Ready to Move Houses Rule the Roost!
Ready-to-move houses are now the flavour of the season — and, why not!— Mamta Sinha
Hit hard by project delays and negative market feedback, prospective homebuyers are shying away from investing in projects under construction. This despite the implementation of RERA and many other policy reforms.
“There is still a lot of uncertainty about projects under construction or planned because of the negative market feedback that has been going around about stalled projects. Most buyers genuinely interested in home acquisition are in no mood to gamble. While projects under construction by well-capitalized and diversified developers are still finding buyers, people looking at areas where such developers are not active prefer to hedge their bets and buy ready-to-move houses,” Anuj Puri, chairman of ANAROCK Property Consultants, said.
On top of this, ready-to-move properties do not attract GST, and the price difference that traditionally exists between completed projects and those under construction has also reduced considerably, making ready options more affordable than ever before. Let us look at some factors which have made ready-to-move houses attractive in the current market scenario:
1. Lowest risk: Buyers are at the lowest-possible risk when they buy ready-to-move (RTM) houses, as there is no question of delay and deviation from the promised property specifications as well as project-level amenities. “The first and foremost advantage of buying a ready-to-move house is that buyers are aware of what they are spending their money on. The ambiguity around the quality of construction and fixtures, facilities and amenities, etc, can be eliminated,” Pankaj Bansal, director of M3M Group, says.
2. Instant gratification: Though real estate is not a consumer durable, there is a certain degree of impassivity involved. Presented with the option of buying a ready house or one under construction, a buyer is likely to go for an RTM home because he can move in almost immediately.
3. Savings on rental outgo: Buying a ready-to-move house eliminates the need to pay monthly rentals over and above the EMIs towards a home loan. “This results in significant savings which can be utilized to fit out the house or may be invested in other instruments like mutual funds and FDs,” Puri says.
4. Immediate fit-outs: Home buyers can budget the interior decoration, painting and installation of essential electric and plumbing fittings immediately and do not have to keep the necessary funds in reserve. In the case of a property under construction, such funds may be consumed by other requirements by the time the property is handed over.
5. Knowledge of neighborhood: It is essential for a buyer to know his neighbourhood. “Things like available infrastructure around the area like nearby markets, common public areas and parks, and connectivity play an important role in the purchase of a property. In the case of a ready-to-move house, buyers have the option of surveying the project, talk to neighbours, and check for themselves the availability and quality of basic amenities and connectivity options, etc. Along with this, their return on investment starts from the day of the purchase as they can move in as soon as they want,” Gaurav Bhalla, MD of Vatika Group, says.
6. Exact area of property: Builders say the major bone of contention earlier was the super area versus carpet area ratio, which used to be under the wraps unless the property was delivered.
“Today ready-to-move property can be inspected for the usable area by buyers, who need not worry how much of the super area is available for actual use, as is the case when a property is still under construction,” Rahul Singla, director of Mapsko Group, says.
7. Plan kid’s school or college requirements:
“This and many others aspects of daily life can be strategized if the house is immediately inhabitable,” Puri says.
Source : TOI