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Residential
Introduction :
People favored under construction homes a few years ago, when economic emotions were high, the economy was on track, and people were buying homes in droves. This decision was made for a variety of reasons, including attractive subvention scheme offers that suit their interests at the time, but as these calculated risks backfired, projects were delayed, and buyers were trapped under the double burden of monthly EMIs and rentals, the trend began to be questioned. This series of events has raised an important dilemma among prospective purchasers and real estate enthusiasts, which is hotly debated: ready-to-move-in homes vs. under-construction properties.
"India's nine biggest property markets would see the delivery of over 7.95 lakh housing units between October 2019 and December 2020," according to a forecast by PropTiger, a real estate advisory service. Over 3.1 lakh units are expected to be delivered in the final three months of 2019, with the remaining 4.83 lakh units arriving during 2020."
Apart from that, according to Dhruv Agarwala, Group CEO of Elara Technologies, which also controls PropTiger.com, Housing.com, and Makaan.com, "new purchasers will have plenty of ready-to-move-in options to choose from." The benefits of buying a ready-to-move-in home are numerous. Let’s look at a few of them.
A ready-to-move home can be moved into right after purchase. It also implies that all of the documentation and approvals for this property have been completed, making loan processing and sale paperwork much easier. Buyers are increasingly selecting ready-to-move houses over the several subsidy programs offering under-construction residences. Buyers are now selecting ready-to-move-in homes, while others are interested in projects that are in advanced stages of building with six months or fewer to completion, in light of the pandemic and previous experience with under-construction properties.
We've compiled a list of reasons why people are interested in ready-to-move properties these days.
- In comparison to an under-construction property, which is subject to 5% GST on the total property cost, a ready-to-move property that has its completion certificate does not incur GST. As a result, the ready-to-move property is a better choice, with buyers benefiting financially.
- Ready-to-move home allows customers to make a buying decision after inspecting the quality of the construction materials and the promised amenities. Most home buyers are now wary and opt for ready-to-move homes, where you get what you see, because buying a home is the most expensive investment decision for most people, and in light of developers breaking their promises, most home buyers are now wary and opt for ready-to-move homes, where you get what you see.
- People who live on rent may find it difficult to handle EMIs and rental payments at the same time if possession is delayed in the case of an under-construction property, making relocation a better alternative. Furthermore, if a developer fails to deliver the house on time, homebuyers must wait indefinitely for delivery and possession, which makes them apprehensive and leads them to purchase a ready-to-move-in home.
- When you acquire a ready-to-move-in apartment, you may eliminate concerns about space, room size, apartment view, building quality, available facilities, and fittings. This makes the process easy for the end-user. The buyer would have a better understanding of what he or she is purchasing.
- Even with the GST reduction, developers in ordinary housing projects can charge GST at a rate of 12 percent with an input tax credit (ITC) or 5% without an ITC. Developers of affordable housing developments can levy GST at the rate of 8% with ITC or 1% without ITC.
GST, on the other hand, is only applied to under-construction houses, so if you buy a ready-to-move-in home, you will avoid paying GST.
As a result, in our final opinion, real estate is a dynamic type of investment and a smart asset alternative that also offers superior future returns. If you are considering purchasing a home and have the financial means to do so, you should consider purchasing a ready-to-move home, as there is not much of a price difference between a ready-to-move and an under-construction property these days, making it a safe option in these times.
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