Under construction or ready-to-move-in apartment – All you need to know!
Hunting for a new home can be a pain in the back. With the expected increase in sales of the housing sector, more and more builders are trying to enter this race. As the new builders try to make a fortune out of the upcoming opportunities, buyers have a choice of either Under construction or ready-to-move-in apartments. While both of these share some pros and cons, we will discuss both of them and will also tell you which one is beneficial for whom.
When we compare ready-to-move-in apartments to those under construction, we can find many differences amongst them. The very first that anybody would notice is their price. Prices of under-construction projects are less than those of ready to move in. It is so because these apartments may take some months or years to be ready for the end-user. The ones investing in these would be at risk as no one knows the fate of these apartments. Although most projects reflect no problems, some may have difficulties such as court or government interference, quality issues, or even other factors, the live example being COVID. So, this might not be the first choice of end-users. Investors might be more interested in these types of apartments. If choosing the right one, they can make huge profits, and opting for the wrong one could result in a loss. In the case of ready-to-move-in apartments, the prices are much higher. It is so because there is no interference of any kind as the end product is ready. After fulfilling some requirements and completing the documentation, the buyer can move in straight away. So, end-users might be more interested in going for these types of apartments.
Risk is another factor while deciding which one to choose. Ready to move in apartments have minimum or no risk. The buyer can move in as soon as they pay the required amount and complete some legalities. They can also inspect the housing space and can match their requirements with those available there. So, there is a sense of surety and security amongst the buyers. In the case of under-construction apartments, there is a higher risk involved as the end product is not ready and can end up in some halt or delay. Also, the buyer cannot verify if the place meets their requirements and everything that was earlier promised is being fulfilled. But if everything goes right, the buyer or the investor can gain huge capital profits as well. Under-construction apartments are either worth more than their cost or not worth it at all, and there is no in-between.
Other differences that one might notice are the promised amenities and the time of delivery. Ready-to-move-in apartments can be examined by the buyer before buying them. The expected delivery time is also stable and does not fluctuate very often. While in the case of under-construction apartments, the amenities keep on changing as the stages of constructions advance. The builders also compromise some of the promised amenities to speed up the process. Although these practices are illegal and unethical, some builders used to practice them freely before the RERA Act in 2016.
What is the RERA act?
The Real Estate (Regulation and Development) Act, 2016 was introduced to save the home buyer’s hard-earned money from fraudulent builders. It put forward some clauses to prevent malpractices that were done freely before its introduction. It bound the builders within some rules that were to be followed under every circumstance. It also allowed the buyers to seek redressal if anything was found wrong or was not as promised.
This act proved beneficial for those who wanted to invest in an under-construction project. Now, the builder has to work according to the proposed plan or stages of construction. If they fail to do so, they shall be liable to punishment under this act.
For instance, the value of resale property in Noida started rising after the RERA act. Had there been no pandemic, it would’ve been on another level. After the unlock 1.0 back in August 2020, it has started to get on track as the housing societies resumed their construction and new projects are developing in the area. Soon, the property prices are again forecasted to shoot up due to various reasons, so buying both ready-to-move-in and under-construction projects right now would be of great value. Be it for the end-user or an investor in both cases the possessor would have a huge benefit.
After consideration, it is true to say that the RERA act is successful. Any housing project not registered to RERA cannot sell its housing services to anybody. It ensures that the building is under its inspection and is safe to invest in. It also keeps a check on the certified projects to provide a healthy and safe environment for the residents of those buildings.
Conclusion
We have covered most of the queries of a buyer when they choose between a ready-to-move-in or an under-construction property. Since the COVID cases are also in control and more buyers are approaching the sellers to book their homes during this period, it is also important to consider what type of property would benefit them the most, be it for end-use or investing. Now that the government is actively participating in securing the rights of the consumer, this is the best time to invest or to move into a new home. Although the law hasn’t made crystal clear advancements, it has provided relief to the buyers. So, we suggest you be as careful as you can because opportunities like these do not knock on your door very often.