The realty market is in a lull, and home buyers are sceptical about investing in new projects, especially if they are still under construction. Given this stalemate, developers have come up with a new idea to attract buyers: ready-to-move-in homes. Market experts say that several people are now showing an interest in readymade homes, mostly because they want to avoid delays in construction timelines, they want to save on rent and pre-EMI payments, and they want a quality product right upfront. R. Kumar, MD, Navin Housing, says, “In a slow market, people are apprehensive about project completion. They want to save on EMI interest payments. They also have an option to rent out the new flat immediately, which will cover a substantial portion of their EMIs. These factors primarily encourage people to invest in ready-to-move-in apartments.”
This trend is particularly favoured by people looking for immediate possession, since it saves them the burden of indefinite rental payments. Interestingly, a ready-to-move-in house is likely to be costlier by at least 20 per cent. But, as Arun Kumar, MD, Casa Grande, points out, .“When it comes to shifting to a new house, time is the crucial factor. People don’t mind spending extra for a ready home in an ideal location with easy accessibility to offices, schools, colleges, hospitals, etc.”
The other big factor that works in favour of ready-built homes is the fact that the investor gets to see the project before buying. “This makes decision-making easy,” says Arun Kumar. It is the equivalent of the touch-and-feel factor.
Also, in such projects, the chances of getting duped by the developer are almost nil, as the property is thoroughly inspected, and factors such as connectivity, maintenance, interiors, neighbourhood and its future potential have already been taken into consideration. A. Shankar, National Director, JLL, says, “Buying homes that were yet to be constructed or only half constructed has been the most popular option for years, and ready-to-move-in homes were generally considered expensive, at least 25 per cent costlier, but with the changing market outlook, these homes are now becoming popular.”
Maheshwar Ravishankar who has been living in a rented apartment in south Chennai for a long time now, says, “Living in a rented home is not a long-term solution. Some time ago, I decided to buy a readymade home in Medavakkam; It came with its own benefits; other projects take years to complete. It is important to consider the value you get for your money, the builder’s credentials, location, connectivity and supporting infrastructure.”
Who buys a ready-built home mostly? Chandan Jain, MD, Vijay Shanthi Builders, says, “Mostly salaried, first-home buyers are seen purchasing ready-to-move-in flats. As construction schedules go haywire due to scarcity of labour and raw material, and such buyers cannot afford the delays, they opt for them.”
Despite what might seem obvious benefits, buyers need to keep in mind some basic parameters. These include the area’s prevailing prices, the location, legal documents, and building plans. “They must check the credibility of the builder, the quality of construction and built-up area, and ensure that the project has got all clearances and approvals. Most importantly, the investor should look at the market value of the area and gauge the property’s potential appreciation value,” says Kumar of Casa Grande.
In Chennai, the trend is clearly visible on OMR (after the tollgate) and GST Road, and spans localities such as Siruseri, Navalur, Padur, Kelambakkam and Guduvanchery. “There is also a demand for such homes in Medavakkam, Pallikaranai, Perumbakkam, Perungalathur, Tambaram, Pallavaram and Manapakkam. Premium locations such as ECR (mainly for second homes) and the CBD area are mostly restricted to celebrities, NRIs, HNIs, senior-level employees, and professionals,” says Shankar. Apart from Chennai, this trend is now popular in Mumbai, Delhi, and Bangalore.
Regular benefits: No uncertainty about occupying home/ giving it on rent No hassles about construction quality and amenities No pre-EMI loss Income tax benefits: Deduction in interest paid on home loan Principal repayment of home loan not allowed during construction Service tax exemption Source: Vijay Shanthi Builders |
Keep a check on: Proper conveyance of title in favour of the builder The licence/development right/approvals of the builder Clear and marketable title of the project Proper allotment letter/sale agreements on your payments Whether reputed financial companies approve the project. This helps for loans Occupation/completion certificate Ensure conveyance deed is registered after full payment has been made Source: JLL |
