Ready possession homes seem to have more takers presently.
The Real Estate (Regulation and Development) Act (RERA), prohibits builders from advertising their under-construction projects. However, the act allows them to advertise the projects with an Occupancy Certificate (OC) . This has influenced the buyers’ behaviour to a great extent making them opt for ready to move in properties.
Though ready-possession projects cost more than under-construction projects, buyers are now showing a clear preference to ready to purchase properties on an immediate basis This saves them a significant time that would have been otherwise wasted in waiting.
Impact of GST
The implementation of the Goods and Services Tax (GST) has reduced the tax burden on buyers who purchase ready possession properties. The tax on the entire cost of the project including the land is levied at 12 percent. This is sufficient for the builder to claim input credit. This makes the OC ready projects more economical.
On the other hand, selling ready to move in properties is beneficial for developers as it helps them to get rid of their unsold property and get the much needed liquidity to invest in projects that are sought after by the clients.
The home buyer’s Psychology
In the incident of ever-rising price hike, the home buyers are always looking for some relief at least where taxes are concerned as this would make them save some and enjoy the real value for their money. After all, buying a home is a lifetime decision and any kind of savings are welcome by default. If such a ready possession home comes from a trusted group; they welcome it with open arms!