Under Construction Property Vs. Ready to Move in Property
One problem that usually plagues almost all home buyers is whether to choose a ready to move home or book a home under construction. Since these two attribute types can serve and are suitable for different purposes and intentions, it is necessary to understand their advantages in detail. This is a ready-made guide to help you make a decision which is better under construction and ready to move in property.
Ready to Move in Property
Due to the continuous delays in project delivery in the past few years, buyers have increasingly preferred ready-made apartments. Let us look at its advantages.
Advantages of Ready to Move in Property
- Immediate Availability
One of the main advantages of a ready to move in is that there is no waiting time. All you have to do is pay, complete all the documentation, and move in. This also frees you from the double burden of paying rent and EMI, just in case you buy a mortgage.
- You Get What You See
Unlike a unit under construction, in the case of a prepared unit, you can actually get the price paid. Since the equipment can be checked before completing the purchase, there will be no difference in any other important matters except the promised layout, function, and convenience.
- Free from GST Implication
The recently implemented Goods and Services Tax (GST) imposes a 5% tax on the purchase of properties under construction. However, the ready attribute is not restricted by GST.
Under-Construction Property
Today, buying a house under construction has become one of the easiest ways to realize the dream of owning a house. This proposal in real estate also carries certain risks, the most common being delayed ownership. Let’s take a look at the advantages associated with these attributes.
Advantages of Under-Construction Property
- Easier On the Pocket
The property under construction will not hurt the buyer’s pocket like a ready-to-move house at the time of purchase. If the location, size, type of property, and builder are the same, the cost of available houses is higher than the cost of houses not under construction. The price difference may be between 10% and 30%.
- Higher Returns
The purchase of properties under construction usually yields a higher return on investment because of the extended window period between the purchase phase and the delivery schedule. If the property you sell is closer to owning property, you will likely get a healthy appreciation of the capital investment.
- RERA Compliance
Since May 1, 2017, all properties with professional certificates must be registered in accordance with the RERA of their state. Therefore, the property under construction will inevitably be under the jurisdiction of RERA, so it is possible to comply with fair trade practices. Buyers can obtain information about these properties on the RERA website in their respective states and even seek prompt appeals from RERA’s appeal court.