UNDER CONSTRUCTION OR READY TO MOVE PROPERTY: WHAT TO CHOOSE?

Introduction

Home buyers are often at cross-roads when it comes to choosing the type of house they should invest in-under construction or ready to move property? Both types of housing serve different goals, and bring their set of advantages and challenges to consider. So it is imperative to thoroughly evaluate the both options in-depth before making the final decision.

What to Choose?

One of the most obvious gains that a home buyer tends to make from an under-construction property is the price factor. In contrast, should you consider buying a property that is ready-to-move-in (RTM), assuming all other factors such as location, area, brand, and infrastructure are in place, then such a property will easily cost you a good margin in the range of 10% to 30% higher. This is a substantial cost to factor in when buying a home property that already costs quite a lot, together.

Ready to move plots in Guduvanchery

Home buyers primarily invest in such properties as a future investment for financial gains. If the driving factor in your investment is higher returns, then you may want to consider buying a property that is under-construction and selling it at a timeline when the property is ready for possession. This is because of the opportunity the buyer has between the time the property is bought and sold at a later date. In contrast, RTM properties offer little attraction by way of capital gains, should you plan to sell in the future.

One of the benefits of choosing an RTM property is the absence of GST, which means you automatically save 12 percent, though, on the other hand, such properties are costlier to purchase, and necessitates immediate funding.

No GST for ready to move properties

Money alone is not the sole factor for choosing one property over the other. It is also the dream of moving into your own home when you want to, and that is possible with RTM properties. Properties under construction, however, pose a serious risk of delayed hand-offs and sometimes in extreme cases, even cancellation of the property. However, with the implementation of the Real Estate (Regulation& Development) Act 2016 (RERA), a number of provisions have been introduced to protect buyers and builders alike. In essence a project registered under RERA indicates greater transparency

In summary, both types of projects, whether it is a ready-to-move-in property or under construction property, there are common guidelines that apply to both. Most basic is the validity of the project to ensure there are no hidden legal cases pending over the builder or the project. This requires a thorough legal vetting of all documents to ensure all approvals are in place. Nowadays, social media influence is huge. Take enough time to do a background check about the property you are interested in investing in. Look up reviews to understand the builder’s credibility. You can also post in forums to get further information. Most important of all, make sure you have your financial plans in place to make room for such a huge investment.