Ready-to-occupy or under construction property

Q: Which is the better options in Mumbai, ready-to-occupy or under construction property?

Santosh TR,

13th July 2015

Investment Advice in Mumbai

ready to move

under construction property

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buying properties in mumbai

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Replies (3)

In spite of these facts, tax breaks always play a major role in real estate investment. If you are looking for tax savings to plan your finances better, go for a ready-to-move in property. According to Section 80C of the Income Tax Act, the principal of Rs 1.5 lakh paid is deducted from income. The interest paid too is eligible for deduction up to Rs. 2 lakh. These rewards take off only after a home is in your possession. So, ready-to-move proves to be a good investment option.

Lekshmi,

13th July 2015

Comment

Hi Amreesh and Pranab,
Here are a few features of your choices that can help you make a choice between ready to move in property and under construction property:
First and the most important factors is financial preparedness, if you have large volume of savings and prepared to make an investment , then go for a ready to move in property in India. On the other hand, if you have found a good location and a good property but you might facing financial problem then go for under construction properties.

Bulbul Verma,

13th July 2015

Comment

According to me, if you are living in a rented apartment and looking for a property to buy, a ready-to-move in property might serve the purpose and help you save on rents, even though it might cost you a little more. But waiting for under construction properties while paying rent is frustrating. As under construction property has possession delay issue in most of the city and states and it has become fashion for the developers these days.

Amreesh Murugan,

13th July 2015

I appreciate what you said Amreesh,
Approval process take a lot of time in India as a result buyers has to face a lot of difficulties during those period.

But if you are investing in an area that is all set to develop, it would be wiser to go for it when the ongoing projects in India is being constructed civic amenities and infrastructural development will catch up as the property is being built. It will make an easy ride for you when you move in later.

Amreesh Murugan,

13th July 2015

Right Amreesh,
If you move into the property before the area is fully developed, you might have to face some difficulties where travel is required for every small purchase and bad access roads. In the meantime, the property rates might pick up, increasing the capital value of the investment.

Pranab Malakar,

13th July 2015

Hi Santosh,
Both options have some advantages and some disadvantages. The decision must be based on the individual buyer profile. The choice would largely depend on the situation and level of your finances and needs.

The risk of a ready-to-move in property in India is almost nil and you can cross check every fact of it before you buy it.

Amreesh Murugan,

13th July 2015

Comment

You are partly right. Because quality of construction is difficult to predict when it comes to real estate. On the other hand, an under construction property might come at a lower price compare to ready to move in property. The difference is almost 25%. So, which one should you go for?

Pranab Malakar,

13th July 2015