What are the Advantages and Disadvantages of buying a ready-to-move house in 2020?

With developers leaving projects unfinished and a lot of people not getting the possession of their house on time, Indians nowadays have been highly careful when it comes to buying a home. Because of Amrapali and other cases in the past, people have lost confidence in developers and are reluctant to bring their money into under-construction ventures as they are afraid of not having their house on time.

Housing is a basic necessity, but, when planning on investing in real estate, citizens are still unsure whether to purchase a ready-to-move-in house or buy a property under construction.

Let us look into the advantages and disadvantages of buying a ready-to-move-house in 2020.

Advantages:

If you are an NRI investor looking to purchase a home to receive rental income, purchasing a finished house lets you quickly start renting the property and receive returns without delay. Another advantage of a ready-to-move-in house is that homeowners do not pay GST.

Note that 5% GST applies to under-construction properties for new developments begun after April 1, 2019, charged over and above the valuation of the property. This means you’ll have to pay Rs 3 lakh as GST if you’re purchasing an under-construction property priced to claim Rs 60 lakh. This GST will not apply to a ready-to-move house, reducing the total cost.

Disadvantages:

If you invest in a ready-to-move property, the end customers barely have any scope for modification. The investor is pressured for options because inside the house there are very little chances of modifying something. It may include living spaces, appliances, or some other configurations inside the house.

It’s no mystery that ready-to-move houses or those near to completion are more costly relative to under-construction projects. A ready-to-move-in house may sometimes cost up to Rs 5 to Rs 7 lakh more.

Conclusion:

Although the expense of a ready-to-move house is certainly higher, it is really easy to cover the gap. Most developers still today give discounts on a ready-to-move property such as waiving stamp duty and registration and freebies such as modular kitchens, basic fittings and allocated parking space etc. Apart from this, if you wisely pick a well-connected spot, you can anticipate a decent rental income that will justify the extra money you’re paying for a ready-to-move house.