Decoding The Home Buying Process
A lot of factors play a major role in putting yourself at the decision point of buying a house, and that’s the reason why the home buying process is so complicated. The options are so many, but you just don’t know which one to go for. One such point of discussion is whether to go for ready to move in apartments or the ones that are being constructed. Each option holds its value, and understanding these can significantly impact your decision making process. Let’s begin with the basics and address the most critical factors around choosing between two options.
Completely Built Apartments
As the name suggests, what are ready to live in apartments?
A “ready to move in apartment” translates to a space that has undergone all the necessary construction and is equipped for someone to move in. If you are looking to buy a house and all the funds are readily available to you, turning towards ready to move properties will be the best option for you.
Benefits of Ready to Move in Apartments
You Get to Inspect Entire Unit
One of the key benefits of ready-to-move-in apartments is that you can avoid checked construction imperfections as you can inspect the unit before deciding on the purchase. Instead of just getting an impression about the home from the builder through a visual guide, you can investigate every area yourself and get a hands-on experience.
There is No Down Time
Clearly put, ready possession means that you can enter your perfect home almost instantly after the paperwork is done. Making a dryer available as soon as possible is one of the key benefits of being ready for the change. You need not go through the pain of waiting months or years to take possession of your property. This enables you to enter your new home without much stress and the needed wait.
Ensuring All Amenities Are Functioning
Another consideration when it comes to purchasing an apartment in Kerala is the amenities especially when it comes to ready to occupy apartments. For example, visits to ready-to-move-in apartments allow actual sight of the amenities that are supposed to be fitted in the apartment. This means you will be able to verify the adequacy and superiority of the amenities before making the final decision to purchase. Furthermore, having these amenities in place even before you move in increases the overall desirability and practicality of the property, thereby enhancing your investment and improving your living standards.
Compliance with Hyper Requirements
The reality of how finances intertwine with home buying is the first issue that needs addressing. The loan authorised could be a headache especially when dealing with it while purchasing a home that is yet to be completed. For a completed flat on the other hand getting a loan is very simple. This is primarily attributed to finished properties being seen as less risky to lenders in comparison to those that are still undergoing construction. For that reason, the approval rate for loans on finished properties tends to be relatively high.
Disadvantages of Ready to Move In Apartments
Limited Customizations
Having largely customized ready to move properties would not have been possible according to developers since under construction properties allow for more flexibility but not ready to move properties. This becomes a disadvantage if a purchaser has a specific architectural idea in mind that would be derogated as a result of the purchase of the property due to its existing features.
Poor Negotiation
Acknowledging that there is a set price for ready to move property while in undeconstructed properties it is possible to alter the price is vital. Given the selling price between the sellers and buyers is already set due to pre-determined bases on market forces, the pursuit of pricing during a negotiation between the two parties would see minimal chances of success or experiences altering the terms of sale.
No Scope for Appreciation
The construction of a house or property that is completely builds not be appreciated in terms of value in the very near future making it impossible to earn profits through other selling it out for example. This explains why many people look at purchasing such a property in anticipation that the value of the property would appreciate in the future which is not necessarily true for an already constructed building.
High Cost
Moving-ready properties are usually found to be at a higher price point, in comparison to those that are still under construction. What happens is that in the case of this location, the builders are spending money in order to construct the property and they are hoping to recoup it over a time span. For some buyers who are looking for a home in that location, it can make this property seem rather difficult to acquire.
Ongoing Construction Projects
What Are Ongoing Construction Projects?
Something that you can buy but is not complete and ready to be used is termed as “under-construction apartment”. If you aren’t in much of a hurry to settle your relocation, then selecting an under construction apartment may be a great saving option for you.
Advantages of Ongoing Construction
Lower Price
One of the largest benefits of acquiring a property that is ongoing is the low cost that it comes in as compared to that of a completed project. The reason for this is because the construction is still a work in progress. Hence there is a likelihood that prospective buyers could be offered discounts, enticing offers or even freebies to clinch the deal and have them buy the projects at an early stage.
