Why home buyers are opting for ready homes
The home buyers are more than being ready to buy properties on the immediate basis rather than waiting for the construction to be completed. There are numerous great reasons for the home buyers to look for properties that are ready to move in or OC ready in present market environment.
The realty sector has certainly gone through the downward phases in years which basically results in the lower new launches, higher unsold inventories as well as rate deduction. The dynamics induced by developers to proffer attractive deals, freebies, and discounts to attract the buyers. Even though the real estate market is slowly recovering, the dynamics are still at the play.
Thus, it makes a sense for property buyers to invest in the ready to move in projects rather than wait for fresh projects to come up over the protected periods of time. While rates are starting to rise again on the back of the gradual recovery of the market, this dynamic is yet in its beginning stages. This certainly makes present time optimal for the buyers as well as the investors to focus on the ready to move in property options.
Cost of rentals
Most of the recent projects will be patronized by the property buyers who make use of the bank loans, implying an important financial burden. Not do the property buyers have to pay the EMIs but also rent on the present homes while awaiting the completion of the project. Paying some extra to acquire the home right now is much cheaper than paying the rentals over longer periods.
The under-construction projects in India are not famous for their completion delays and that certainly leads to the property buyers paying the cost double- EMIs and higher rentals while awaiting the possession of the property. Even though the delayed project delivery is due to various factors plaguing the realty sector, numerous buyers’ financial situations don’t permit them to actually wait beyond the point in time. The EMIs plus the rental expenses take the toll on the property buyers who actually have invested in the under-construction projects that are delayed so decided to invest in the OC ready or ready to move in projects making a lot of sense to them.
Numerous investors buy homes with the objective of earning the rental income with the eye on eventual resale to cash on the appreciation of capital. Buying a property in completed project basically helps them to instantly begin earning out of it through the rentals rather than waiting some years as well as locking the money away in non-income generating projects.
The diminished incidence of dubious developers
The Indian real estate sector is fragmented and there has historically been lot fly by night operators who duped the property buyers of the hard-earned money by collecting the beginning sums and then vanishing into the thin air. With RERA dubious developers or builders will diminish in numbers over the longer term, the strict guidelines will make sure that only genuine and serious players operate in the real estate market. For the time being though, the buyers still believe vulnerable and want assurance that finished the project offered to them.
Numerous new projects are coming on peripheries of prime cities where the supporting infrastructure such as electricity, roads, water connections, etc. are not being developed. Only they promised when the projects are completed but the under-construction projects have to certainly wait much longer for the deployment of the basic infrastructure. This automatically puts off the buyers who want to move into the new homes and begin living life with the decent facilities instead of waiting for these to be provided.
GST implementation has basically resulted in the reduced tax burden on the property buyers buying ready to move in homes. The tax on the complete cost of the project including the land will basically be levied at 12%- this should be enough for the developer to claim input credit, therefore making the OC-ready projects economical for property buyers.