Home buying is one of the major aspirations for every individual. While buying a property is difficult task, another decision that burgeon the dilemma is whether to invest in a ready-to-move-in house or an under-construction one. There are significant pros and cons for each; however the choice will depend on aspects such as needs and requirements of whether the property bought is for self use or for investment. Buying an under-construction property makes sense for those who are looking at it from an investment perspective; on the other hand a ready-to-move house makes more sense for those who look at it from living point of view. Listed below are some of the benefits for both under-construction and ready-to-move-in apartments.
Benefits of Under Construction Property
Flexi Payments: Under construction property, in most of the cases, is comparatively affordable when compared to ready to move in property. Also, it comes with flexi-payment options. Thus, a buyer is asked to pay the down payment, which is mostly 20 per cent as the booking amount and rest is paid in the form of the EMI in case of loan, else they can pay the money in installments as per the construction schedule. In under construction, usually a buyer gets several payment plans, which includes construction linked plan, down payment plan, 30:70 scheme, 20:80 scheme to name a few.
Freedom of choice of apartment: In ready to move in apartments, one does not necessarily have many choices about locality or floor, where in under-construction property one can choose from an array of options.
Price appreciation benefit: Since prices of under construction properties are lower, there are good returns. Moreover, with land getting exhausted in the city centres, most of the new projects are coming up on the peripheral areas. Thus, the scope of price appreciation due to future development is high in these new launched projects. Also, if the project located in the close proximity to infrastructural developments get the most benefit of price appreciation. However, to avail this benefit of price appreciation, one must do a basic study about the proposed and ongoing development plans in the region before buying a property.
Customisation: A few developers allow customisations to some level as per homebuyer’s requirements in the construction stage. However, this depends from developer to developer and project to project.
RERA Compliance: Any property with Occupation Certificate as on 1 May, 2017, comes within the mandate to be registered under RERA of their state. It thus becomes more liable to abide by fair trade practices. Homebuyers have the benefit of availing information regarding the under-construction properties on their respective State’s RERA website and are even allowed to seek swift response to their grievance by the Appellate Tribunal formed under RERA.
Benefits of Ready to Move in Property
Visual Satisfaction: In ready to move in properties, one can visit and be thorough on quality or design layouts. This helps one to make a better choice according to the needs.
Rental Relief: In the scenario of under construction property, one might have to wait for 1-2 years before actually getting the possession of home. While, in ready to move in apartment one can move immediately and get relieved from paying extra rent and travelling costs.
Community Living: In a ready to move in apartment one has the advantage to know your neighbours. More importantly, the upkeep of the amenities and facilities available within the community can be inspected.
GST Benefits: GST is not applicable for ready-to-move-in properties. GST is only applicable if the ready-to-move-in apartments have not received completion certificate at the time of sale. Hence, a buyer gets the benefit of knowing and paying the exact amount of money for their homes.
In either or situation where a homebuyer decides to invest in an under-construction property or a ready-to-move-in apartment, a buyer must check whether the project has all the necessary approvals and licenses. One must be on top of getting all the external parties information pertaining to project such as advisories, banks, etc. to gauge the credibility of the project. Another important aspect is the location and to analyze whether it is well connected and has land appreciation value.
