Strategic Investments in Under-Construction Flats: Can ₹20 Lakh Turn into ₹1 Crore?

What is the main advantage of investing in under-construction flats? A: The main advantage is the potential for high returns due to the appreciation of property value over time, especially if the investment is made at the early stages of construction. Q: How can investors reduce their initial capital outlay when investing in under-construction properties? A: Investors can use construction-linked loans to reduce their initial cash outflow, allowing them to benefit from the property's appreciation without tying up too much capital upfront. Q: Why is it important to conduct due diligence on the builder before investing in under-construction flats? A: Conducting due diligence on the builder helps ensure that the project will be completed on time and to the promised quality, reducing the risk of delays and financial strain for the investor. Q: What is the typical return on investment for under-construction flats in Hyderabad? A: According to the fintech influencer Sharan Hegde, under-construction flats in Hyderabad can yield returns of 2X, 3X, or even 5X, depending on the timing and leverage used by the investor. Q: What are the risks associated with investing in ready-to-move-in flats? A: Investing in ready-to-move-in flats can result in capital being locked in with modest returns, as rental yields are typically low, and the initial entry cost is high.

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