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Ready-to-Occupy Homes Are Better For Buyers

karthik.k

While buying a property, buyers and investors have two choices – either to go for a ready-to-occupy home or a property that is under construction. While both have various pros and cons, ready-to-occupy projects are currently seeing more demand primarily from end-users. There are various reasons why end-users prefer ready-to-occupy homes instead of under-construction property.

Advantages of ready-to-move-in Homes

There are certain obvious reasons why ready to occupy projects make more sense for end users.

1. Most first time home buyers are end users. Hence, buying a ready property can help end users who buy a house for the first time to save money on their rental payments.

2. Another simple reason why end users prefer ready to occupy projects is that under-construction projects, even from the best developer, have the inherent risk of getting delayed due to circumstances not under the developer’s control. This can usually stem from delays in government procedures, shortage of labourers and availability of raw material. Most end-users are not prepared to face these delays. Ready projects completely eliminate this risk.

3. Under-construction projects have several other risks such as price escalations due to delays, inflation and increasing material cost, variance from the planned layout and so on. Ready projects do not have these risks.

4. While buyers can make alterations in an under-construction property according to their wish, they can make certain operations in a ready-for-possession flats as well.

5. Some may consider that an under-construction project may provide more value. However, there are several costs that come into an under-construction project. Service tax, car parking, sales tax and VAT on built-up etc. are different taxes included during the construction of the project whereas completed properties only attract registration charges. Though under-construction projects are more competitively priced, value-wise, an under-construction project plus taxes is almost the same as completed projects minus the taxes.

Undoubtedly, under-construction projects may make sense for a second house or from investment point of view due to their competitive pricing and other advantages. However, if you are an end-customer willing to buy a house, ready-to-occupy properties make definite sense.

Tags : Advantages of ready-to-move-in Homes buying a ready property Home buyers Ready to occupy homes ready to occupy projects under construction property under-construction projects

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