Buying A Flat? Things That Your Real Estate Agent Won't Tell You

okay should I go for a new flat or should I go for a ready to move in flat or should I go for a flat which is already owned by somebody else which I like in almost 90 percent of cases ready to move in houses are undoubtedly the best option why is this so and which are the 10 cases where under construction comes out as a clear winner [Music] hi I'm samarth Tandon Investments lead at win 12 and I'm Nishant Chief compliance and legal officer at win 12th one of the biggest advantages of ready to move in Flats over under construction properties is transparency what I mean by that is in ready to move in Flags what you see is exactly what you get so I can easily say that last three to four years I've been doing window shopping of where to buy a house in Bangalore which kind of house to buy so we prefer ready to move in the direct Advantage which I see with ready to move in that the flat is ready we have been you know reading and hearing so many rumors and there's a lot of delays that happen sometimes they even flat people don't get possession of their flat So to avoid all that and having a very good peace of mind we thought okay ready to move in is good and when you see the the model houses all the pictures the builders they show they show a very Rosy pictures like around they will not show you know how the property is looking if nearby there is a garbage dump they will not show you that in the in the model houses so it's very difficult to actually visualize okay in 16th floor in 10th floor you know what your house is going to be what kind of view you're going to get in ready to move in property at least that part is sorted out usually under construction properties of the Tier 1 cities are typically 10 to 12 percent cheaper than ready to move in houses but this trend has changed since the pandemic over the past two years the price gap between the two has reduced to as low as three to five percent only because the demand for the flats decrease so much during the pandemic the builders have huge backlog of unsold Flats now suppose if I want to buy a flat why would I buy a 2-3 year old flat which is ready to move in when I can get a new flat for the same price so the sellers have no option but to sell these Flats at lower rates which from a buyer's perspective is a great deal so apart from cost of the house if you're buying a resale property you have to think about the registration cost and then there is a TDS charges also resale is less complicated I will say because the people who ask for the pricing it's upfront cost there is no hidden charges there if you buy a house which is ready the registration is not yet done so there will be a lot of investors who will invest in big properties and then once the house the Builder will approach them for registration they would tend to sell those houses and if they are those are investors you tend to get a better rates also so The Sweet Spot is to approach at that time now that we see that the price Advantage has reduced considerably why would anyone buy a under construction property an under construction property will give you some time to plan your finances until you get possession of that property so the ideal property there will be a mi of 80 000 right now I am not able to afford 80 000 Emi I'm okay with under development and in coming to three years I am able to fill the Gap without compromising My Lifestyle another major advantage is that in this you have a little room for customization say for example your particular word vastu or that you want sunlight or ventilation to be in a particular way now this customization might come at a slight premium but if you're getting exactly what you want the payoff might be worth it but when you go for a new construction then there are a lot of charges which sometimes are under the sheets nowadays if you reach out to the top Builders they will upfront share with you saying that this is the basic cost of the property and then the other things like Clubhouse charges parking charges sometimes they will say premium charges like you know where the sun is coming to the balcony they will charge extra for that if it's a Corner House they'll charge it's extra for that the more a higher floor you go you have to pay premium for that in a ready to move in flat all these costs you will have to pay in a short span of time probably within a few weeks but in an under construction property the a cost spread over a few years of course there are a few other costs involved in both the cases which we'll get to later in the video but according to me one of the major disadvantages of under construction Flats is the waiting period if the difference between the booking time and The Possession time is close to two years you will have to live somewhere for that period and when you will have to live somewhere you will have to end up paying rent assume that the rent you are paying is around 30 000 per month when you add all of that it roughly comes to 10 to 15 of the base price of the house you're buying and that is not all your emis will also add up that means you'll have to pay more interest to the bank when you buy a ready to move-in property the process is pretty much straightforward and the emis kick in the moment registration gets completed but loans for under construction properties are a bit different and have three options option one you can start the payment of your Emi after possession option two you can start the payment of PMI till possession option 3 which is the best in my opinion that you can start the payment of complete Emi from the date of disbursement in First Option you don't pay anything till possession in second option you and thereafter the principal component kicks in along with interest in the third option both principal and interest payment is being made from the date of disbursement out of the three options for the entire loan tenure you end up paying the least amount of interest in option 3. tax on your purchase also differs depending on which kind of property you are buying if you're buying a ready to move in flat then you do not have to worry about GST at all because it does not apply but if you are buying an under construction property a GST rate of 5 will be