Ready Possession Versus Under-Construction Property Purchase
It is human nature to prefer a finished product. One can apply this truth to various areas in life. We lack the faith to trust that something in the process may be of greater benefit than something we can see in the full glory of completion. This fact is also the basis of many counter-productive real estate purchases.
It is certainly tempting to purchase a residential property that is in a state of total completion. All that needs to be done is the signing of a cheque. The thought of investing in a property that is still under construction clashes with our need for instant gratification.
The above term is a cunningly devised advertising tool that appeals to something we all share – the desire to possess. Instantly. No waiting, no effort involved, just sign the dotted line and show off your acquisition to envious friends and associates the very next day.
By giving in to it, we place ourselves at the mercy of the builder. We are forced to agree with his idea of aesthetics, colour schemes, brand of fittings, layout and his idea of a fair purchase price. Buying a ‘ready possession’ property may make sense if it is required for immediate occupancy, but it is rarely a wise move from the point of view of investment.
This term appears to be a less promising one. It implies a state of incompleteness, which translates into ‘No Instant Gratification’. The desire to ‘possess’ will have to be toned down. You will feel less inclined to invite your friends to view an untidy site strewn with construction rubble… where is the glamour?
This is a classic example of tunnel vision. We fail to see the forest for the trees and do not take the long view. The inherent benefits of investing in an ‘under construction’ property far outweigh those of ‘ready possession’. Let’s look at some of them:
- LOWER RATES
Every builder knows that a home buyer has to exercise restraint and patience while investing in an incomplete property. This knowledge reflects in the property rates the builder quotes. ‘Under construction’ properties cost significantly less than finished ones.
- THE POWER OF CHOICE
With a little vision and imagination, you can see precisely which flat will best suit your needs. In an ‘under construction’ scheme, you will have lots to choose from. Direction of sunlight, best view, ‘Vaastu’ parameters, general ambience and ‘feel’… these are factors you can choose for yourself.
- FLEXIBLE PAYMENT SCHEDULES
A property under development is not an immediately marketable asset. Builders can only hope to dictate inflexible payment schedules in the case of ‘ready possession’ properties. On the other hand, they are invariably open to negotiation at the ‘under construction’ phase. In other words, you can often ask for payment schedule that best suit your needs.
- SCOPE FOR MODIFICATION AND CUSTOMIZING
There isn’t much you can do to change the physical characteristics of a finished flat or shop. The walls are in place, the choice of windows and bathroom fittings has already been made, and no space provisions for that extra Sintex tank may exist. In an ‘under construction’ flat, you can give specific instructions for modification without incurring extra expenses.
- INVESTMENT BENEFITS
Apart from the lower property rates, easier payment terms allow you to plan a more effective investment strategy. Also, the ability to choose specifications helps you to value-add to the property. This translates into better returns on completion.
- PLANNED INTERIOR LAYOUT
You can optimize space and layout for future convenience. For example, lofts and storage space can be included at this stage.
There will still be many circumstances that warrant the purchase a ‘readymade’ property, but consider the above pros and cons before doing so.
Pharande Spaces is the most established and respected construction company in Pradhikaran, the potential-laden boom sector of Pune’s PCMC area. Specialists in quality residential projects, Pharande Spaces also have township properties in the choicest parts of Pimpri-Chinchwad Business District. Two ongoing projects that are generating a huge amount of interest are the integrated townships Woodsville at Moshi and Celestial City at Ravet.