You Can Suggest Changes
One of the greatest benefits of buying off plan real estate is that you have the opportunity to customize the construction so that the finished home fits your own ideas and requirements. Working with a property that is still being constructed is inherently different from working with a readily available one because the owner gets to personalize what will eventually become their home. You can address changes to the layout, materials used, fixtures, and finishes, making sure that the result is exactly what you envisioned for your dream home.
A Brand New Home
It is where the saying, ‘early birds catch the worm’ comes into play, you get a new home when you purchase an under construction property. Newer properties are usually in good condition, require less maintenance and look good compared to old ones. Old structures have their merits but they often have outdated features and lack the high standard amenities offered in newer structures.
Investment Potential
While a property owner sits back and waits for a project to upscale, brand new opportunities arise, the worth of an early investment may increase in time especially when the surroundings are developed. For those who are able to buy a property at this low price will also have enormous profits in a situation where the feature is in high demand leading to price elevation.
Shortcomings of Ongoing Construction
Open to Considerable Risk
It is quite a risk investing in a construction in progress project. This is largely owing to the possibility of builders not completing the work due to financial constraints or due to supplied raw materials becoming much more expensive say with inflation. This is one of the reasons why you need to make sure that you check the reputation of the builder before investing.
For its Tax Effects
It is common for buyers to take out a mortgage to assist them buy a house and homes enjoy tax advantages on these mortgages as per sections 24, 80EE, and 80C of the Income Tax Act. In the case of ready residential house properties, these are availed at the time of doing possession. On the other hand, the tax benefits on interest paid on housing loans for houses under construction are given in five parts starting with the year when the house is occupied. If the borrower constructs the house in which they reside in within three years, then the tax law permits a maximum claim of interest of rupees one half of a million on a loan secured for a house used for self occupation.
Difference in Design
A typical problem which manifests itself with the houses still under construction is breach of promise at the time of handover of the house. This breach might be in terms of lesser area than what was offered, a different design, or in terms of the number of facilities provided. This can lead to despondency in prospective buyers of the house as they put in a lot of time and effort in getting the perfect home.
GST effect
Purchasers who buy an unfinished construction will incur tax of 5% of its price. Notably, this amount can be large especially when paying the stamp duty and registration fees on a separate basis. However, for benefit of buyers of low cost housing that are below 45 lakhs there is a reduced GST of one percent on the total cost of property.
Key Points to Know Before Selecting Your Perfect Dream Location
Stick to Your Financial Plan
Always remember to first set a budget through which you will determine the most optimal choice depending on the price and how long your intentions are in the future. This means evaluating your capabilities in expenditure and the extent your decision is going to affect your plans and even financial targets.
Establish a Timeline
Before buying a property, I suggest that you set a timeline They can also ask if they are looking for a readymade house, which is the suitable option Because they get no rush once the construction is completed. If you want rental income right away, a strategy such as a fully ready apartment lets you start renting right away thus giving you higher returns without having to wait. In such cases, if you have taken a loan and need to earn rental income in order to pay back installments or maintain the place, then this is quite feasible.
Ideal Home Based on Individuals
It is always important to consider several factors that make up your living standard when choosing between a ready-to-move apartment and one that is under construction In this case, the extent of making your preferences known regarding the level of completion is a significant aspect. A construction project that is underway might be more appropriate, particularly if it is important to you how the place looks or feels because it can be transformed to fit your needs. Similarly, check out the location of the house and how accessible schools, workplaces, or even entertainment centers are.
Market Conditions
Understanding the specific real estate market in which you would like to buy or rent either a fully completed apartment or a house under construction is crucial for decision-making as it helps to understand some parameters of supply, recent trends in pricing and if the property in question will appreciate in value over time. Understanding these indicators should help you to have a better view of the property that you are targeting.
Conclusion
The choice is yours; ready-to-move apartments or properties under construction. It is adviceable to analyze the advantages and disadvantages associated with them. What would be the use of dreams without a breathtaking vision? At Dream Location you always find breathtaking visions with breathtaking buildings because they are exactly the way you pictured them.
For more information about Dream Location and to search your dream property, please visit Dream Location on Google Map. Contact us today to know more about the best real estate deals in Delhi and North India; we will connect you to the right property investment.