Housing is a basic need of people and there is a growing need for homes, keeping residential developers on their toes. However, when it comes to choosing between an under-construction home and a ready-to-move-in home, confusion arises in the home-buyers mind.
While it’s no secret that costs of under-construction homes are lower, it’s the ready-to-move-in homes that buyers are going for. Here are some pointers to help you understand why ready-to-move-in are better than under-construction properties.
Cost – Demonetization, GST and the implementation of RERA has done their part in creating turbulence in the realty sector over the last year. This led to a build-up of unsold inventories, price reductions, and fewer new launches. Builders have been reduced to offering freebies and attractive deals on their ready-to-move-in properties to attract buyers. It, therefore, makes sense to invest in ready-to-move-in homes now. And as the markets are also stabilizing, costs of homes are beginning to look up, making this the ideal time to invest in homes.
Financials – Most people make a down payment on their home and then pay the rest using a home loan. When it’s an under-construction house, the buyer not only pays monthly EMIs on the house but also a monthly rental till the construction is over – making it an expensive deal. A ready-to-move-in house works out cheaper in such a scenario.
Rental income – For those who invest in homes for earning rent or resale, buying ready-to-move-in home helps them start earning right away. Locking away money in under-construction home results in a non-income generating venture for some years, resulting in income loss.
Delivery timelines – Invariably, many builders have been plagued with delays in delivery timings once in a while. This creates a negative impact on the buyer as he has to continue paying monthly EMIs as well as rent for a longer time-period. This sure makes ready-to-move-in homes more lucrative!
Security – There have been many cases where potential homebuyers have lost a lot of money by investing in new/under-construction projects to people posing as builders. They dupe unwary buyers off lakhs of money and disappear into the dark. In such a scenario, there is more security when going to ready-to-move-in homes.
Infrastructure – There are many projects where local infrastructure isn’t available and is promised only by the time construction is over. This leads to frustration for the new home-owners. In such cases, it’s better to move into ready homes as you can first check if the important infrastructure is available.