applicable on the base price which you will have to pay either on the completion of the property or when you occupy the house whichever happens earlier and then there is also the risk of possession being delayed which is more common than you can imagine this might result in higher payout for you always check for something called an escalation Clause before signing your agreement this gives the Builder the right to charge you some extra amounts if certain conditions are made now if these conditions are left vague it can cause a huge problem for you in the future if there are any conflicts relating to delays or costs then Vera is the right body which resolves these issues however one very important point to note is that rera does not cover ready to move in flux only issues which are within under construction Flats can be administered or resolved by Rara as per the laws if the Builder delays possession due he can be fined with a penalty of up to 10 percent of the base price or he can also be imprisoned for up to 3 years also if you as a buyer are defaulting in payments to the builder then you also can be fined a 10 monetary penalty amount you can check the buying guide linked below for more information on Rara and also the steps you can follow to raise a complaint with them however I would advise you to not completely rely on this the best way is to ensure that you are doing all your proper due diligence checks to foolproof your purchase so I went through the document checklist that included the mother deed resale D resale agreement which is between the owner and the Constructor of this particular property and of course in Bangalore there is something called as Kata wherein they say you have two types and of course people prefer buying Flats which has a Qatar and of course the encumbrance certificate if you're purchasing resale Flags make sure that the previous owner has no pending dues in terms of society charges maintenance charges electricity bills or any other such charges related to the property this problem can be purely eliminated by you insisting the previous owner to give you a non-income certificate along with the other documents which will give you assurance that there are no such pending dues on the property you purchase whether you decide to buy a ready to move in-house or an under construction property it's always better to go for an A-Class Builder even though they might charge you a slight premium but the extra cost is worth their proven track record and the quality they provide I also bought this ready to move in-house around six months back we were actually staying in the same society as a tenant we are living there in a society you know what are the pros and cons and accordingly you can take a call Society living benefits that you have similar age groups swimming classes tennis then karate there's so many options which you can do especially is safe we did look for around eight houses in the same society and outside as well and finally we ended up buying this flat and from my experience I am telling you that when you visit a resale flat you should always check the age of the property and then compare the prices with the general real estate prices in that area or Society in particular lot of times owners end up quoting a much higher price why is that because of their emotional attachment to that house this this particular flat which which I've got I it costed me around 48 lakhs plus one lakh one and a half lakh of registration fee so that that was well within 50 lakhs I was living here for about three and a half years so I kind of knew uh how this flat was so I did have one of my friend to come into inspect the flat and let me know how good the flat is so this apartment of course was 15 year old apartment but it's it's very strongly built because what happened is when when I renovated the flat what I understood from my friend who helped me in renovating is when they hit any particular nail the nail doesn't go through that easily inside the walls when buying a completed property resale or New Quality checks become excessively easy you're not just making assumptions based on the quality of the plans or raw materials but you can judge the quality based on the actual finished product in front of you make sure you check every single thing from the walls and tiles to plumbing and wiring before finalizing a house especially in case of resale if you don't want to check everything by yourself you can also hire Professional Services to do these checks for you and I had spent close to about 5 lakhs for me to renovate this because this is a 15 year old flat to buy a new flat which would cost me about 75 to 80 lakh why not I use this opportunity because this flat suited all my needs and all that I needed was just to have a little bit of renovation done and that's what I went ahead with as well so basically in most cases ready to move in is the best option it's convenient and better decision financially now which are the cases where under construction becomes the better option the first as we already discussed before is that if you're very particular about my new details of the house and you want to customize it or if your financial capacity is less and under construction property will give you some time to plan your finances until you get possession of that property in any case going for a good Builder is extremely important another thing to consider is at what stage of construction you are buying it at ideally you don't want to buy a house in a building that has just begun construction even though it will be a little bit cheaper if it is in second or third stage of construction you will get to see the progress and also understand whether the work is happening on time or there could be delays all that my my dad used to say is invest in assets which would appreciate over time it's going to be a good asset for me not just for me but also for my next upcoming generation we hope this video helps you zero in on the perfect home for you and your family and if you're planning to buy a house in Bangalore here is another video that might be helpful

Channel: Wint Wealth

Views: 430,540

Keywords: flat buying, real estate, Bengaluru flat

Id: aDwNj4NPxi0

Length: 12min 13sec (733 seconds)

Published: Fri Dec 16 2022