June 25,2019

This very basic question will evoke many answers but the most common refrain would be: WHY NOT? Yes, this common refrain today has become a sort of must-have condition for first time home buyers because of various factors one reads today – the most obvious being builders not giving delivery on time, prices rising beyond one’s means and various new regulations introduced by the government now and then to rein in errant builders and fraudulent middlemen. We list below some of the very important reasons why customers today are opting from ready-made homes/flats even though they are a tad costlier and pinch your pocket more than ever. The benefits of buying ready-to-move-in homes are as follows: 

  1. IMMEDIATE POSSESSION: Buyers’ do not have to wait to move into the house. All the customer has to do today is sign the agreement, make the payment and move in with their baggage. It benefits both the buyer and the builder; more so the builder because he doesn’t have to wait to payments to be staggered according to the stage of construction.
  2. REDUCED COST: Opting for a ready construction property reduces your total burden borne by you to buy the property especially if you are taking a home loan. In under construction properties, the customer unnecessarily makes payment towards PRE-EMI Interest and the actual EMI commences only when the builder gives possession of the property. This increases the overall burden on the customer where he has to fork out only interest to the bank and wait for the construction to be completed. Many a times builder don’t complete the project on time and if your agreement has a time binding clause which stipulates that property possession should be given say after 18 months or 24 months; then banks or financial institutions start deducting your EMI even if you haven’t received possession of the property which is a sort of double-whammy for the customer.
  3. YOU GET WHAT YOU SEE: Buyers pay for what they see. As a customer is moving into a ready house; he makes an informed decision and get a fair idea of the nearby locality, schools or colleges, shopping and utilities centre and most importantly how far is it from your place of work.
  4. SUPPORTING INFRASTRUCTURE: A lot of new projects are coming up on the periphery of major cities where scrupulous builders promise lot of infrastructure facilities like 24 hours water supply, Good Roads from your home till the nearest Railway/Bus station, uninterrupted power supply or backup in case there is power shortage. These are promised only when the project gets completed, but under-construction projects have to wait much longer for deployment of basic infrastructure. This naturally makes buyers uncomfortable while shelling out money based on promised construction not getting completed as per stipulated time periods and some who have the urgency to move into their new homes and also start living life with decent facilities instead of waiting indefinitely for them to be provided.
  5. IMMEDIATE RELIEF FROM RENT: A lot of people especially newly married couples or bachelors moving into other cities as per their job requirement nowadays are paying astronomical rent on rented properties. Apart for that, the daily travelling expenses from their office to their rented house also places an extra burden on their monthly expenses. Add to that the legal charges, broker fees and upfront security deposit payment sets back many aspiring youngsters or couples who want to save money from their new jobs and wait for some time to buy a property. The aforesaid mentioned costs outweigh the monthly instalment of a home loan taken for a ready possession property. Also many customers take a house in another city in anticipation of a job transfer which doesn’t happen due to unforeseen circumstances; then such properties tend to generate immediate rental income for the borrower thus offsetting some amount of EMI burden.
  6. IMPACT OF GST: GST implementation on under-construction properties @ 12% has put an enormous burden on customers who are not always to ready to shell out this additional tax burden while buying an under-construction property. They want to do away with this tax burden and hence prefer to buy a readymade property thus evading the GST burden.
  7. LEGAL STATUS: Many customers who don’t understand complex legal formalities of properties are often fooled by builders. Hence if there is any stay order or injunction on an under-construction property; then the customer runs the risk of the property not getting the property completed on time and also his investment not getting recovered on time. Many fly-by-night operating builders have often duped unsuspecting customers and swindled them of their earning while hiding major legal issues in the property which makes the whole transaction illegal. Hence today customers who are well informed always insist on an Occupancy certificate form a builder while buying a ready possession flat or home.

Buying a property is always a big decision, and it requires a lot of money. So customers should explore their options beforehand and take an informed decision and then go for a ready possession home especially if they are confident about it.

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