Pros & Cons: Ready to move home or under constructed homes

By Amit Wadhwani, Director, SECCPL

Investing in buying a home is one of the biggest decisions of one’s life and is made post serious understanding, deliberation and research. Many questions arise in the minds of the buyer even before they set out looking for properties. The first and foremost of those questions is where do they wish to park their money? Would it be in an under-construction property or a ready to move the project? The buying patterns depend majorly on the requirements and various aspects such as what exactly is the buyer looking for, matching the current requirements as per their needs, or if the buyer is looking for a property to invest in.

Before investing in a property the buyer considers various aspects that play a major role in the long run wherein they can modify or sell the property to gain profit. Since both these property types serve and suit different purposes and intents, it is imperative to know their pros and cons

Ready Move Homes:

1) Pros:

– The buyers get exactly what they see. Right from the neighbours to the whole
infrastructure of the house/building one can get a sense of the final product and vibe of the house, if they intend to stay.

– Another advantage is getting immediate possession and no anticipation on whether the delivery will be as planned or not.

– The recently implemented Goods and Services Tax levies a 12 per cent tax on the purchase of under-construction properties. Ready properties, however, are left out of the ambit of GST.

2) Cons:

– The price point is usually higher than an under-construction property. It may not make good sense from the investment and appreciation stand-point.

– Also, the choice could be limited as the bets options in terms of floor rise or configuration may have already been taken.

Under-construction Homes:

1) Pros:

– Under-construction houses definitely give a better Return on Investment to a buyer as prices are much lower as compared to ready-to-move houses in the same vicinity. Also, there is scope for future development in terms of infrastructure advancement which can lead to appreciation in the value of the area in turn leading to a rise in prices.

– A buyer gets flexibility in payment procedures with options like – construction-linked plan, subvention schemes, flexi-payment plan, make it simple for the buyer.

2) Cons:

– An under-construction house costs less, but going for it means buyers end up paying interest on the home loan plus rent for your present accommodation.

– At times, the builders don’t use good material in construction and even use low quality door and windows, cheap quality sockets and switches are used. They use all possible ways to save the money and reduce the cost of construction and finishing of the house.

– To conclude, the decision is largely ruled by the buyers’ financial situation and requirements. It is highly advised that one must weigh their pros and cons of all the options available for them in the market, determine the choice that best suits all their parameters and then make a decision.

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