An international trend of buying only Ready To Move In (RTMI) homes now picks up pace in India
By Prashant Bindal, Sales Head, Lodha Developers
Globally, by 2030, the real estate sector is predicted to reach a market size of US$1 trillion. Closer home in India, the realty segment will likely contribute 13% towards GDP by 2025. In India metros have especially witnessed an exponential growth in demand for residences as well as office spaces. However, stagnant residential pricing experienced over the last couple of years is not a deterrent, especially for buyers with regards to buying a home. The main conflict is whether to invest in a ready-to-move-in property as compared to one which is under construction, with the former being chosen more often than not. The preference for purchasing an RTMI property is mainly because it carries a low to no risk.
Globally, people only buy ready to move in apartments and India, slowly but surely, seems to be catching up with this global trend. By the end of 2020, nearly 2.75 lakh ready-to-move-in houses will be available in the top seven real estate markets of the country. We have listed down some of the benefits of choosing a ready-to-move-in property over under-construction properties.
No delays on possession
Ready-to-move-in flats save you from potential project delays which is the biggest risk in residential real estate construction. It is often seen that at the onset, some developers give an optimistic deadline for completion of the project but they seldom complete it during that time frame. Opting to purchase a property in a completed project protects you from this risk.
Invest and get immediate returns
A ready to move in house can be occupied within a short time of its purchase. This works as an optimal solution for customers who are unable to afford both rent and EMI. With RTMI, whether for end-use or for renting out, you can expedite the process and start reaping returns on your investment from day one.
Assurance of quality
Making decisions on buying an under-construction property based on sample flats are extremely misleading and risky. Buyers are uncertain about space, size of rooms, view from the apartment, quality of construction and available amenities before they take possession. A ready to move in apartment eliminates any such uncertainty as you get to see the original property that you are investing in. It is important to consider the quality of the project and a ready-to-move-in home allows one to closely inspect the structure and quality of finish.
Know your vicinity
It is essential to know your neighbourhood and the available infrastructure around the area such as nearby markets, common public areas, parks and connectivity issues among others when you are intending to move in to your dream home. A building offering amenities, security, a good neighbourhood and social infrastructure within close proximity of your home, tends to work better for buyers. This can be easily ascertained in case of ready to move in homes.
Benefits on GST
You also get a cost advantage as GST does not apply to ready-to-move-in properties. In the case of under-construction properties, developers charge 12% GST with an input tax credit or 5% without it. In the case of affordable housing projects, developers charge either 8% GST with the benefit of input tax credit or 1% without.
Considering the above mentioned benefits, buying a ready-to-move-in apartment is a better route than under-construction when it comes to owning your dream home. No wonder then millions of home buyers worldwide have adopted this route.