Having paid rent for years now, you are ready to take the plunge- yes you have decided to own a home. But isn’t the market confusing you what to choose-Ready to move or Under-construction property? You have been dwelling over this question for many days now and only confusing yourself with responses around.
While it is suggested that ready to move in is a better option in case of ready-cash, it is primarily a personal choice. Let us have a look at the pros and cons of both options.
Under-construction Property
Pros
- Visit different project sites of the builder and check the builder’s track record in terms of project delivery and quality of construction.
- Easy on pocket
- Competitively priced
- Any Non-Structural alterations may be done during construction stage
- The buyer may get interiors done as their wishes.
- RERA protection: As per law, all projects post 1 May, 2017 need to be registered under RERA. This law protects buyer’s interest. Any information regarding these properties can be sought on the buyer’s respective State’s RERA website.
- An under-construction property usually fetches higher return on investment over a period of time.
Cons
- There is higher risk and cost involved. There may be delay in Project delivery, failed delivery, increase in lending rates etc. These hugely impact buyer’s finances and risk.
- At the time of possession there may be discrepancies in the layout, amenities etc in under-construction properties. You did not get what was promised.
- There are no income tax concessions for under-construction homes till possession.
Ready-to-move-in Property
Pros
- There is no risk of a delay the unit will be available
- If you stay in the house you save on rent or earn rent by letting it out.
- In order to reduce his inventory, the builder might give offers and freebies.
- You would get what was promised, no discrepancies in layout, amenities etc.
- Tax benefits
Cons
- The cost difference from an under-construction unit could be anywhere between Rs 20-30 per cent.
- There is no scope for checking quality of construction.
- Ready units having Occupancy Certificate as on 1 May, 2016, are not included under RERA.
- Title clearance is extremely important. This requires a lot of legwork and legal work to ensure correctness of documents.
- There is negligible scope for capital appreciation if the property is a few years old, as a lot of the development around it has already taken place.
Home buying is a crucial decision, think before locking a deal!