Buying a home is a huge investment decision that comes with a lot of financial responsibility and many questions. One conundrum that many buyers grapple with is deciding between the purchase of a ready-to-move-in home or one that is under construction. Given the changing dynamics of the real estate market, ready-to-move-in homes have emerged as the clear winner as it lowers financial risks and the uncertainty of project delays. Here are a few reasons why ready-to-move-in homes are the best choice for potential home-buyers.
1. Immediate access
When buyers choose a home that is under construction, they need to wait a couple of years before they come into possession of the home. They also take on the risk of potential project delays due to insufficient funds or a default on payments. Alternatively, a ready-to-move-in home only involves making the payment, signing a few documents and you’re all set to move in. This helps avoid any financial loss the buyer may have faced from construction delays.
2. Tax benefits
One of the biggest advantages of a ready-to-move-in home is the tax benefits. When a buyer takes out a home loan to pay for the ready-to-move-in home, they are able to claim tax benefits on the amount, in the year they gain possession. This, however, is not the case with under-construction properties where the buyer is unable to avail the tax benefit until they come into possession of the home which could be a couple of years. Additionally, if the project faces any construction delays, the buyer will lose out on property tax benefits during this period as well.
3. Rental income
Another important benefit of a ready-to-move-in home is the rental income. As the buyer who comes into possession of the home, they have the liberty to either move into the home or rent out the property to earn an income. This is usually the case when the buyer has purchased property in a city they don’t live in. The rental income can be used to repay the EMI on a loan that is taken to buy the home. Buyers of under-construction homes don’t have this advantage as they will need to wait for a couple of years before they are able to rent out the completed home. First-time homebuyers who are buying under-construction property will face the financial burden of their existing rent as well as the EMI payments on the home loan.
4. You get what you see
A buyer of a property that is under-construction will have various questions about the size, layout and aesthetics of the home. There is always the risk of discrepancies between the model home and the finished one. This is because model homes always come with the highest quality products that may not resemble the ones in your finished home. Moreover, if you are not pleased with the quality of the lights and fittings, you need to spend money replacing them.
This lack of clarity provides ready-to-move-in homes with a greater edge where what you see is what you get. The buyer knows exactly what is included in the home and can inspect the quality of the fixtures before they make the final decision. Moreover, since the housing unit is completed, the residents can provide information on the infrastructure and the surrounding community.
5. Ready-to-use amenities
Many residential communities today come with amenities such as a swimming pool or a clubhouse. While these facilities are available in ready-to-move-in homes as soon as the buyer gains possession, this is not the case for under-construction properties. It is very unlikely that the amenities included in the community are available at the same time as the house. Hence, even after these property owners are handed the keys to their apartment, it may be a while before the swimming pool and gym are functional. However, the owner of the house needs to bear the maintenance costs of the property even if they are unable to use its facilities. This is not the case for ready-to-move-in homes where the buyer can assess the amenities that exist in the community before they make an investment decision.
The real-estate market is constantly evolving and the potential home-buyer is faced with a lot of risk from rising costs to construction delays. In response to these risks, many buyers are choosing to purchase ready-to-move-in homes over under-construction ones. These homes curb any costs that may arise from delays and provide home-owners with the liberty to move in and renovate the home to their liking. Moreover, the buyer can assess the space and learn more about the surrounding infrastructure before they invest. For the first time home-buyer, a ready-to-move-in home is a sound investment decision. Check out Shriram Properties today to find your dream home!