When buying a property, you have choices such as opting for under-construction, resale or ready-to-move-in. Of these, a ready-to-move property is always more expensive than an under-construction property. Do you still want to invest in it? We outline factors you should remember before saying a yes to a ready-to-move property.
What is meant by ready possession? Why are they popular?
Properties that are completed, receive all the certificates like OC and support immediate occupancy are known as ready possession flats.
One of the biggest reasons for the ready-to-move property to gain popularity is the minimal risks that it has. Note that in times of crisis, like the pandemic that lasted for a good three years, most reputed and branded developers also could not cope with their deadlines in under-construction projects for various reasons that finally boiled down to the financial losses incurred by home buyers. During this same period, ready-to-move property types gained popularity for reasons like people wanting to immediately move into a safe space, people wanting larger home spaces owing to things like work from home, online school etc. becoming the new normal etc.
What are the benefits of investing in ready-to-move property?
Mentioned are the advantages of buying a ready possession property:
Tangible assessment
While in case of an under-construction project, one takes the decision based on a sample flat and marketing brochures, in case of a ready-to-move property, the buyer gets to see first-hand what he is buying. Thus, instead of believing the developer’s claims about the location and the different amenities that the project may have, the buyer can verify and if satisfied can invest.
No project delays
Since the buyer is investing in a ready-to-move project, there is no risk of project delay that he will face. A buyer need not worry about project delays, which can often leave money tied up for years.
Tax benefits
A buyer can claim tax deductions under the Income Tax Act for purchasing a real estate property. But, while investing in a ready-to-move property, a buyer is also exempted from paying certain taxes that are levied on under-construction properties- such as the Goods and Services Tax (GST), which is around 5% of the property value.
Rent it faster
If you are looking at a property for investment purposes, then when you invest in a ready-to-move property, you can put it on rent and earn rent as compared to an under-construction property.
Easier home loans
One gets home loans easily on ready-to-move properties as compared to other types.
What are the disadvantages of investing in a ready-to-move property?
Mentioned are the cons of investing in a ready-to-move property:
Upfront payment
While under-construction properties have many payment options such as credit linked payments, subvention scheme etc., there is no such payment scheme that is linked with ready-to-move in projects.
No customisation is possible
In case of an under-construction project there is customisation possible-asking the developer to put a slab in the kitchen etc. However, in case of ready-to-move projects, you don’t have the option for customization unless you buy a project and break it all and make something of your own by spending more money.
Things to check in a ready-to-move propertyÂ
Now that you are aware of the potential benefits this type of property provides, let us also go through the checklist to evaluate whether the ready-to-move property you have zeroed in fits the bill perfectly or not. Remember that whatever is being given by the developer in the housing unit will have a mention with the brand name used in your sales deed agreement. So, go through the copy well and fact check with it when you inspect the property.
Title of the property
Check the title of the property in the documents before choosing the ready-to-move property. This is important to safeguard yourself from fraudulent transactions by buying a property from someone that actually belongs to someone else.
Is it a legal project that is encumbrance free?
Many times ready-to-move properties may land into some legal problems leading to the local body not giving it OC even while the project offers immediate possession. Check if the project you are looking out is free from all such encumbrances as there may be cases where the court may order demolition of illegal buildings. Case in point is that of Noida Supertech Twin Towers demolition that was ordered by the Supreme Court of India. The Twin Towers project had violated serious National Building Codes.
Age of the ready-to-move in property
Check the age of the ready-to-move in property- is it new construction or an old building. Note that a new building will be more expensive than an old building because of the construction type and the amenities that it may have.
Check construction quality
When you are investing in a property, check the construction quality – the materials used and construction certified by a qualified architect, structural engineer etc. A building that has been constructed should last at least 80-90 years before it may go for redevelopment.
9Â points to check inside a ready-to-move house
Mentioned are 9 pointers to check out in a ready possession house.
#1 Direction of the entrance of the house
If you are a believer of Vastu, check the direction of the main door. It is also a good idea to check if the kitchen placement, bathroom and toilet placement are in sync with Vastu recommendations.
