Ready possession vs. under construction: Which Is Better for You?
The real estate industry offers housing options including ready possession and under construction homes. There are several factors to be considered when deciding to choose between a ready possession and under construction properties.
In this blog, we will discuss the advantages and disadvantages of ready-possession and under-construction properties.
Ready Possession Properties
Advantages:
1. Immediate Occupancy: Ready-possession properties are perfect for buyers who want to readily occupy their new home without any delay.
2. Physical Inspection: In a ready-possession property, buyers can actually visit and assess the property before deciding to buy it. They can inspect the construction of the building, the design of the rooms, the included features, and the area around the property.
3. Lower Risk: In ready-to-move-in properties, chances of issues like construction delays and changes to the project are highly unlikely. This makes them a more secure investment and eliminates the need to worry about construction taking longer than expected.
4. Savings on Rent: A ready-possession property allows you to move in immediately, so you can save a lot of money on rent. And if you are purchasing the property to rent to others, you can start collecting rent immediately.
5. No GST Impact: When you buy a ready-possession property, you won’t have to pay GST. This can save you a lot of money.
6. Legal Security: Developers of a ready-possession property make sure all the necessary paperwork is done and approved before you take ownership. This means you won’t have to worry about any legal problems with your property.
7. Simpler Loans: It’s easier to get a loan from a bank or a financial company if you’re buying a ready-possession property, compared to under-construction properties.
Disadvantages:
1. More Expensive: Ready-possession properties usually cost more than under-construction properties.
2. Limited Customization: Since the property is already built, buyers may not have many options to change it. They have to accept it as it is, which might not fit all their needs or tastes.
3. Older Construction: If the property was built a while ago, it might not have the newest styles or building standards. This could be a drawback for people who want modern features and up-to-date designs.
Under Construction Properties
Advantages:
1. Lower Initial Cost: Developers offer these properties at a lower price compared to ready-possession properties to attract early buyers.
2. Flexibility in Payments: In most cases, the payment for under construction properties is made based on the construction progress. This can heavily reduce one’s financial pressure, and one will be able to plan their finances much better.
4. Potential Appreciation: The value of the property may appreciate by the time the construction is complete. Buying at a lower price and selling it for a higher price can result in substantial capital gains.
5. Customization: Under-construction properties may allow buyers to design the interior of their homes according to their needs.
Disadvantages:
1. Construction Delays: A big concern with properties that are still being built is the chance of the construction taking longer than planned. This can happen due to problems with rules, money, or building issues, which can push back the finish date and cause trouble.
2. Higher Risk: Buying a property that’s still being built comes with its own risks. The project could stop, or the builder might not do what they said they would, which can lead to money loss and worry for the buyer.
3. Uncertainty: Until the property is finished, it’s hard to know exactly what it will be like. The quality of the build, the features included, and how it looks might be different from what was first thought.
4. GST: Under Construction Properties often have GST added to the price, which can make the total cost much higher. This extra expense should be thought about when looking at the full cost.
Conclusion
Ultimately, the decision as to whether to buy a ready possession or an under construction depends on how much money you have, and how much risk you’re willing to take. There are pros and cons to both options, and realizing these will help you make the right choice.
