In India, each festive season engenders and realizes many dreams, including the biggest one of them all – buying a house. It is a huge decision to make – immensely rewarding if done right, and disastrous to get wrong – for one invests a good deal of their lifetime and money in paying for it. By and large, consumers have lacked faith in developers to deliver projects on time, and even though this situation is changing for the better with the new set of regulations, they still hesitate to buy under-construction properties, as the financial implications are quite daunting. If you are staying on rent at the time of buying, it is a double whammy – you have to pay for both the EMI and the rent. You also stand to lose out on many of the tax benefits on interest payment towards the housing loan if you do not get possession of the property within five years of availing the loan. For all these reasons, many consumers prefer to purchase ready-to-move-in homes, even though they command a price premium as compared to under-construction properties. And this has its advantages.
You will save on costs
As you can move into your new home immediately on purchase, you do not have to pay for your rented accommodations anymore; this money can instead be apportioned to your EMIs. Moreover, as the home loan is disbursed fully with the registration, you are spared the necessity of paying any pre-EMI interest. And in case you already own a home and are buying another as an investment, you can rent it out and use the money to pay off the EMIs, partly or fully.
You will have easier access to finance
A ready-to-move-in property will have all the necessary clearances, so it will be easier for you to secure a home loan. A pre-approved project will make the bank’s work easier, and your loan will be sanctioned faster.
Newly introduced regulations are helping win consumer trust
The regulatory landscape in the real estate sector is changing for the better. It requires developers to deliver on time and restricts the diversion of money from projects. Even projects that were previously held up are now being completed at a rapid pace. The new Real Estate Regulation and Development Act (RERA) allows developers to advertise only those projects that have Occupation Certificates. These new regulations provide homebuyers with much-needed reassurance, and are increasing their interest in ready-to-move-in properties. Consumers today have quite a wide range of such projects to choose from. All the better, for you can go for one that exactly meets your needs and matches your taste.
You can earn rent on your home from Day One of purchase
If you are one of those who wish to buy a house as an investment, there are some good tidings in the offing. Tata Housing has launched the ‘Move in India’ scheme, under which it assures buyers of rental income for 24 months upon purchase of property in some of its ready-to-move-in projects in the country. Buyers will receive rental income from the very first day of purchase. The collective 24-month rental amount will vary, depending on the scheme, up to a maximum of INR 25 lakhs. The scheme is valid for a limited period, starting 27th August 2017, and applies to seven of Tata Housing’s ready-to-move-in projects: Primanti and Gurgaon Gateway in Gurugam; Amantra in Kalyan region of Mumbai; Prive in Pune; Myst in Kasauli; The Promont in Bengaluru; and Ariana in Bhubaneshwar.
Whether under-construction or ready-to-move-in, the property you decide to buy should suit your financial arrangements, and your personal and familial priorities. Each has its advantages, and whatever disadvantages that may have been are fast disappearing with the robust set of regulations that are now in place. The festive season is here, and homebuyers have more reasons to celebrate than ever before. So, rest your apprehensions and choose well. Happy home buying!