#2 Check for ventilation and natural light in the house
Even if you do not believe in Vastu, check for ventilation in the house and if it has abundant natural light. These are important factors in the long run as these have advantages such as reduced electricity bill and a healthy better way of living. Also, if the room is not well-lit it is believed to bring in negative energy in the house, which no buyer would want at the onset of property buying.
#3 Check the flooring
Check if the flooring in the house is the same as what has been promised to you as a buyer. Also, check the colours of the tiles. There have been cases when buyers evaluating ready to move property were surprised to see different colours of tiles used in the living room. In such a case, before proceeding with the deal, you have to highlight the problem to the developer and find out if he will rebuild everything and give. Also, check if the tiles are fitted properly and are crack free.
#4 Check out if configuration fits your requirements
Once you enter the house, see if the living room, the kitchen and the other rooms will be able to accommodate your requirements. Ensure that the house doesn’t sport a cluttered look after fitting all your furniture.
#5 Check the fittings and fixtures in the house
Check all the fittings and fixtures that are being provided by the developer as part of the project. These may include the basic electrical switches, geyser, wash basin and sink taps, shower fittings, jet spray fittings, the closet fittings, the video door phone (VDP) etc. It is a good idea to match the brand mentioned by the developer that he will use and the one that has been provided to you. Also go through the warranties or guarantees on construction and the various fittings and fixtures used.
Some developers also offer modular kitchens and split air conditioners as part of the project. If a buyer has been promised of these, do check the quality and highlight any issue that you may notice.
#6 Check the frames of the doors and windows
Check whether all the doors in the house are sturdy, breakage free and operate smoothly. It is also recommended to check the frames of the windows in the house. Check all areas where glass has been used in the house (balcony, glass partition in the bathroom etc.)-if the hinges that the glass is resting on are sturdy and rust free and the glass is crack free, thick, allows light to pass etc. Finally, look out if the product has an excellent finish.
Check if space is allotted for appliances such as washing machine, dish washer, refrigerator, ACs etc. In the case of a washing machine/ dishwasher, check the water inlet and outlet pipe and see if the slope constructed is fine so that there is no water logging going forward that may result in you having to break the flooring and building again. Also, check if there is a cavity provided for the wardrobe.
#7 Check the amenities that will be provided to you as part of the project
Before zeroing in on a ready-to-move property that has amenities attached, check them out and understand if the price point charged for these amenities are value for money.
#8 Check location and connectivity
Once you have checked inside the house, check the location outside- are basic facilities such as water, electricity, presence of grocery shops, schools, hospitals, banks, garbage disposal, house help etc. available in close vicinity, is the location surroundings clean, is it secure etc. It is a good idea to check with the neighbours who may have moved in the property to know more about how staying here is.
#9 Check legal work
This is an important step that you should be doubly sure of. Check the property’s title, NOC, all approvals in place, OC, approvals from the local body etc.
What can a buyer do if he has concerns after purchasing the ready to move property?
If a buyer has a problem after buying the ready to move property, he may review the terms of the purchase agreement and highlight his concern to the developer. One can also check the warranty to get a solution for his problem. In case the problem is not solved, a buyer can approach the RERA or seek legal advice.
Housing.com POV
Buying a house involves huge finances and thus a great amount of due diligence is required. Do not go only by whatever is mentioned and do a thorough check yourself so that you are happy with the big housing purchase. Do not take hasty decisions when it comes to home buying. Check all the minute details and once you are convinced then only proceed with the buying.
FAQs
Are there any hidden costs when buying a ready-to-move property?
While a buyer may not have to pay GST, he may still have to pay stamp duty, registration fees, maintenance fees etc. while buying a ready-to-move property.
How can I assess the market value of the property?
One can access the market value of the property by taking into factors such as property size, age, amenities, and location.
What are the tax benefits of purchasing a ready-to-move property?
In case of a ready to move property purchase, buyers can claim tax deductions under the Income Tax Act for mortgage interest and principal repayment.
How can I assess the quality of the construction?
For quality construction, look for projects of reputed developers. Also go through the warranties or guarantees on construction and the various fittings and fixtures used.
Should you hire the services of a property inspector before deciding to go for ready to move in construction property?
Yes. It is a good idea to take the services of a property inspector who may identify any defects or faults in the property which may not be seen through the naked eye.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
