Why Ready-To-Move-In Property Is A Better Option Right Now
Are you stuck with the question 'should you buy under-construction or ready-to-move property'? You will be relaxed to know there are many buyers like you who face this dilemma whether they should invest in 'affordable but risky' or 'expensive but assured' asset. The third kind of asset is 'nearing possession units', which implies properties which will be ready in next six to eight months. Since all of these come with their own set of limitations, here is why you should choose nearing-possession or ready-to-move properties:
Nearing possession properties do not carry premium, anymore
Since the market is imploded with inventories, properties which are ready for possession do not carry a premium as developers are trying to clear the stock before bringing the new ones in the market. In fact, the supply is reciprocated with substantial demand from the buyers as indicated in a recently released quarterly report by PropTiger DataLabs. The report suggests that buyers' inclination continues to be higher towards projects which are showing visible construction progress as 60 per cent of the sales during the quarter were witnessed in such projects launched more than 12 months ago.
Better options available in primary and resale market
Today is the time when buyers are able to find better options in resale market than with developers. Since there is an excess of properties available in the prime locations of the city, the property prices have barely increased, giving an opportunity to serious buyers to make a move.
Apart from this, the pressure of completing project construction on time due to Real Estate Act is on all-time high. Soon, this will add up to the existing inventory, taking the total stock of vacant units higher. This is another reason why developers are taking a step back and offering ready-to-move-in properties at cost effective prices to compete in the resale market.
More assurance and 'risk-free' asset
With all approvals and permissions in place, once the project moves into construction mode, the risk associated with it gets subsided. This makes it more preferable over projects which are still under soft launch and there is no visible sign of construction. Although these properties are available at lesser prices, they are still comparable to the almost ready options, making the latter a more viable option.
At the end, it remains buyer's choice whether to invest in any of these. But investing in ready to move properties also offers tax rebate. Moreover, if you are staying in a rented property, you can start paying your EMIs as you move into your new home. If this is your second property, you can lease it out to pay EMIs. In short, ready to move properties have their own perks provided you have a ready amount for down payment and approved a home loan.