When is valid time to create Subobjects/Components?

I’m posting few lines of code just to keep the topic up to date since ConstructObject and AttachTo are deprecated:

void AActorWithInstancedComponent::OnConstruction(const FTransform& Transform)
{
	Super::OnConstruction(Transform);
	 
	class UTestComponent* NewComponent = NewObject<UTestComponent>(this,UTestComponent::StaticClass(), TEXT("NewComponent"));

	NewComponent ->RegisterComponent();

	NewComponent ->AttachToComponent(GetRootComponent(), FAttachmentTransformRules::KeepRelativeTransform);
}

AttachToComponent() only works for USceneComponent and its children and not for UActorComponent

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