Often buyers are in a dilemma while making a real estate property decision. The major confusion lies in whether to buy a ready to move property or an under-construction property. It is wise to understand the pros and cons of both and make a decision as per what suits you the best. Interested to know more? Then let’s find out.
The real estate market has changed its characteristics ever since the government of India enacted the RERA Act and is no more subject to the high risks due to the level of transparency. That’s why a lot of people are preferring under-construction properties also. But there is a lot more than just safety and pricing. Let’s understand, which is better under construction or ready for possession flat in detail.
Pros of buying a ready to move property
One of the advantages is the absence of any waiting period. You just need to make the payment, go through all the documentation work and move in. In a ready to move property, you will buy exactly what you see. You can witness all the aspects of the property and can easily judge whether the project specifications match the standards as per your expectations. Service tax is exempted if you choose to buy a ready-to-move-in property. The recently implemented Goods and Services Tax (GST) exempts the ready-to-move properties.
Cons of buying a ready to move property
There is no flexibility in payment as you need to do all the payments at one go which includes down payment, registration charges, stamp duty, etc. If you invest in ready-to-move-in property, there is very less scope of modifications and refurbishing a flat involves huge costs. Also, another drawback of buying a ready-to-move property is the higher cost as compared to an under-construction property.
Note- Individuals sellers usually demand one-time payment, but most realtors have flexible payment plans.
Pros of buying an under-construction property
There is no urgent need of paying the whole amount in one go, also the builders and construction firms let you deposit the money in phases and the maximum amount is to be given at the time of possession (With the help of home loan). When you book an under-construction property, you get wider choices and more options to select you like the floor of your flat, etc. The chances of price appreciation with under-construction projects are higher. Buyers can avail all the information regarding all the under-construction properties on their respective State’s RERA website.
Cons of buying an under-construction property
The only element of risk involved while investing in an under-construction project is that the builder can fail to deliver the project on time. Due to various reasons such as funding crunch, an increase in the prices of construction materials and lending rates, etc. Thus, it is advised to do a detailed background check of the builder before making any investment decisions in an under-construction project. Due to delay in completion of the projects, those who take home loans on under-construction properties it is risky to lose out on the tax benefits. There could also be a chance of disappointment of not getting the promised product at the time of possession.
And that’s it. Both of these property types serve different purposes and intents, it’s better to understand the benefits and consequences of both and make a buying decision as per what suits you the best.