Under-construction/Ready-to-move/Resale property: Which should you choose?

Home buyers normally put money on a property, based on the assessment of risk-to-reward ratio. For an end-user, the main focus while buying a home, may be low risk, good quality of construction and timely possession, whereas, investors also look for high ROI.
Comparison chart Under-construction home Buying a home in an under-construction project, is one of the most popular options exercised by potential home buyers.
“It is no secret that home buyers can save up to 30% of the cost of a property, by investing at the pre-launch stage of a project. This is, in fact, the most popular mode of investment among property buyers. However, this is a riskier method of property investment, as one is investing in a product that is yet to be manufactured,” points out Arvind Jain, managing director, Pride Group.
Ready-to-move-in apartments In the case of ready-to-move apartments, home buyers may need to make the entire payment in a short period of time. Unlike an under-construction property, buyers need not wait to get possession in ready-to-move apartments. However, buyers in the category are lesser than those who opt for under-construction houses.
See also: Tax benefits: Ready-to-occupy scores over under-construction property
“A ready-to-move-in flat is ideal, for those who buy their first property. Customers have to make a big investment in the ready-to-move-in home, compared to an under-construction home. The higher price also makes these less attractive, vis-à-vis return on investment (ROI). On the other hand, a ready-to-move-in property may help customers to save on the rental payment on their current accommodation,” explains RK Arora, chairman of Supertech Limited.
Those who are averse to any kind of risk, prefer to buy ready-to-move flats. However, there have also been cases where authorities have demolished buildings for illegal construction, after its completion.
Resale homes Buying from the resale market, is yet another option for home buyers.
“Homes in this category cost about 15%-20% lesser than existing ready-to-move-in homes. However, this kind of deal is beneficial, only when the project’s construction quality is good. The age of the building is also crucial in this type of purchase,” elaborates Shailesh Puranik, MD of Puranik Builders Pvt Ltd. For resale properties, one must examine all the facts, including hidden encumbrances and legal clearances before taking a plunge, suggest experts.
A buyer should select the property (whether it is under-construction, or ready-to-move-in, or resale), depending on one’s individual needs, maintains DS Kulkarni, CMD of DS Kulkarni Developers Ltd. “If it is an under-construction house, the buyer must check whether the builder has delivered as per commitment on his earlier projects, or as per the specifications mentioned in the information brochure while booking,” he advises.
By: Housing.com/news