You might do it for the house you want to build or maybe the restaurant you want to make but no matter what you wish might be for putting your money into real-estate, it does require a pretty penny. When you are entering a market having to put a lot you become more cautious which is a necessity but comes the diversity of the kinds of properties available and this very factor can be paralyzing.
There is an array of options to choose from and when it is such a big of an investment, the decision of which one suits you and which one suits me might differ according to our requirement, age, pay scale, and purpose. So let us discuss the two very popular varieties of properties available.
For starters, ready to move in property makes more sense when the buyer is looking for accommodation and under construction, the property makes more sense when the buyer is looking at it from an investment point of view, and despite what the buyer might be looking for, the property should somehow yield the buyer some margin of profit in the long run because they are investing a big amount on the property.
WHO SHOULD PICK A READY TO MOVE IN PROPERTY?
When people move from city to city pursuing different occupations, dreams, and aspirations it can be hard to move into a house that is not is living conditions. This not only holds the capacity to put a dent in your pocket but also holds the capacity to get you kicked off if the property you are living in does not have occupancy and a completion certificate. When you are new to a city and you do not know whether you are going live here for the rest of your investing (if you are in the position to do so) can be pretty risky because you are in a hurry and want a quick fix.
In such a situation a ready to move in property is ideal for you! You can look around the house and see how the finishing is, how the backyard is, and how the balcony is. The building material is also very evident and can be inspected easily. And on top of all this, you can look around and find who your neighbors will be and find how the surrounding area is, is it crowded and noisy or is it just too far away from the city because you will be getting what you are seeing.
There is a higher chance of such homes being registered with RERA which in turn saves you a lot of running around government offices for not getting kicked out and being on a safer side.
However, there is a disadvantage of such properties, and that is as they are already made and prepared to host people in, they are generally a higher price than their contemporary, the under-construction houses. They also will not be able to provide you with the choice to change the décor, finishing, and flooring, etc. Hence, if you are considering to buy a ready to move in property, please ensure that the property comes with an Occupancy and a Completion certificate. That will make the investment somewhat worth it because it will come with all the benefits like tax benefits.
THINGS TO LOOK FOR BEFORE CONSIDERING BUYING ANY “UNDER CONSTRUCTION PROPERTY”
Under-construction properties are generally situated on the “not so well established” parts of the city, which generally means that they are not completely done with the finishing and the house is situated in some part of the city that has not received much development. This gives the buyer to amass on the future developmental aspects of the property. As the development of the surroundings of the property escalates, the price of your property rises. But it doesn’t have to be this way every time. One has to look at the location and plans around that area. Moreover, in an under-construction project, a buyer also has flexibility in payments, with options like construction-linked plans, subvention schemes, flexible payment plans, etc.
However, such properties usually do not come with any certification and run low on authenticity. This does not just raise the chances of being kicked out of the property for not able to provide proper papers, but it also raises the chances of fraudulent and losing all the money. Such properties are often used as a hook to engulf in all that is possible.
But the establishment of the Real Estate (Regulation and Development) Act (RERA) and other buyer-friendly policies, aimed at bringing about greater transparency and compliance from developers, could boost home buyers’ confidence in investing in under-construction projects. However, in places where the RERA is not yet implemented, it is a must for a home buyer to check the credentials of the developer and choose a reputed builder for any business at all.
Apart from the risk of being caught in a fraudulent, under construction properties can be more expensive owing to how much work is left on the buyer to complete, all of this and there is GST to consider too. The proper calculation of these renovating processes can cause severe shortcomings in the overall deal and profit.
THINGS TO KEEP IN MIND BEFORE INVESTING IN ANY OF THE ABOVE MENTIONED PROPERTIES:
- Know exactly what you want and what your budget it.
- Compare your budget to the entire deal of renovating/finishing the last touches, the fuel, and transport expenses that would escalate if you were to live here, etc.
- Make sure the property has all the required licensing and documents.
- Make sure you involve all the parties involving in this affair actively.
- In the age of internet and accessibility, the buyer should check the social media, articles, and reviews and pretty much anything they could find about the builder and the project that may concern them.