Over the years, buyers, homeowners, and investors are stuck between investing in an under-construction property or one that is ready to move in. While both have their pros and cons, it is important to understand which type of property meets your specific needs. When looking for a property that suits your needs, you need to look at various factors that will help you make an informed decision.
- Under Construction Flats:
Buying in an under-construction property comes with its own sets of benefits and is one that experts believe offers the best value for money deal in the real estate market.
Pros: Under construction buildings and projects usually come with the advantage of costing close to 10% of the prevailing market rate. As the project is completed over some time, your builder will offer you payment plans, where you pay him or her in installments, based on the work completed. This is usually analyzed based on the slab work and to which floor the building has been constructed. You can therefore manage to arrange for funds, by either applying for a bank loan or by paying the builder in easy installments, which will ensure that you do not feel the added financial burden. Once you can finalize the area in which you want to invest in, then you can almost immediately start looking for upcoming projects in the said area and find one that is per your preferences.
Cons: When investing in an under-construction project, there is always the risk of delayed possession, which home buyers need to be wary of. Before investing in an under-construction building, it is necessary to do your research and find out about the other projects that the builder has or had lined up and whether or not they were completed on time. Before you can go ahead and invest your hard-earned money in a property deal such as a 2 BHK in Vile Parle East, you need to spend sufficient time analyzing the available information at hand.
2. Ready Possession Flats:
Ready possession flats are the most preferred and popular choice of investment for home buyers, especially those who are looking to shift from their current location and have a family or are planning to start one.
Pros: Unlike under-construction projects, ready possession flats, as the name suggests means that owners can almost immediately take possession of the flat and can start living there. If something isn’t as per their liking, then minor modifications can be carried out to suit their preferences. Ready possession flats do not need the buyer to wait for extended periods for the project to be completed, as the flat is not just physically, but legally cleared to be occupied. You will also have the bonus of moving into a building where the society has been formed and registered, and the building has procured clearances such as an OC (Occupation Certificate), Society Registration Certificate, and all the required legal clearances that will make your life a lot easier.
Cons: Just like every investment, even a ready possession flat comes with its own set of cons. For one, the flat is per the prevailing market rate and will usually cost 10% more than an under-construction property. Secondly, the owners of that place, in all likelihood, will not agree to a payment plan and will expect the payment in a few weeks to a month at best. This does not leave you with a lot of time to arrange for the required funds, and will almost certainly result in you having to apply for a bank loan. Moreover, a ready possession flat will be in a building that is at least a few years old at best, which means that it may not be updated with the latest fire and safety standards and may or may not have CCT coverage, 24×7 security, and a host of other safety measures in check.
Investing in a property in Mumbai requires a lot of research and contemplation and many a time, it is advisable to speak with property experts who will help and guide you to make an informed decision. If you are someone who is looking to invest in a property in Mumbai and want to know more about our projects at VijayRaj Residency, then please do not hesitate to reach out to us for all your property needs and we will be more than happy to assist you with the same.