While there are merits in buying an under-construction property in normal times, this may not be the case during an economic recession.

When the economic situation looks uncertain, it is always best to play it safe lest one should regret later on. This applies well with ready to move in flats. 

 Even if it turns out to be a little costlier than purchasing an under-construction property, ready to move in apartments provides the best bet for the smart buyer.

Current Scene in Hyderabad

Though the post-COVID-19 lockdown relaxations have enabled various sectors to open up, things may take time for house construction work to resume full-scale activities following migrant labor exodus from the city.

Advantages of Ready to Move Homes 

Rental Income: 

If one can fund one’s way to buy ready to move in apartments, there is always an option for the investor to ensure the property generates income.

In case of self-financed ready to move in flats in Hyderabad, for instance, one can immediately earn rental income if one does not plan to use the property for personal residence. 

Even in the case of a bank-financed loan to get a ready to move home as a second property without using it for a personal residence, one can still service part of the EMIs through rental income earned through letting out the premises.

This is not possible if one invests in an under-construction property as income generation may take time.

If it is assumed that an under-construction property takes one year time to complete before it is ready for possession, the investment incurred on it provides zero returns that year!

Instead, it would be a contrasting scenario if one were to put his/her money in ready to occupy gated community flats in Hyderabad. This would enable one to save on rental from day one of possession. 

Save on Taxes:

One can avail tax benefits on interest paid to service home loans on the under-construction property. But there is a rider: If the possession of such property is delayed by more than 5 years, the tax benefits don’t apply beyond that.

This is where ready to move in flats fit in as they provide a better opportunity for saving on tax.

Immediacy:

The best part of putting one’s money is ready to move in apartments or villas for that matter is that one can immediately enjoy one’s investment in one's property. 

This is in contrast with the uncertainty one may face in an under-construction property.

No Litigation Hassles:

Unlike in under-construction property, investment in ready to move in apartments is considered safer from litigation. Here, there is no question of a builder delaying handing over possession. Hence, the scope of litigation is minimized.

Avail Low-Interest Loan:

For those with a dream to buy ready to move in flats in Hyderabad, it is a good time given the current dip in house loan interest rates announced by Reserve Bank of India (RBI) in a series of steps.

In fact, the latest media report states that the housing loan interest rates are set to fall to a 15-year low if one were to get bank loan finance now.

Expert Speak:

While favoring investment in ready to occupy property, AS Sivaramakrishnan, Head, Residential Services, India, CBRE South Asia, is quoted in a media report saying, “If finances are not an issue, it is better to invest in ready to move in property.”

By: Prabeer Sikdar