if you are in a confusion whether to got for a ready to occupy apartments or under construction apartments, the following write-up will help you. Here are the advantages and disadvantages of both of these options;
Disadvantages of Under Construction Apartments
Delay in the Handover: Over the past 3-4 years, the delay in completion of the residential apartment project has increased in many places. The delay happens owing to dispute on land, incomplete permission from the authority and liquidity crunch. In some cases, the residential developer starts the project construction before they get all the required permissions. Thus, its very important to ensure that you get all the necessary documents from the builder before you buy an apartment.
You don’t Get the Same what you see: Generally on preferring an under-construction apartment, you don’t get what you were promised by the builder at the time of purchase. We decide on buying an apartment by seeing the sample apartment. However, a sample apartment is built with an intention to attract the home buyers. So, sometimes we don’t get the same what is expected. Also, some of the builders change the layout plan or they won’t provide the amenities. Eventually, this situation will make the home buyers to take the apartment without any choice. Therefore, it’s better to avoid oral commitments by the builders.
No Income Tax Benefits till Possession: If you buy an under construction apartment, you will be in a situation to pay the Home loan EMI without tax reduction. Also, it will be frustrating for the home buyers who stay in rented home already, as they have to pay the rent as well as the EMI.
Disadvantages of Ready to Occupy Apartments
More Documentation and Legal Work Required: As the ready to occupy apartment has all transfer documents, it will take a lot of time for legal works and documentation.
Payment in a Single Go: When you buy a ready to move in Apartment, you have to make the payment for registration, down-payment and stamp duty in a single go even if you are taking home loan to buy an apartment.
You may get Deceived: It is advisable to bring in a lawyer while buying a ready to occupy home, as there is a chance of getting deceived. In some cases, the property owners sell the apartment to more than one party. Thus, it’s better to be safe.
High Price Tag: As most of the ready to occupy apartments are located in the prime locations of the city, the price will little expensive when compared to under construction apartments.
Advantages of Under Construction Apartments
Flexible Payment Option: Affordability is the major factor the that grasps the attention of mass section of the society towards these under construction apartments. Also, they can buy a home by paying the down payment (205 as the booking amount) and the rest of the amount can be paid through EMI
Multiple Choice: When you choose to buy an under-construction apartment, you can get more choices in terms of location, floor and types of homes.
Best for Investment: As most of these under construction projects are located in the outskirts of the city, the scope of property appreciation owing to future development will be high. However, it’s very important to research about the future development plans of the particular area before taking a decision.
Advantages of Ready to Occupy Apartments
You will Get What you See: In the case of ready to occupy apartments, you will the same what you see. Thus, the quality, layout design and floor plan will remain the same.
Immediate Rental Returns: If you are a home buyer wants to earn money by renting your home then buying a ready occupy apartment will be an ideal choice.
Income Tax Benefits: You can avail tax benefits while repaying your home loan.