The residential Real Estate Buyer seems to be haunted with “THE BIG QUESTION “…
Every home buyer is in a state of confusion to take a decision on buying a Ready To Move in property v/s a Property Under Construction. There has been a host of default and delays in the last few years for which the customer is reluctant in buying an under-construction property because of that sometimes he lands up in compromising his selection on Ready To Move in a property. Let us evaluate both the condition in details today so you could make an informed decision.
What should the BUYER do? How should he evaluate whether he should buy RTM or Under Construction property?
So here I am trying and discussing both separately with pros and cons, goods and bad of RTM and Under Construction property, so that decision making can be beneficial.
I am considering that the decision of buying a home is taken and we are beginning our search…
Pros of buying an RTM apartment v/s Under Construction (labelled as UC):
1. Location of the RTM is established hence it suits the choice. The situation is the same for UC apartment.
2. The infrastructure of the development can be inspected and audited.
3. In RTM apartment Social Infrastructure around the development like Schools, Hospitals, Commercial Establishments, Business Offices, etc. can be checked
4. Touch and Feel of the apartment are possible. The quality of the material used viz Tiles, Sanitary fittings (Taps, Wash Basin, WC, Counter), Kitchen Slab and Sink, Electrical Switches, Paint and Polish, Doors and Handles, Balcony Grills and Finally the Facing of the apartment is all determined and can be audited if it suits the choice.
5. Facility Maintenance or Complex maintenance can be checked and felt.
6. Quality of Security Guards and Quality of Maintenance Staff can be assessed.
7. Most importantly RTM comes with an established neighbourhood. You can always check the profile of the people residing in the community
8. Cost of living of the said area can be understood and evaluated whether it fits the budget or not
9. You pay EMI alone and not EMI and RENT.
Cons of buying an RTM property while Pros of buying an Under-Construction property:
1. Any location which has RTM apartments available would be at least 5-10 years old hence chances of upliftment and modernization of that area not possible. The Location of the UC apartment comes with the latest infrastructure and scope of modernization.
2. The new areas come with modern Social Infrastructure like new schools, hospitals, transportation facilities, commercial and retail establishments, etc
3. For RTM apartment complete payment is to be made in one go. In UC apartment you pay as per construction linked payment plan. You can plan your finances better.
4. The possibility of appreciation even if it is inflationary is lost when you buy RTM apartment as the cost at which you buy has built that in. In UC property there are good chances that if the product is good and the location is bound to be prime in times to come the property prices will move up and hence will also make your apartment investment worthwhile
5. Under construction property can also be used as a saving instrument, you can invest a portion of your earnings over a period of time and build a corpus.
6. In UC property the chances of finding an apartment of your choice are very high. While in RTM property you have to compromise with the location of the unit. Remember you have to live in this property for many years hence the location is super important. This becomes a major deciding factor between RTM and UC.
7. With new technology better consultants the apartment is becoming more and more efficient. You can buy compact 2-bedroom apartments in 900-1000 sq. ft and 3 bedrooms in 1300-1400 sq. ft. Similar units were made in 2-bedrooms: 1100 sq. ft and 3-bedrooms: 1800 sq. ft. which considering a price of Rs 5000 / sq. ft translated into extra spend of Rs 10 Lacs in 2 bedroom and Rs 20 Lacs in 3 bedrooms.
No point buying a 2 bedroom in 1100 sq. ft when it can be done in 900 sq. ft and 3 bedrooms in 1800 sq. ft when it can be done in 1400 sq. ft.
8. With times new and better construction materials come into the market which is more durable and have better finish.
9. With RERA and other compliances and checks set by the govt UC property translates into a great opportunity
The govt has promised to spend an additional Rs 100 Lac crore on infrastructure in the next 5 years.
We will see more highways, metro, fast trains, seaways and ports and also airports come up in the next couple of years. Under Construction properties under the Modern New India will give us opportunities to find our Home Nest in developments which give an international feel. Friends you can evaluate both cases and take a calculated decision. Now when you are ready to buy a home watch this video before, and understand if this is a right time: