In cities like Pune, Bangalore, Hyderabad; opening up of startups, better employment opportunities and expanding robust infrastructure have caused an increase in the demand for residential properties, especially the ready to move in ones. Even some of the newly built flats are open for resale as ready to move in property.
For instance, resale flats in Pune are available at Western Avenue Wakad, where around 42% of the units are yet to be booked. In today’s fast-paced world, ready to move in properties are gaining a lot of popularity. However, before making a choice, it is always better to weigh the pros and cons of the same.
Pros of buying a ready to move in property-
– Immediate possession:
One of the major benefits of a ready to move in property is that you can pack your luggage and move in as soon as you make the payment and sign the documents. The waiting time for a ready to move in property is around a few days and is usually less than a month. There are no uncertainties or delays related to the possession of the property.
– You get what you see:
Ready to move in properties are completed units ready to be delivered to the buyer. The buyer will be paying for exactly what he/she sees. Unlike an under-construction property, one can inspect the ready to move property before finalizing the payment. Thus, the possibility of discrepancies in terms of layout, fittings and amenities is almost nil.
– Easy legal status:
It is easier to check the legal status of a ready to move in property. There are certain legalities and paperwork that must be completed to allow occupancy in a newly constructed property. Since the construction is complete and the property is ready to use, it verifies the legal compliance of the property. Also, banks provides easy home loans for buying a property in a completed project.
– No service Tax:
A major benefit of buying a ready to move in house is the tax exclusion that it is entitled to. As per the new tax regime of GST, a 12% tax will be levied on the purchase of an under-construction property. However, GST will not be applicable to the sale of a property after the issuance of the completion certificate. This tax exclusion can save a significant amount of money.
Cons of buying a ready to move in property-
– Payment plan not flexible:
The payment of a ready to move in property requires a large amount of money at one go. To purchase a ready to move in property one has to arrange funds for the down payment, registration fees, stamp duty, maintenance charge all at a time as all these payments are to be paid upfront in one go. Unlike an under-construction property, the payment for ready to move in properties cannot be made in phases.
– Increased cost:
The price of the ready to move in properties are always inflated. Ready to move in properties are seen to be around 20-30% more expensive than the properties bought during pre-launch and launch period. An under-construction project forecasts an increase in the value of the project by the time it is completed. The price of ready to move home is inclusive of the expected value appreciation of the project.
– Limited choice and low scope of modification:
Ready to move in homes restrict the options of the buyer. When one decides to buy a ready to move in house in a completed project, chances are very low that the buyer will get a floor/view/unit of his/her preference. It is more like ‘selecting from the rest’. Plus, apart from small internal changes and modifications, it is not possible to incorporate any substantial modification in ready property.
– Possibility of RERA exclusion:
The RERA act governing the real estate sector of the country became effective from 1st May 2017. However, those properties which obtained occupancy certificate prior to the commencement of the act will not be under the ambit of RERA. In that case, developers can hide some vital information about the property, in case there is any non-compliance.
Whether you want to buy an under construction property or ready to move in property, you can fund your purchase by taking a home loan from Bajaj Finserv Homes & Loans. It offers home loans and also provides other services like assistance in property search, guidance on legalities and paperwork, property dossier etc.