Once bitten always shy; this is the case of majority of the homebuyers who after waiting for ages for possession of their homes are still in the queue. Buyers of residences are now more than keen on purchasing homes they can move into without delay, rather than wait for it to be constructed.
Here are their valid reasons to look for properties that are ready-to-shift-in:
- The last few years have seen the real estate sector go through its worse phases, affecting a steep fall in new projects, lowest price tags and increased number of unsold inventories. This kinetics forced developers to offer very tempting deals, discounts and lot of freebies to draw buyers. Although the market is now on a slow recovery phase, these dynamics are still dominant. This makes sense for buyers to go for ready-to-possess projects instead of waiting for ages for a new project to complete and deliver. As prices start going upwards again with the market making a comeback, this dynamic is still hanging around.
- With buyers playing patrons for majority of these projects through bank loans, they will be heaving a compelling financial liability. In addition to EMIs, buyers also have to pay the rent of their current residences as they wait for the project to complete. Adding a bit to the bargain to buy a home and move in promptly is cheaper than paying rents across the board.
- Delayed projects cause buyers to pay double their cost in the form of EMIs and high rents. At times, delays happen due to legitimate factors afflicting the real estate sector, but many buyers’ financial state of affairs make it impossible for them to wait beyond a point of time. So, the decision to go for ready-to-move-in or OC-ready projects is much more convenient.
- Often homes are bought to earn a rental income, to sell them again for a high profit. A readymade flat trigger the inflow of rent immediately instead of waiting for a few years and freezing money in hibernating projects.
- Disintegration still persists within India’s real estate sector punctuated by many fugitive developers who deceived buyers of their laboured earnings by vanishing into thin air with huge down payments. RERA is expected to pulverize such dubious developers through a period of time. Its stringent laws will allow only genuine players to thrive in the market. Ad interim, buyers still feel the vulnerability as they wait for their projects to deliver.
- A number of upcoming projects are in geographies with underdeveloped infrastructure such as roads, electricity, water connections. Their completion is committed only after completion of the projects within their vicinity. However, delayed projects also consequently result in delayed infrastructures. This is one big reason that naturally defers buyers, who want to live in homes with decent facilities rather than stay on hold ad infinitum.
- GST has hacked the tax liability on buyers going for ready-to-move-in flats. The tax on the overall cost of the project, inclusive of everything, stays at 12%. This suffices for the developer to claim input credit, thus making OC-ready projects more affordable for buyers.