You open the newspaper and you are bombarded by advertisements stating “exciting offers” for pre-launch, under-construction and ready-to-move flats in Electronic City. You are spoilt for choice and wonder what all the fuss is about. Too much of choice can be very confusing especially when a lot of money is involved. Several factors come into play when choosing amongst the three options, which you will have to take into consideration before you pick a choice. Listed down below are a few criteria to help make a decision.
|
Factor |
Pre-Launch |
Under- construction |
Ready to Move |
|
Price |
This is when you get the lowest possible price coupled with freebies and discounts. |
Price slightly increases at this point, but you get to choose your preferred unit. |
The cost is higher when compared to the other two options. |
|
Quality of Construction |
Grandiose amenities which are promised in the sales brochures may get compromised at the time of completion unless you do a thorough check of the builder’s reputation and their past projects. |
Has the same issue that pre-launch projects have which is why you should always verify the builder’s past projects. |
The best part of a ready-to-move flat in Electronic City or anywhere else is you get what you see. |
|
Capital Appreciation |
This is a better option for those who are not the end-users themselves but see it more as an investment. The contrast in price during this phase and the final possession of the flat is enormous and can give extremely high returns when booked at this stage and then sold off right before the final possession. |
Priced higher than an apartment in the pre-launch stage but cheaper than a ready-to-move apartment. Has a similar advantage as that of pre-launch . |
Best suited for self-occupation and as a long-term investment. |
|
Timeline of Delivery |
Depends on a host of factors that may not always be in the builder’s hands though there are developers like Mahendra homes who are known for their timely delivery of several properties in Electronic City. |
The same is the case with under-construction. |
You are free from the hassle of waiting as you get immediate possession of the flat. |
|
Additional Costs |
All under-construction units that do not fall under affordable housing are charged a GST of 5%. |
Same as that of pre-launch apartments. |
They are free from GST but you would still need to pay for stamp duty and registration which though can be claimed back in the year they are paid. |
|
Choice of flat |
You will be having a wider choice as you get to choose from a wider range of inventory including floor, view, etc. |
The same holds for under-construction as well. |
The choice of flats becomes a little restricted at this stage. |
|
Tax Deductions |
The interest can be claimed in 5 equal investments but the tax deduction is possible only if the construction is finished within 3 years of availing the loan. |
Same as that of pre-launch. |
Under Section 80C of the Income Tax Law, the principle paid towards your home loan is deducted from your income and interest paid is deducted under section 24b. |
So finally, the question of going for a pre-launch, under-construction or that ready to move flat in electronic city it all depends on your financial strength and your needs. Everything has its pros and cons but thankfully, now due to the introduction of the RERA Act, the cons for pre-launch and under-construction have reduced and builders like Mahendra homes take great care to ensure timely delivery of the projects.
