The Covid-19 pandemic has compelled home-buyers to re-evaluate their priorities and how they want their space with people spending more time at home and a definite shift in end-user preference, many home buyers are looking for properties with amenities like club house with recreational activities, swimming pools, gardens and gyms while some are looking for bigger accommodations.
The stay-at-home factor has made people appreciate and realize the value of owning a house rather than living on rent. Also the new normal of owning an office space at home has also surged the demand for buying own properties among middle-income and upper-middle-income groups.
Nevertheless, when it comes to purchasing a home in Kalyan and Ambernath, should prospective buyers opt for ready-to-move-in apartments or houses that are under construction?
Let’s take a look at some of the key factors of both these segments, that can further help home-buyers in making the right decision based on their preferences
1. Price and Payment Structure:
One of the key reasons behind home buyers opting for under construction properties in Kalyan and Ambernath is the availability of a convenient payment option.
Since the apartment is under construction, buyer will have the choice to make payments via construction linked plans (the payment will be proportional to the construction progress of the project). This provides buyers with the flexibility to arrange their finances accordingly.
However with ready to move in homes, home buyers are required to pay the entire amount during their purchase although this does save them from the burden of paying rent, had they been staying in another rented accommodation in the case of an under construction booking.
Also If all other factors such as location, area, property type are the same, a ready-to-move apartment typically costs more than an under-construction one.
Prospective home buyers don’t have to pay the entire amount at the time of booking TCJ Realty’s Arya, an under construction project in Godrej Hill, Kalyan West offering 1 BHK Apartments. The buyers will only be required to pay the amount proportionate to the construction progress of Arya.
2. Availability and Certainty:
One of the prime advantages of a ready to move in apartment in Kalyan and Ambernath is there’s no waiting period. The buyer just has to make the payment, go through with the documentation and just move in.
Buyers who bought 2 BHK and 3 BHK apartments in King’s Court, one of the best ready to move in projects in Kalyan West, immediately got the possession of their booked apartment after completing their documentation and payment formalities.
Regarding the under construction flats, there’s uncertainty on whether the home buyer will get the apartment on time, along with other things being provided as promised. Owing to the increasing cases of delays pertaining to construction timelines by developers due to reasons such as funding crunch, rise in cost of construction materials and increase in lending rates, many buyers believe that purchasing an under construction apartment is too risky.
The money paid by the homebuyer at the time of booking, stamp duty and registration charges, down payment, and other levies are at risk if the developer is unable to finish the project within the proposed timelines. As per May 2022 report by one of the India’s leading real estate consultant, construction work of nearly 4.8 lakh homes worth 4.5 lakh crores were stuck or significantly delayed across 7 major cities in India.
3. You get what you see
In case of a ready to move in apartment, the buyer gets exactly what he/she has seen and paid for. The buyer gets the real experience of quality of the final product. This is because of the Occupancy Certificate (OC) accorded to the project.
It provides the information to the buyer that property is built according to the approved plans and by- laws of the government and the local municipal body. It adheres to the building code of conduct and information about basic amenities.
The home buyer gets access to an additional sense of security as it provides him the opportunity to not only check the vicinity of his house but also socialise with the neighbourhood before making the decision.
Home buyers who booked their homes in TCJ Realty’s Kings Court after the project received its completion certificate, were shown the actual apartments on any of 17 floors they wanted to look at along with the show flat, which was designed in a manner to provide a better understanding of the space planning and how their actual house would look like.
Unlike in an under construction project, there’s no discrepancies with the promised layout, features and amenities among the other important things. One of the common glitches associated with under construction properties include the peril of not getting the promised product during possession. Usual incongruities include lesser usable area than promised, changed layout and deficient amenities.
However these issues can now put the developer in trouble as all the information from the start of the project is also provided to RERA (Real Estate Regulatory Authority)
4. Tax implication
GST at the rate of 1% for affordable housing and 5% for non-affordable housing is applicable to home buyers for under construction projects.
Few apartments in Arya by TCJ Realty fall under the ‘affordable housing’ category and hence, GST at the rate of only 1% is appliable to the prospective home buyers.
However, Ready to move in properties are exempt of GST. E.g. King’s Court in Kalyan West
5. RERA Compliance
Under construction projects, as on or after 1st May, 2017 are mandated to be registered under their State’s RERA. Hence, they become liable to comply to fair trade practices. Buyers can avail information regarding their shortlisted properties on their respective State’s RERA website, where they can obtain all the documents and information of the project provided by the developer.
RERA, being a home buyer friendly act aims to protect the home buyers from any discrepancies or risk of their financial investments in under construction projects by offering speedy grievance redressal services to the aggrieved home buyers.
TCJ Realty’s Ira in Godrej Hill, Kalyan West is registered under Maha RERA under Registration Number P51700010368.
Prospective home buyers, with the reference of the above mentioned registration number, can obtain all the necessary details from the Maharashtra State RERA Website.
However, old ready units with Occupation Certificate as on or before 1st May, 2016 are not mandated to be included under RERA. This doesn’t make the promotor liable to make its project information available on RERA and hence, home buyers cannot take help from RERA for any grievances in these cases.
