Under construction or ready to move into a flat: Which is a better option for home buyers?
Under construction or ready to move? into a flat: Which is a better option for home buyers?
There is no shortage of flats in Pune, whether they are being constructed or are already occupied. Choosing a kind is a difficult undertaking because each has advantages and disadvantages, whether the apartment is still being built or is ready for occupancy.?
Given that they serve and suit varied objectives and goals, it is imperative to thoroughly comprehend both the advantages and downsides of each.
This article provides both the advantages and disadvantages of each type of flat so you can decide which is best for you.
Let's first learn about under construction flats.
Under construction flats?
One of the easiest methods to achieve this goal is to buy a property, although doing so entails some risk. A delay in ownership is the risk that this real estate investment presents most frequently. Therefore, it's necessary to take that risk into account before deciding between a ready to move in or under construction apartment.
Let's check the pros and cons of these features.
Pros of buying an under construction property
Pocket-friendly?
If other parameters like location, area, property type, and builder are the same, a house that is ready to move into will cost more than one that is still being built. The price difference can range from 10% to 30%. Price has always been a consideration for buyers when selecting newly built or move-in ready residences.
Higher returns?
This is due to the extended time elapsed between the purchase and delivery, which is often three years or longer.
RERA compliance?
If a property had formal approval as of May 1, 2017, it must be listed under the state's RERA. Properties that are still being built will undoubtedly fall under RERA's purview.
The Cons of buying an under construction property?
Difference in the final product's features?
When it comes to buildings that are still being developed, landlords and property developers sometimes fall short of their commitments. The usual inconsistencies of unaddressed homes include less usable size than promised, a changed layout, and insufficient facilities.
Higher risk?
Due to a number of issues, including financial constraints and the high cost of construction materials, purchasing a house that is still being built bears some risk. Before choosing a builder for a project that is still in the planning stages, a comprehensive background check on them is necessary.
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GST implications?
The stamp duty and registration fees have a significant impact on the price of purchasing a home in India. Affordable homes under Rs 45 lakh are subject to a 1% GST on the total cost of the property, as opposed to a 5% GST for houses over Rs 100,000.
Tax implications?
Tax benefits of up to Rs 30,000 can only be claimed if an apartment is under construction or ready to move in. However, the tax exemption is only valid if the house is moved into and the construction is finished within 3 years of the home loan being obtained.?
Ready to move in flats?
It's vital to consider the delays owners and tenants in this industry have had to deal with over the past few years when purchasing an apartment that is either being built or is already available for occupants. When determining whether to purchase a new house or an apartment that is for sale, this must be taken into account. Let's check the benefits and drawbacks of the same.?
Pros of buying a ready to move in property?
Immediate availability?
One of the key advantages of a ready unit is the absence of a waiting period. If you decide to finance your home purchase, you will also be relieved of the added duty of paying your rent and EMI.
No GST implications?
The new Goods and Services Tax (GST) in India exempts homes that are still being built from the 5% purchase tax. However, because they are still under construction, ready-to-move-in properties are not covered by the GST.?
No risk?
In contrast to an under-construction flat, you get what you pay for in a ready-to-move-in apartment. Due to the fact that the apartment is ready for you to inspect before you complete the purchase, there is no risk that the claimed layout, features, or amenities will not be as described.
The cons of buying a ready to move in property?
Age of the property?
Even when you purchase a ready-to-move-in apartment, you may not necessarily get a brand-new home. It may have been on the market for a very long time and requires adequate upkeep; otherwise, if it is neglected, it may start to seem old.
Construction quality?
You have the chance to track the development of the project to assess how well it is being done in terms of the materials used, the stability of the foundations, etc. when you buy a home that is still being built. Any of these inspections cannot be performed on a ready unit.
High cost?
One of the most obvious drawbacks is the price disparity between purchasing a ready-to-move-in apartment and a property that is still under development. The price disparity could be anything between 20% and 30%, as was previously mentioned.
The top builders in Pune is Parth Developers. They offer the highest-quality apartments in upscale neighborhoods like Kothrud and Karve Nagar. These were the things to think about while deciding whether to purchase ready-to-move-in or under-construction apartments.