Property buyers always look for the best deal they can find with the resources and time available to them. Property prices are now subdued more than ever and there are a lot of buyers in the market. Buying a property is the most tiring task. While the excitement of owning one’s own property pushes one harder to get involved the process, still the task of going through a lot of details may be frustrating. Going through the process is a must as any negligence can cost very big in future.
A question that bothers almost all property buyers is whether they should go for a ready to move in or an under construction property. Well, it totally depends on one’s current need, whether you are looking to buy a property for investment or for residential purpose, keeping in mind financial.
There are pros and cons for both the cases. Let’s go for each of them in detail:
Buying an under-construction property
Buying an under construction property is the most popular nowadays. Advertisements of the new housing complex are done through newspapers, TV and other media. Publicity is also done by various agents at different places such as malls, markets etc. Here the goal is to sell as many properties as possible before the complex is actually built.
Now let us look at the pros and cons of buying an under construction property.
PROS :
- Cheaper – Buying an under-construction property is cheaper as compared to a ready to move in property In Delhi a ready to move in flat costs about Rs. 30-40 lakhs, while an under construction flat of the same type can be bought in the range of Rs. 20 – 30 lakhs. So the cost difference plays a very significant role here.
- Low EMI’s- Initial EMIs are low in case of an under-construction property as they are paid as the work progresses.
- Profit for both seller and buyer –A buyer gets the cost benefit while the seller gets a number of customers even before actually building the complex. So it’s a win-win situation for both of them.
- High returns – This is the most important factor compelling buyers to invest in an under construction property. Such advantage is not possible in case of ready to move in property.
CONS :
- High risk – A lot of buyers lose their money because of the builders not being able to complete the housing projects owing to the reasons like increased raw material cost, higher interest rates etc. such cases have been registered in Delhi/NCR.
- Outlook of the market – Because of the crisis sometimes it is not possible to complete the project. The financial crisis of 2008 did not allow builders to build a chip factory, a few engineering and medical colleges, banks and so on which were supposed to be built at Hyderabad.
- Sometimes practicality and paperwork don’t match – There have been many cases where buyers don’t get what they are promised. The document work and actual property differ a lot, eventually ending in a conflict between the buyer and the seller.
Buying a ready to move in property
Buying a ready to move in the house has become the newest trend in real estate business Nowadays people are showing more interest in buying ready to move in property rather than under construction property because of the longer possession time of the latter. According to a recent report, even more than around 24,447 ready to move in flats available for rent in Bangalore.
Now let us look at the pros and cons of buying a ready to move in property.
PROS :
- Immediate availability – All a buyer needs to do is to pay, sign necessary documents, and transport their baggage to the new place. Here buyers do not have to wait to move into their new house which holds a great advantage over the previous case.
- What you see is what you get – In a ready to move property, you get what you see. Since the housing complex is ready, getting feedback about the nearby locality centers become easy. Many online firms are selling ready to move in flats in Gurgaon both 2BHK and 3BHK.
- Immediate Relief from Rent – Once the buyer moves into the new house, he will not have to pay any rent. All the buyer has to pay is the EMI. However, in an under-construction property, the buyer will have to overcome the EMI and Rent costs. Hyderabad, a hub of software engineering jobs, the majority of job holders prefer buying the flats.
- Low Risk – There is less risk of delays and developers in case of a ready to move property. In Chennai, several ready to move in apartment builders are spurring up due to rising demand.
- Tax Benefits – In a ready to move in property, the buyer can claim tax exemptions on home loans on both principal and interest repayment immediately.
- Only one of the worries with such flats that the buyer has no idea whether the property he is buying is properly constructed or not in terms of materials used the strength of the foundation. So if not maintained properly the house might be damaged soon.
However, opting between an under construction and ready to move property is a matter of personal need and financial condition.
Under Construction Property is better, if:
- One is buying property from an investment point of view.
- One wants to buy a slightly bigger house in the budget and can wait for it.
- One wants better choice in terms of location.
Ready to Move in Property is better, if:
- One is looking for immediate possession and wants to shift in. Such is the case of Pune where many buy a property every year.
- One doesn’t want to take high risk and get into any disputes.
- One wants to get rid of house rent .
Although the cost of a ready-to-move-in flat is much higher than an under-construction property, this difference in cost seems unimportant and is readily compensated owing to the large number pf benefits one gets in case of a ready-to-move-in flat. Undoubtedly, it is a known fact that the projects that are ready to be bought by the buyers or projects that are almost nearing completion are expensive than the under-construction projects.
Nonetheless, many buyers are willing to acquire such property instantaneously once they are all set to make the one-time purchase of their lives that is their homes. They would not prefer waiting once they have set their minds and have finances ready for the purpose. Several sound reasons as mentioned above that put the ready-to-move-in flat, a much-preferred choice than under-construction property.
Source : http://blog.puneproperties.com/blog/ready-to-move-in-property-the-next-generation-home-solution/
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