PROPERTY INVESTMENT

Under-construction

Ready-to-move in Property

Under-construction Vs Ready-to-move in Property: Which is better?

Advantages and disadvantages of an under-construction property

Advantages

Disadvantages

Modern Amenities: Under construction properties often come with modern, in-trend amenities or layouts, which otherwise may not be available in ready-to-move properties.

RERA Compliance: Regulatory bodies like the Real Estate Regulatory Authority assures all compliances and building bye-laws are as per safety and market standards.

Flexible Payment Plans: Multiple payment plans improve the accessibility to property purchase and reduce the financial burden.

Customisation Options: Buyers may have the option to customise aspects like interiors, floor plans, and fittings, giving them more control over their future home.

Higher Property Appreciation: The property value of an under-construction unit may increase at the time of its possession, offering better returns on investment in the long run.

Construction Delays: Handover delays or longer waiting period could be a concern when it comes to under-construction properties.

No Immediate Possession: Buyers cannot move in right away and have to wait for the completion of the construction, which could take years.

Risk of Project Failure: What happens if the developer abandons the project due to funding issues? There's always a risk that the project may be stalled or shut down.

Hidden Costs: Developers may levy additional charges in the name of development fees or increased maintenance costs once the project is completed.

GST Charges: Unlike ready-to-move options, under-construction properties attract Goods and Services Tax (GST) charges. This is applicable on top of the mandatory stamp duty and registration charges.

What is Investment Property?

An investment property refers to a real estate property acquired to obtain a return on the investment by rental income, the property's potential resale, or both. The property may be owned by an individual investor, an investment company, or a corporation.

An investment property can be a long-term or short-term investment endeavour. With the latter, investors often engage in flipping, where real estate is purchased, remodelled or renovated, and sold within a short timeframe at a profit.

The term investment property can also be used to describe other properties acquired by an investor in the hopes of future appreciation, such as art, shares, ground, or other collectables.

Benefits to Investment Real Estate

The benefits of investing in real estate are numerous and can vary depending on the goal of the investor. How much money to invest in a real estate property can depend on the investor's risk tolerance. Also, an investor's time horizon is important to consider when making such a large purchase or investment.

Some investors invest in real estate to diversify their money away from the stock market. Other investors want their money invested in physical assets instead of securities, such as equities or bonds. Two of the primary benefits of investing in real estate, both residential and commercial, include,

Types of Investment Properties

Residential: Rental homes are a common way in which investors can add to their profits. An investor who buys a residential property and rents it to tenants will receive monthly rentals. It may include single-family homes, condominiums, condos, townhouses, or other residential structures.

Commercial: Properties which generate income do not always have to be residential. Some investors, especially corporations, buy commercial properties that are explicitly used for business purposes.

Mixed-use: A mixed-use property can be used for both industrial and residential purposes simultaneously.