Ever since covid hit, the demand for ready to move properties have been in heavy demand and the inventory of ready to move builder floors in South Delhi keeps getting sold as soon as they near the finishing/ final stage. You will normally notice that the Top Floors with terraces get sold in booking (even before construction starts) in most buildings as Terraces are in an extremely high demand. But other floors usually stay unsold until the building reaches more advanced stage.
There are various reasons for this. Ever since a GST was announced on under construction properties the buyers got less interested in the under construction properties. There were ways in which GST could be avoided, or sometimes the deal would include the GST or in other cases the buyer would just pay an additional GST if the deal suited him. In this already not pro-under construction properties market, when covid hit, buyers got very uncertain of builders being able to complete their projects as everyone was uncertain about markets, finances and even the lives of people. At the same time came a boost for property and people desiring better and bigger homes. With few ready properties at hand, people had to pay more premium for the ready properties. And so the market is further boosted.
But this GST is not really that big a problem given that the builder can utilise the GST for inputs against his purchases and maybe he can factor in the benefit and give you a better deal. Also waiting for properties to get ready is quite risky as we are at the start of a bull run in property and if one waited the prices would only increase and that would cost more than the GST one was worried about.
Also although the GST is 5%, it can effectively be brought down to 2-3% of total deal value with the help of an expert advisor and with the price advantage one can gain in an under construction deal, one can actually do better buying an under construction floor compared to a ready floor. Now that the Covid related uncertainties are less/ gone I think it is time under construction projects catch up. Also when you don’t have all the funds to pay at this time but want to lock in the rates of today, buying under construction is the only choice, unless you want to pay the rates of 5-10 months from now (higher). Also you get to decide your construction specifications and design as you want.
The paperwork has to be on the ball and accurate keeping in mind today’s scenarios and all safeguards must be taken with the help of a professional lawyer. And as with any investment, there is always an inherent risk, so do assess it based on your experience and help of an expert advisor.
Whatever you do, if you are looking to buy a property in this market, do not wait. Buy something ready or under construction and lock today’s rate. They will be higher when you wait. And don’t forget to check the title.
Let me know if I can be of any help. Reach out to me on 9818968866 or firstname.lastname@example.org.
Cheers, Ashutosh Bhogra