The pandemic has highly affected consumer sentiment in the real estate sector. One such representation of such a shift came in the way of real estate sales peaking at a decadal high in the last quarter of 2021.
People have realised the importance of buying property for both occupancy and investment purposes. From buying land to construct their dream customised homes, investing in under-construction or newly launched projects with the idea of investment, to buying the best ready-to-move-in residential units, homebuyers are exploring and flooding every segment of the real estate market.
The biggest shift in consumer sentiment, however, has been the increasing demand for ready-to-move-in apartments. More and more consumers are looking for projects that allow immediate possession of the property they have invested in.
If you’re looking at properties too, this would have been an important question you would have asked yourself. Should I buy an under-construction property that gives possession in a few years or buy a house and move into it right away?
Let’s look at the major reasons that people are preferring ready-to-move-in properties. This list might help you figure out whether these benefits of ready-to-move-in apartments are worth swaying your decision on which type of property you want to buy.
1. Low-Risk Investment
When buying property, people want to go for low-risk options. This is why properties with clear titles and all necessary permissions and certifications from the regulatory civic bodies are preferred.
With a similar thought in mind, homebuyers like to purchase ready-to-move-in properties to eliminate any risks like late possession. With under-construction properties, there is always a slight chance that the price of your property will increase and you might have to pay more than you decided on.
Since the government allows minimal room for developers to change their project plans, the extra amount you might have to pay for your property wouldn’t be too high. However, having not planned for it would make a difference.
Also, possession dates being moved forward create uncertainty and increase the risk in your investment when buying an undeveloped property.
2. Ownership And Occupancy
One of the biggest benefits of buying a ready-to-move-in property is immediate ownership and occupancy.
Once the property title is transferred to you, you can move in almost overnight. For home buyers buying their first property, this can be great news and a money saver. They will no longer have to pay rent while they wait for their home construction to be completed.
This also means that the monthly payments you will be making will be your home loan or mortgage EMI. If you buy an under-construction home, you will have to pay your current rent along with the previously mentioned charges.
3. Lower Immediate Capital Investment
When somebody decides to buy a plot and construct their dream home, their immediate capital investment increases significantly.
To buy a ready-to-move-in the initial bulk of payments you will be required to make is the down payment, which is a minimum of 20% of the purchase price of the house. The next major payment you will be required to make will be the stamp duty and registration charges, or the closing costs of the property purchase.
However, while constructing your own house, you will be required to pay the downpayment, stamp duty charges, and registration fees on your plot of land. This will then be followed by payments to the governing civic body to inspect and approve construction plans.
Thus increasing the required capital investment in the initial stages of buying a home.
4. You Get What You See
When you decide on a ready-to-move-in property that you’d like to buy, you can make a thorough inspection of what you will be receiving.
You don’t have to look at demo homes, or floor plans. You can visit the exact unit that you will own and look at every single piece of furnishing that you will be using once you move into this house.
Don’t like the light fixture on the balcony? Have it changed before you move in. A leaky faucet in the kitchen sink? Make the developer fix it right away. You can ensure that by the time you move in, which will be much sooner than an under-construction property, everything in your property is livable and exactly as you have seen it.
5. Easy To Estimate A Budget
While you might have a rough idea of what you can afford, under-construction properties will always push your budget a little. Whether it’s a property you decided to construct over a plot of land or an under-development developer project, the total cost, in the end, has been noted to exceed the budget in most cases.
This is due to the uncertainties that can occur during the construction period. While it might not affect you too much if you have wiggle room in your property budget, it might turn out to be a pain if you’re sticking to a stricter budget.
Since all such uncertainties have already taken place and taken care of in a ready-to-move-in property, it’s easier to stay within your budget while buying it. Including your closing costs, which will be easy to calculate, you will have a close approximate value of your home while buying a ready-to-move-in apartment.
6. Tax Benefits
This might be one of the strongest financial reasons to convince you of buying a read-to-move-in flat.
The Indian government currently does not charge any GST on the purchase of a read-to-move-in property. However, a hefty GST of 12% is applicable on under-construction developer projects.
In addition to the GST rebate, taxpayers can also claim tax exemptions on both the principal amount and the interest on home loans. Since these exemptions are only available once the occupancy certificate is received by the buyer, they are not available on under-construction properties until you receive possession.
7. Ready For Use Or Resale
Let’s say you already have a property that you own. You may not even be paying rent if you live in a property you already own. A ready-to-move-in property will still prove to be more beneficial for you.
When buying a second property, an individual usually plans to use it as a source of income. The plan could be to rent it or to list it for re-sale as and when required.
If you’re buying a ready-to-move-in property, you can rent it out right away and start making your money back. This will also allow you to lessen the financial burden of the second mortgage you would have to take to buy said property.
This also allows you to sell the property as soon as the market shows a promising hike.
8. Amenities Ready For Use
This is an amazing part of buying a ready-to-move-in property. Since the construction of the project has been completed, all social infrastructure will also be already in place and ready to use.
This means you can start going to the society gym, use the clubhouse, swim a few laps in the pool, or take long walks on the lawn from the day you move in. Another social infrastructure that will already be in place and make your property ownership experience pleasurable is the security measures.
In ready-to-move-in properties, security guards and CCTV cameras will already be installed and functioning, assuring the safety of you and your loved ones.
Buying a ready-to-move-in house has unlimited benefits similarly, it also has its cons. However, the cons are much more insignificant considering the benefits. The biggest con is the fact that your ready-to-move-in property won’t be customized as per your needs right away. However, many people prefer spending time changing small aspects of the property to eventually create a home that is perfect as per their tastes.
This also allows you the chance to disperse the financial burden over a long period of time.
Whether you’re looking for a ready-to-move-in project or an investment opportunity in an under-construction project, we have all the options for you @clicbrics.