The COVID-19 pandemic has made one realise the value of real estate as an asset class, which is more reliable than the volatile and risky stock market. Whether to purchase a ready-to-move-in home or one still under construction adds to the dilemma of purchasing a property in Mumbai. While both options have advantages and disadvantages, the choice will depend on various aspects like what the buyer is looking for, his needs/requirements, and whether one is buying for investment or end-use.
With the pandemic and work-from-home (WFH) becoming prevalent, some aspiring home buyers are favouring ready-to-move-in homes, as people find it much safer under the present circumstances. One of the simplest methods to fulfil the dream of home ownership is to purchase a property in Mumbai that is still under development.
Benefits of Under-Construction Property
More manageable on the pocket
An under-construction property in Mumbai does not hurt a buyer's pocket much as a ready-to-move-in home. If aspects such as location, area, property type and builder are the same, a ready-to-move property costs more than an under-construction property.
Due to the long window between the purchasing stage and the delivery schedule, purchasing an under-construction property in Mumbai typically results in a more significant return on investment. You have a strong chance of making a substantial return on your capital investment if you sell the property soon after taking possession.
Every property needs to be registered under its state's RERA if it has an occupancy certificate as of 1 May 2017. Under-construction property in Mumbai, therefore, will necessarily come under the ambit of RERA and, thus, become liable to comply with fair trade practices. Buyers can get information on these properties on the RERA website for their particular state and even request quick resolution of their complaints from the Appellate Tribunal established under RERA.
The lack of a waiting period is one of the main benefits of a ready unit. Paying and completing the necessary paperwork will allow you to move in. Additionally, if you are financing your house purchase, it relieves you of the additional pressure of having to pay both your rent and your EMIs.
Unlike an under-construction unit, in the case of a ready unit, you get the same property as soon as you have paid for it. There is no chance of inconsistencies with the claimed layout, features, and amenities, among other crucial things, because the unit is ready for you to examine before you finalise the purchase.
The recently implemented Goods and Services Tax (GST) levies a five per cent tax on purchasing under-construction properties. But the GST does not apply to ready-to-move-in properties.