Invest For Better Return: Real estate has been a preferred investment option for a large section. If invested wisely, real estate can generate tremendous income. After the havoc of Corona, there is a boom in the property market. The demand for houses has increased due to the increase in the desire of people to buy houses. There are also a significant number of people who invest money in real estate in the hope of better returns. However, there is a dilemma in front of people that where is it better to invest money in ready-to-move or under-construction projects for better returns…
This advantage of ready-to-move
Buying ‘ready-to-move-in’ flats makes sense with the derelict buildings and homebuyers performing. Usually such flats are sold in resale, that is, someone bought from the developer and later sold it. The advantage of a ready-to-move house is that you can shift immediately. In this, other charges including GST do not have to be paid. If you have taken a home loan, then you only have to pay EMI.
Old property is available cheaply
The prices of ready-to-move flats depend on factors like location, construction quality, age of the flat and the condition of the property market. On this basis, the price of the property is more or less. One of the reasons why resale properties are cheap is that as a property gets older, its value also decreases. It is obvious that the cost of the same old house will be less as compared to the new house.
The biggest risk of under-construction
As far as under-construction flats are concerned, the biggest risk of such a property is the delay in getting the possession. Usually builders promise to deliver flats in 3-4 years and later delay the delivery. Such cases are full. Data from property consultant Anarock shows that Delhi-NCR alone has 1.65 lakh flats worth Rs 1.18 lakh crore stranded in Noida and Greater Noida. These include housing projects launched in the year 2014 or earlier. At the same time, till May 2022, about 4.8 lakh houses worth Rs 4.48 lakh crore are stuck in 7 major cities of the country. The number of such houses in Delhi-NCR is 2.40 lakh.
take this into account
Under-construction property does not have to be paid in full immediately, but can be paid in installments under the construction linked plan. You can complain in RERA if the developer messes up. Such properties are available at a low price at the time of launch and by the time the construction is completed, the property prices increase due to development in the area. Due to this, there is a lot of appreciation ie better return on investment. Another point in favor of such properties is that now the difference between the prices of under-construction and ready-to-move properties is narrowing. According to a report by Anarock, in the first quarter of the year 2021, the difference between the prices of ready-to-move and under-construction houses was only 3 to 5 percent. In the year 2017, this gap was 9 to 12 percent.
Disclaimer: (The information provided here is for information only. It is important to mention here that investment in real estate market is subject to market risks. Always take expert advice before investing money as an investor. From ABPLive.com It is never advised to invest any money here.)
read this also: Government exchequer may get a shock, revenue collection expected to be less than estimated