Many buyers are opting for ready-to-move-in homes over those that are still under construction. Here's why.
The most important question when buying a new home is whether to purchase a ready-to-move-in house or an under-construction property. It will be a time-consuming task to change your current home and search for your dream home, because you desire all of the requirements that may be lacking in your current residence to be met by your new home. Furthermore, you do not intend to change your home within the next few years, so the decision is really crucial. But the most important question that arises here is whether to buy a ready-to-move-in house or an under-construction property.
Many factors can be attributed to the rise in ready-to-move-in house as a result of the pandemic. To begin with, these purchases are exempt from GST. Homebuyers can no longer afford to put off moving into a new home for years on end. They are concerned about delays in possession despite the RERA reforms because the market risk is too high. Some developers have shifted their marketing strategies over time to accommodate this trend.
Reasons for investing in read-to-move-in houses:
# Immediate Access – When buyers choose a home that is still being built, they must wait a few years before taking possession. They also assume the risk of project delays due to a lack of funds or payment default. A ready-to-move-in home, on the other hand, only requires making a down payment and signing a few documents before you can move in. This helps the buyer avoid any financial losses due to construction delays.
# Rental Income – The rental income is another significant advantage of a ready-to-move-in home. When a buyer takes possession of a home, they have the option of moving in or renting it out for a profit. This is usually the case when a buyer buys a home in a city where they do not live. The rental income can be used to pay off the EMI on a loan used to purchase the home. Buyers of under-construction homes do not have this advantage because they will have to wait a few years for the completed home to be able to rent it out.
# Tax Benefits – The tax advantages are one of the most significant advantages of a ready-to-move-in home. When a buyer takes out a home loan to pay for a ready-to-move-in home, they are eligible for tax benefits in the year they take possession. This is not the case with under-construction properties, where the buyer will not be able to take advantage of the tax benefit until they take possession of the property, which could take several years. Furthermore, if the project is delayed in construction, the buyer will lose out on any property tax benefits during this time.
# Ready-to-use-amenities – A swimming pool or a clubhouse are now common features in many residential communities. While these features are available as soon as the buyer takes possession of a ready-to-move-in home, they are not available in under-construction homes. The community’s amenities are unlikely to be available at the same time as the home. As a result, even after these apartment owners receive their keys, the swimming pool and gym may not be operational for some time. Even if they are unable to use the property’s facilities, the owner is responsible for the property’s maintenance costs. This is not the case with ready-to-move-in homes, where the buyer can evaluate the community’s amenities before committing to a purchase.
Is it really a good deal to invest in ready-to-move-in house?
The real estate market is always changing, and potential homebuyers are exposed to a variety of risks, ranging from rising costs to construction delays. As a result of these risks, many buyers are opting for ready-to-move-in homes over those that are still under construction. These homes eliminate any costs that may arise as a result of delays and allow homeowners to move in and renovate the home to their liking. Furthermore, before investing, the buyer can evaluate the space and learn more about the surrounding infrastructure. A ready-to-move-in home is an excellent investment for a first-time home buyer.
The real estate market has been stagnant for several years, resulting in fewer launches, lower prices, and higher unsold inventories. Developers have responded by offering enticing deals, discounts, and freebies to entice buyers of ready-to-move properties. Investing in a ready-for-possession project rather than waiting for a new project to come up in the future makes sense for homebuyers.
(By Jas Simran Singh, Group Director, Realistic Realtors)