Making an Informed Decision: Buying Ready Property vs. Under Construction Property in Mumbai Real Estate
When considering buying a property in Mumbai, it’s important to weigh the advantages and disadvantages of choosing a ready property versus one under construction. In this post, we will delve into the pros and cons to help you make an informed decision that suits your needs.
Let us first look at the disadvantages.
1. Delays in Delivery and Construction Timelines:
One disadvantage of purchasing a property under construction is the possibility of unforeseen delays caused by regulatory approvals, which can disrupt planning for buyers. While reputable developers strive to meet promised timelines, factors beyond their control can contribute to these setbacks.
One disadvantage of purchasing a property under construction is the possibility of unforeseen delays caused by regulatory approvals, which can disrupt planning for buyers. While reputable developers strive to meet promised timelines, factors beyond their control can contribute to these setbacks.
2. Purchasing Based on Marketing Material:
Buyers often get enticed by attractive marketing material designed by developers. However, it’s crucial to exercise caution as it is common for the delivered property to differ from the illustrations shown. Buyers should be prepared for potential changes as developers often have disclaimers that grant them the right to alter the project.
Buyers often get enticed by attractive marketing material designed by developers. However, it’s crucial to exercise caution as it is common for the delivered property to differ from the illustrations shown. Buyers should be prepared for potential changes as developers often have disclaimers that grant them the right to alter the project.
Pro Tip: Drawing on my extensive experience in the industry, I recommend using your logic and common sense, while comparing the marketing material with the reality of the property.
3. Anticipated Appreciation:
Buyers typically expect property rates to appreciate over time. However, it’s important to consider that new infrastructure projects (such as flyovers, roads, and metro lines), which are outlined in development plans, can sometimes adversely affect property rates. It is advisable to seek expert advice or consult professionals who are knowledgeable about upcoming projects and their potential impact on property value.
Buyers typically expect property rates to appreciate over time. However, it’s important to consider that new infrastructure projects (such as flyovers, roads, and metro lines), which are outlined in development plans, can sometimes adversely affect property rates. It is advisable to seek expert advice or consult professionals who are knowledgeable about upcoming projects and their potential impact on property value.
4. Financial Considerations:
Developers are expected to secure the necessary funds for the entire project before commencing construction. However, factors such as inflation in material costs, disproportionate increases in labour expenses, and lack of sales can impact funding and lead to unforeseen delays. Buyers should be aware of potential financial issues that could affect the timely completion of their chosen property.
Developers are expected to secure the necessary funds for the entire project before commencing construction. However, factors such as inflation in material costs, disproportionate increases in labour expenses, and lack of sales can impact funding and lead to unforeseen delays. Buyers should be aware of potential financial issues that could affect the timely completion of their chosen property.
5. Changing Laws:
Another disadvantage of investing in under construction properties is the possibility of changes or modifications in existing laws. Mumbai’s real estate market is dynamic, and laws are altered periodically to align with the city’s needs. Dealing with legal requirements and regulations can be time-consuming and costly, ultimately delaying the possession of the property and causing unnecessary financial stress to the buyers.
Another disadvantage of investing in under construction properties is the possibility of changes or modifications in existing laws. Mumbai’s real estate market is dynamic, and laws are altered periodically to align with the city’s needs. Dealing with legal requirements and regulations can be time-consuming and costly, ultimately delaying the possession of the property and causing unnecessary financial stress to the buyers.
6. No Immediate Income Generation:
Unlike ready properties, under construction properties do not provide immediate income opportunities. Investors are unable to earn from their asset until the construction is complete. On the other hand, ready properties allow for early rental income, providing a potential return on investment right away.
Unlike ready properties, under construction properties do not provide immediate income opportunities. Investors are unable to earn from their asset until the construction is complete. On the other hand, ready properties allow for early rental income, providing a potential return on investment right away.
7. Choice of Project:
Choosing the right under construction project is crucial, as developers may make attractive promises during the marketing phase that they fail to deliver. Conduct thorough research before investing, including checking the background and reputation of developers, verifying the required permissions, and assessing the quality of their completed projects. Neglecting this due diligence could lead to financial losses in the long run.
Choosing the right under construction project is crucial, as developers may make attractive promises during the marketing phase that they fail to deliver. Conduct thorough research before investing, including checking the background and reputation of developers, verifying the required permissions, and assessing the quality of their completed projects. Neglecting this due diligence could lead to financial losses in the long run.
Conclusion:
When deciding whether to buy a ready property or one under construction in the Mumbai Real Estate market, it’s crucial to carefully evaluate the pros and cons. Consider the potential for delays, the reliability of marketing material, the impact of anticipated appreciation, and the financial stability of the developer. By factoring in these considerations, you can make an informed decision that aligns with your goals and expectations.
When deciding whether to buy a ready property or one under construction in the Mumbai Real Estate market, it’s crucial to carefully evaluate the pros and cons. Consider the potential for delays, the reliability of marketing material, the impact of anticipated appreciation, and the financial stability of the developer. By factoring in these considerations, you can make an informed decision that aligns with your goals and expectations.
Stay Updated!
In our upcoming article, we will discuss the advantages of investing in under construction properties in Mumbai real estate. Feel free to share your comments and reviews on this topic, and stay tuned for more valuable insights.
Please do post your comments and questions.
See you next week, with a new topic.
