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With property investment in Mumbai seeing a rise in 2022, the home-buying decision is a phase where most need clarification about the status of the property. Almost all home buyers struggle with whether to buy a ready-to-move-in house, an under-construction one, or a ready-for-fit-out. Because these property types serve and suit different purposes and intents, it is critical to understand what the future holds while settling on a property of choice. Here is a guide to assist you in making your decision.
What is an Under Construction Property?
Less expensive on the wallet
At the time of purchase, an under-construction property does not hurt a buyer’s wallet as much as a ready home does. If the location, area, property type, and builder are all the same, a ready-to-move house will cost more than an under-construction one. The difference in pricing can range from 10% to 30%.
Healthy return on investment
Purchasing an under-construction property typically yields a higher return on investment due to the more extended period between the buying stage and the delivery timeline. You stand a good chance of earning a healthy return on your capital investment if you sell the property closer to possession.
RERA Compliance
Any property with an Occupation Certificate as of May 1, 2017, must be registered under their state’s RERA. As a result, under-construction properties will invariably fall under the purview of RERA and must follow fair trade practices. Buyers can find information about these properties on their respective state’s RERA website and file grievances with the Appellate Tribunal established under RERA.
What is a Ready for Fit Out unit?
Developers typically give home buyers fit-out possession or soft possession once the construction is completed and while the OC application is in process, primarily so that the home buyer can begin their interior work and move in as soon as the OC is received.
The possession of fit-out does not entitle a home buyer to begin living in the apartment. Before residents can move in, they must obtain an occupancy certificate. Occupancy certificates provide legal proof that a property is occupied. With OC in place, you can access basic amenities such as electricity, water, sanitation, and other necessities.
Some south Mumbai houses like Vraj Tiara, Worli, offer 3, 4 and 5 BHK luxurious homes with a ready-for-fit-out construction status. This means that the OC is expected, and one can occupy the homes they have booked. The eagerness to live in a residential property with a 270-degree sea view from every home, well-ventilated with several rooftop amenities including a residential rooftop garden; cafeteria; gym, etc., and strategically located for ease of commute by road and metro is a feeling of exhilaration.
What is a Ready to Move-in property?
The absence of any waiting period is one of the primary benefits of a ready unit. You must pay the deposit, complete the paperwork, and move in. This relieves you of the additional burden of paying rent and EMIs if you are financing your home purchase.
What you see is what you get.
In contrast to an under-construction unit, a ready unit gives you precisely what you paid for. There is no risk of discrepancies with the promised layout, features, and amenities, among other essential things, because the unit is ready to inspect before you finalize the purchase.
Exempt from GST Implications
The recently implemented Goods and Services Tax (GST) imposes a 5% tax on purchasing under-construction real estate. However, ready-to-move-in properties are exempt from GST.
With the various stages of construction in mind, it is simple for home buyers to select the property that meets their needs.
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