Buying A Flat? Things That Your Real Estate Agent Won't Tell You

Summary

In this video, Samarth Tandon and Nishant discuss the pros and cons of buying ready-to-move-in versus under-construction properties in Bangalore. They highlight transparency, reduced risk of delays, and immediate possession as key benefits of ready-to-move-in flats. Under-construction properties can offer cost savings and customization options but come with longer waiting periods and potential for delays. The video advises considering factors like builder reputation, construction stage, and financial planning when making a decision, emphasizing the importance of due diligence and quality checks.

Takeaways

• 🏡 Ready-to-move-in flats are generally the best option due to transparency; you can see exactly what you're getting.
• 🌆 Transparency in ready-to-move-in properties allows buyers to avoid potential issues like delays or not getting possession.
• 💰 Post-pandemic, the price gap between under-construction and ready-to-move-in properties has narrowed to 3-5%.
• 🔍 Under-construction properties can offer cost benefits, but buyers should be aware of additional charges like Clubhouse fees or premium for features like sunlight or higher floors.
• 📈 The price advantage of under-construction properties has reduced, making ready-to-move-in flats more attractive.
• 💼 Under-construction properties allow buyers time to plan their finances, which can be beneficial for those who need time to save.
• 🛠 Customization is possible with under-construction properties, which might come at a slight premium but could be worth it for specific needs.
• 🏢 It's crucial to choose an A-Class builder for quality and peace of mind, even if it means paying a slight premium.
• 📑 For resale properties, ensure all documents like the mother deed, resale agreement, and encumbrance certificate are in order, and check for pending dues.
• 🔍 When buying a resale flat, consider the property's age and compare prices with the local real estate market to avoid overpaying due to emotional attachment.

Q & A

What are the advantages of ready-to-move-in flats over under-construction properties?

Ready-to-move-in flats offer transparency, as what you see is what you get. They also provide peace of mind by avoiding delays and issues related to property possession that are common with under-construction properties.

Why might the price gap between ready-to-move-in and under-construction properties have reduced post-pandemic?

Due to decreased demand during the pandemic, builders have a backlog of unsold flats, leading to a reduction in the price gap as sellers have to sell at lower rates to compete with new constructions.

What are the additional costs associated with buying a resale property?

Apart from the cost of the house, buying a resale property involves registration costs and TDS charges. However, the pricing is usually upfront with no hidden charges.

How does the customization option differ between ready-to-move-in and under-construction properties?

Under-construction properties allow for some customization, such as adjusting for vastu, sunlight, or ventilation preferences, which might come at a slight premium but can be worth it for getting exactly what you want.

What are the financial implications of buying an under-construction property with a long waiting period?

A long waiting period can lead to additional costs such as rent and increased interest payments on loans, which can add up to a significant portion of the base price of the house.

What are the different EMI payment options for under-construction properties, and which is considered the best?

There are three options: start EMI after possession, start EMI with the principal component after possession, or start complete EMI from the date of disbursement. The third option is considered the best as it results in paying the least amount of interest over the loan tenure.

How does GST apply to ready-to-move-in and under-construction properties?

GST does not apply to ready-to-move-in properties, but for under-construction properties, a 5% GST rate is applicable on the base price, payable either on completion or occupation, whichever is earlier.

What is the role of RERA in resolving disputes related to property purchases?

RERA resolves disputes related to delays or costs in under-construction properties but does not cover ready-to-move-in properties. It can impose penalties on builders for delays or imprisonment for non-compliance.

What are the key documents to check when buying a resale property?

Key documents include the mother deed, resale agreement, encumbrance certificate, and ensuring no pending dues on society charges, maintenance, or other property-related charges.

Why is it beneficial to buy from an A-Class builder even if it costs slightly more?

A-Class builders, despite charging a premium, offer a proven track record and quality, which is beneficial in the long run for asset appreciation and peace of mind.

What are the considerations for buying a property in an advanced stage of construction?

It's advisable to buy a property in the second or third stage of construction to see the progress and assess potential delays, rather than at the very beginning of construction.