As we know, the COVID-19 pandemic has changed the world in several ways. Starting from their lifestyle to living differently and, thinking differently. Nowadays, consumer across the globe are looking at products and brands through a new lens. If you can see the value of real estate as an asset class, which is more reliable, as compared to the volatile and risky stock market. With this reduction in stamp duty, making it favorable for people who are looking to buy home. Also, several developers are offering discounts to the potential home buyer as he can strike a better deal. However, buying a home is not an easy task. Besides this another decision that compounds the dilemma for home buyers, is whether to choose a ready-to-move-in house or an under-construction one. Like it is said there is two signs of coins positive and negative and, the choice will depend on various aspects like, what the buyer is looking for, his needs/requirements an whether one is buying for investment or end-use.
As the pandemic and work from home (WFH) becoming more ubiquitous, ambitious home buyers preferring ready-to-move-in homes, as buyer’s discovered it much safer in this present situation. Many advantages of opting a ready-to-move-in flat are like it aids the buyer to evade costs associated with living in a rental housing and save them from long wait for an under-construction project completion. Apart from giving sense of security it also provides buyers opportunity to check the vicinity of the house plus socializing with neighborhood.
As per a recent survey conducted by No Broker, ready-to-move-in properties have been the most preferred by buyers (78 per cent) in the past year and the primary reason behind this preference is that buyer exactly get what they see. Buyer get the experience of quality of final product. Secondly, buyer can know about the people living in neighborhood. Also, clarity on connectivity’s information such as local transports, schools, hospitals and entertainment around the area.
In ready-to-move properties understanding of Occupancy Certificate (OC) is strongly important. It provides the information to buyer that property is built according to the approved plans and by- laws of the government. It adheres the building code of conduct and information about basic amenities. Also, it informs the buyer that NOC (No Objection Certificate) has been cleared.
Keeping all the advantages of Ready-to-move-in properties, however primary factor is price. The purchase is always dependent on the financial situation of the buyer. One should have strong financial position for a ready to move in flats, as you have to pay the cost of the property before the builder handover the unit. Despite of the premium cost price of ready to move in properties, another big advantage is that buyer does not pay any GST whereas under construction attracts 12%.
An under-construction property does not hurt a buyer’s pocket as much as a ready home does at the time of buying. If factors such as location, area, property type and builder are same, a ready-to-move house costs more than an under-construction one. The difference in pricing can vary from anywhere between 10 – 30 percent.
Buying an under-construction property usually yields a higher return on investment due an extended window period between the buying stage and delivery timeline. If you sell the property closer to possession, you stand a good chance of earning a healthy appreciation on your capital investment.
One of the prime advantages of a ready unit is the absence of any waiting period. All you have to do is make the payment, go through all the documentation work and move in. This also saves you from the double burden of paying your rent and the EMIs, in case you are getting the home purchase financed.
Unlike an under-construction unit, in case of a ready unit, you actually get what you have paid for. As the unit is ready for you to inspect before you finalise the purchase, there is no risk of discrepancies with the promised layout, features, and amenities, among other important things.