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Residential real estate properties consist are available to buyers in India in two forms- under-construction and ready-to-move-in properties.
The advantage of the under-construction properties is that these are of lower prices compared to the ready-made ones. These also have greater returns on investment because the value of property increases. In addition to these two, here one can make customizable choices.
The disadvantages include delays in the projects, market and regulatory risks and GST levy (any under-construction property is subject to GST, which adds to the overall cost of the property. )
For ready-to-move-in properties, there is no GST included on purchase. These properties have lower risks of delays or cancellations since the projects are complete. Here, the rental income potential for investors is also an advantage.
The disadvantages that move-in-properties pose are the higher purchase cost, Limited Customization Options and the capital appreciation potential.
It all depends on the financial goals of the person and the preparedness to face risks. Both can generate a good amount if properly selected and might be a great investment for the long term.
Compiled by Syed Muskan