When it comes to purchasing a property in North Bengaluru, one of the key decisions you’ll face is whether to invest in an under-construction project or opt for a ready-to-move-in home. Both options have their advantages and potential drawbacks, especially in a rapidly developing area like North Bengaluru. Let’s delve into the specifics.
Under-Construction Properties
Pros:
• Lower Initial Cost: Under-construction properties are generally priced lower than ready-to-move-in homes, often by 10-30%. This makes them an attractive option for buyers looking to maximize their investment.
• Customization Opportunities: Buyers often have the chance to customize aspects of their homes during construction, such as interiors, fittings, and layouts, to better match personal preferences.
• Potential for Appreciation: Since the property is still being developed, there is a higher chance of price appreciation by the time construction is complete, making it a good investment for long-term gains.
• Flexible Payment Plans: Many developers offer staggered payment plans for under-construction properties, allowing buyers more time to arrange financing.
Cons:
• Risk of Delays: Construction delays due to regulatory issues, labor shortages, or financial constraints are common in real estate. Buyers might have to wait longer than expected, adding to financial burdens if they’re paying rent and EMIs simultaneously.
• Uncertainty About the Final Product: While brochures and model flats may paint an ideal picture, the final delivered property might differ from expectations in terms of quality, space, or layout.
• GST Implications: Under-construction properties attract Goods and Services Tax (GST), which adds to the overall cost of the property.
Ready-to-Move-in Properties
Pros:
• Immediate Possession: Buyers can move in as soon as the purchase is complete, eliminating any waiting period associated with construction delays.
• No Risk of Delays: In a ready-to-move-in property, the buyers face no delay or risk of handing over the property because it is an immediate occupancy home.
• Transparency in Quality: Buyers can inspect the property before purchase, ensuring it meets their expectations regarding quality and amenities.
• No GST on Purchase: Ready-to-move-in properties are not subject to GST, which can significantly reduce overall costs compared to under-construction options that incur this tax.
Cons:
• Higher Costs: Ready-to-move properties are often priced higher due to the convenience of immediate possession. The price difference can be significant, especially in prime locations.
• Limited Customization: Since the construction is complete, there’s little room to make changes or customize the interiors as per your preferences, unlike an under-construction property.
• Older Properties May Have Maintenance Issues: While the property is ready for occupancy, if it’s not brand new, there might be some wear and tear or other maintenance issues that need attention, adding to the cost.
North Bengaluru-Specific Considerations
• Rapid Development: North Bengaluru is witnessing rapid infrastructural development, including the expansion of the Kempegowda International Airport, IT hubs, and improved connectivity. This growth can lead to significant appreciation in property values over time.
• Emerging Areas: Areas like Devanahalli, Hebbal, and Yelahanka are becoming increasingly popular due to their proximity to the airport and IT corridors. Investing in under-construction properties in these areas might offer higher returns as the infrastructure develops.
• Established Communities: Localities such as RT Nagar, Sanjaynagar, and Manyata Tech Park are well-established with ready-to-move-in properties. These areas offer immediate possession but might come at a premium price.
Your choice between under-construction and ready-to-move-in properties in North Bengaluru should align with your financial capacity, investment goals, and lifestyle preferences. If you’re looking for lower initial costs and potential for appreciation, under-construction properties in emerging areas might be the way to go. However, if you prefer immediate possession and transparency, ready-to-move-in homes in established localities could be more suitable.
Always conduct thorough due diligence, check RERA approvals, and consult with real estate professionals to make an informed decision.