Ready-to-move-in or homes under-construction?
With the change in economic conditions and introduction of new reforms, there is a natural shift in buyer’s preferences towards ready-to-move-in projects these days.
However, if we analyse further, there is a merit (of course with a caveat) in making an investment in projects under construction as well.
INVESTING IN ‘READY-TOMOVE-IN’ HOMES
Immediate possession: One of the primary advantages of investing in a ‘ready-to-move-in’ house is: “Homebuyers get the possession of their houses immediately, without any waiting period–thus avoiding future uncertainty. One is only required to complete all the documentation related to the purchase of the property,” says Amit Chawla, associate director (valuation & advisory services) at Colliers International India.
Financial stability: The buyer will be in a position to make his financial decision with certainty, that is, he can close the rental outflow and can have only one outflow–that of the EMI. In simple terms, only EMI, whereas in projects under construction, the EMI will start once the home loan gets disbursed and one will also have to pay the rent until one gets the possession of the flat.
Getting project details: Also examine the location of the project and learn about the residence prior to purchasing the property. “In a ready-to-move-in project, it is possible for a buyer to visit the project site and check in detail not only the flat he is planning to buy, but also the amenities available there. One can get what one actually sees, which is not possible in the case of a project under construction,” Rahul Singla, director of Mapsko, says.
No risk of discrepancies: “Unlike a project under construction, in a readyto-move-in project, buyers actually get what they have paid for. As the unit is ready for the buyer to inspect before he finalizes the purchase, there is no risk of discrepancies,” Ssumit Berry, managing director of BDI Group, said.
INVESTING IN HOUSES UNDER-CONSTRUCTION
Bargain margin: All the projects under construction must now be registered with RERA, and have to adhere to quality and timely delivery. Due to this, the developer will have a committed timeline to develop and deliver the project to prospective buyers.
“Developers will also be keen to sell the project on a firm timeline for project viability and profit realization. Thus, buyers will have an added advantage of negotiating the best deal,” Amit Chawla says.
Deferred payment: Buying a property under construction in today’s time is a good option considering that it is relatively cheap.