Purchasing a house is one of the biggest investment decisions in an individual’s life, in general . Moreover, buying a property in Mumbai is not an easy task , given a myriad of choices and several factors such as the location, amenities, connectivity to other locations, the quality of the development, etc. And one of the most common doubts that people have is deciding between a ready-to-move-in home or an under-construction property. Therefore, let’s look into how you can choose between the two options.
What is a ready-to-move-in property?
A ready-to-move-in property is one whose construction has been completed and is, therefore, ready to be moved into immediately. As a result, the buyer does not have to worry about the risks of delays in occupancy.
With a ready-to-move-in property, homebuyers can check the construction quality and the interiors they are about to purchase. With under construction projects, you can check the construction quality and interiors through sample apartments and show flats. However, in the case of a ready-to-move-in property, you can check the construction quality and the interiors of the final product or the house you are about to purchase.
What is an under-construction property?
An under-construction project is the one that is still in the development phase. Therefore, the buyer has to wait for a few years before getting the possession of such a property. The chances of price appreciation owing to future development are high in the case of such projects. However, this rule doesn’t apply to all under-construction projects.
An under-construction project also gives buyers flexibility in payments with the availability of options like subvention schemes, flexible payment plans, construction-linked plans, etc.
Purchasing a new property in Mumbai seems like a prudent decision, irrespective of the type of property you opt for since both ready-to-move-in properties and under-construction ones have their own pros and cons.
Ready-to-move-in houses: The pros and cons
One of the first advantages of a completed residential property is that you can see the finished product and be convinced of the quality of structural and finishing works before you decide to purchase it. Moreover, there are no chances of deviations in amenities, features, and layouts.
From the financial perspective, there is transparency in cost before you sign the agreement. You know the total costs of purchasing and living in the property. These include costs of EMIs, maintenance charges, and other additional charges. The details of these are given to you in advance. In the case of under-construction properties, you can book the property at a reasonable price and need not arrange for a huge sum to buy it immediately.
Moreover, ready-to-move-in properties let you save on GST. After completing the payment formalities and paperwork, you can move into the unit and enjoy your lifestyle. However, the downside of these properties is that you cannot perform much internal modification. Also, their cost can be a lot higher than under-construction homes.
Under-construction projects: The pros and cons
Under-construction projects offer flexible pricing options, making them easier to purchase as compared to ready-to-move-in homes. If you keep all other parameters like size, location, and amenities the same, an under-construction property in Mumbai is slightly more affordable than a ready-to-move-in property with similar features. Furthermore, there is room for modifications if the selected builder has a provision for that.
The most prominent downside to buying a property under construction is the risk of the builder defaulting. The builder might cause indefinite delays or failure in delivering the project, potentially causing major financial losses to home buyers.
There is also a chance the actual possession of the property may get delayed due to changes in the legislations affecting the real estate sector, fluctuations in the supply of raw materials, for instance, cement, and adverse socio-economic or political situations, for instance, the Covid-19 pandemic.
The bottom line
To make the right decision between a ready property and an under-construction property, the buyer must understand the purpose of the purchase. If you are an investor, the ideal purchase for you is an under-construction property in Mumbai. Even though the capital value during the construction phase is at its lowest, it increases as the construction progresses.
A ready-to-move-in flat is suitable for individuals looking for immediate possession. Besides, individuals residing in a rented apartment can pay the EMI and enjoy the new home as well. However, if your purpose for buying a house is living in it in the future, you can opt for under-construction projects since they offer a relatively lower cost, certain level of customisations and a higher degree of flexibility.
Disclaimer – This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.