rectify, so double check the timeline with your developer to avoid any miscommunication. It'll be your forever home, so it should be worth every ringgit spent!

Disadvantages:

Financially blocked and locked

One of the disadvantages of purchasing under-construction homes is that the waiting period can be quite long (we’re talking 2-4 years), and you have no definite idea of when the project will be done. It could take about two to four years, and during that time, your bank credit is blocked for the whole amount of the loan, making it hard for you to buy another home (which can be a total hassle!). So if you are thinking of moving into another home immediately, you might want to consider this. 

There is a long waiting period

Since the construction is still in progress, be prepared to deal with uncertainty, which will go on for the next two to four years, depending on your home’s title.  The whole process will take a long time, I know, but be patient. Remember about the warranty? IF any defects are found, developers would also need to fix those, which would add time to the entire process. Wait patiently for your ideal home! It’s going to be so worth it!

New development = uncertainties

One reason people are usually hesitant to purchase under-construction homes is because of the feeling of uncertainty you get. It feels like you’re headed into the unknown. Because the area is newly developed, you also wouldn’t know for sure whether there would be public amenities available in the future, or whether the area would be self-sufficient or not. Another thing you need to look out for is the developer whom you purchased from. It’s advisable to purchase from recognised and trusted developers who have a good track record. Before purchasing the plan and house, remember to ask your salesperson as many questions as possible. This is to ensure that you receive everything the developers promised. Make it clear what is included and what is not. Double or even triple check everything!

Alrighty! That concludes our discussion on the advantages and disadvantages of under-construction properties. When buying property that is still under construction, you would of course need to keep in mind both pros and cons, just like how you need to take in both the good and the bad of your significant other. Before you decide to purchase the property and proceed to signing all contracts, make sure to research the developer and the house plan, ask many questions and get as much information as possible from the developer and salesperson. Don't put yourself in a position where you purchase the wrong property and wind yourself in a great deal of trouble. Okay, that is all there is to the things you should keep in mind about under-construction homes. Stay tuned for our next one on sub-sales!