5 Reasons Why Panvel is the Next Residential Hotspot
Our way of life has changed significantly since the COVID-19 pandemic, which has had a huge impact on our home-buying decisions. The pandemic has highlighted the value of owning a home rather than renting one. In these uncertain times, owning a home is connected with a sense of protection and safety. However, when it comes to purchasing a home, should a buyer go for a ready-to-move-in home or one that is still under construction?
Choosing between a property that is ready to move and one that is currently under construction is a difficult decision for almost all prospective home buyers. Because both of these property categories serve and fit different aims and intentions, it is essential to fully comprehend their benefits and drawbacks. Here is a ready-made guide to aid your decision making.
What exactly is an under construction home?
A project that is still in the development stage is said to be under construction. As a result, the buyer must wait a few years before getting possession of such a property. Such projects have a high likelihood of experiencing price growth as a result of future development.
The pros and cons of under construction property
For people who are not end-users but rather invest in properties for returns, an under-construction home is always a superior choice. The cost of an under construction home rises as it progresses through the phases of completion. The difference between launch prices and ready possession prices of such a property is quite significant. The greatest price quantum leap occurs when the buyer gets possession of the flat. Therefore, if a housing unit in this category is reserved at an early stage and subsequently sold off just before taking possession, it might generate very large financial returns for property investors.
Properties under construction have more flexible pricing choices, such as periodic payment plans and several enticing offers, making them more affordable than ready-to-move-in houses. When all other parameters such as location, size, and amenities stay constant, a property under construction is frequently somewhat less expensive than a completed home with the same qualities. Pricing differences might range from ten percent to thirty percent or more.
The possibility of the builder defaulting is the most obvious disadvantage of purchasing an under construction property. The builder may cause prolonged delays or failure to complete the project, potentially resulting in significant financial losses to property buyers. A delay in taking ownership of the property may also occur as a result of legislation changes that impact the real estate industry, variations in the supply of raw materials like cement, and unfavourable socioeconomic or political circumstances like the Covid-19 pandemic.
What exactly is a ready-to-move-in home?
A property that has finished construction work and is consequently ready for immediate occupancy is referred to as being "ready to move in." As a result, the buyer need not be concerned about the possibility of occupancy delays.
The pros and cons of ready to move property
The main advantage of a ready-to-move home is that you know exactly what you're getting. Before spending money on a ready-to-move home, the homebuyer can check the construction quality. Additionally, the buyer can check to his satisfaction that the housing unit exactly matches the characteristics and services listed in the sales brochure by the real estate developer.
Before you sign the contract, the costs are transparent from a financial standpoint. You are aware of the full expense of owning and residing in the property. These cover EMI costs as well as maintenance fees and other extra expenditures. You are told the specifics of these in advance. Additionally, ready-to-move-in properties allow you to save on GST. After completing the payment procedures and documentation, you can move into the flat and enjoy your new lifestyle.
One of the biggest disadvantages of purchasing a ready-to-move-in property over an under-construction one is the massive cost. The cost difference could range between 20 and 30 percent. It is quite simple for a property that is still under construction to monitor the progress of the project and learn about the construction's quality, including the materials used, the stability of the foundations, etc. However, you cannot undertake such an inspection in a completed flat.
Purchasing a ready-to-move-in property does not always guarantee a brand new home, as does purchasing an under-construction property. The apartment you purchased may be on the market for a long time. Therefore, if it hasn't been properly maintained, it could appear old.
What is the right choice for you?
The buyer must understand the goal of the purchase in order to make the right choice between a ready-to-move home and an under-construction property. If you are an investor, an under-construction home in Mumbai could be the best option for you. Even though the capital value is lowest during the construction period, it rises as the work advances. For those seeking immediate possession, a ready-to-move-in apartment is appropriate. However, you can choose under-construction projects if your goal is to live there in the future because they are generally less expensive, allow for more customization, and are more flexible. Although purchasing a home can be a risky business, doing your homework and considering your long-term financial goals will help you make a smart decision.
Points to keep in mind, when investing in a ready-to-move-in or an under-construction house
Determine your whole budget for the purchase of the property and make sure your finances are in order in advance.
All required licenses and approvals should be in place for the property.
To determine the project's viability and quality, all information relating to the other parties involved (such as banks, advisers, etc.) should be gathered.
According to your normal commute requirements, choose the appropriate location.
Buyers should look for reviews about the project, developer, and locality on the internet and on social media.