There are three kinds of projects that you can choose from when you are looking to buy a property for sale in Mumbai: Pre-Launch, Under-Construction, and Ready-To-Move-In property.
Sometimes, builders announce a project before they even start construction. This is known as a pre-launch project.
- These projects can prove to be a viable investment avenue, but only if the builder is reliable and has a successful past record.
- You can get early-bird discounts of up to 20% of the property cost with projects in this category, which is a way for builders to get enough people interested in the project to move ahead with construction.
- However, pre-launch projects have the highest risk when compared to the other two types, since there’s no date set for construction or project completion.
- The status of approvals and project or units plans are usually unavailable since the builder is in the process of finalizing these details.
The second type of residential project is one that is still under-construction.
- Under-construction projects offer you the chance to gather enough funds to pay in instalments.
- By the time construction is completed, property rates might have gone up, so your home may already be worth more than what you paid for it.
- You are getting in early when it is an under-construction project. There are multiple options to choose from, so you will get the floor and apartment that you want.
- Since your home is still under-construction, you can ask the builder to incorporate some customizations, but only to an extent, and if the builder allows it.
- However, there is always a risk involved when you invest in incomplete properties. The builder may face financial troubles or other roadblocks that could cause a delay in construction.
- The project may go through some structural changes during the construction period, and the final plans might be completely different from the original plan.
- If you currently live in a rented house, the EMI for the property purchase and the rent you are already paying can be too much to handle.
- You have cost advantage if you go for under construction project. Eg. Cost of flats for sale in Mumbai in under construction project are 10-15% cheaper then ready to move in flats.
With a ready-to-move-in project, you get instant ownership of your apartment.
- There is minimal risk involved with this kind of property, since most of the construction and other legal formalities have been taken care of.
- Builders are known to exaggerate the finished product to close the deal, but with a ready-to-move-in project you get exactly what you see.
- You are not charged a service tax and VAT for ready-to-move-in projects, unlike under-construction projects, where a service tax of 14% on 25% is charged.
- In most cases, you will have to arrange for almost the full cost of the property at one shot.
- It will also be difficult to get the floor and apartment you want, since there are fewer options available at this stage.
- Ready-to-move-in projects are more expensive than under-construction and pre-launch ones, with a cost differential that can be as high as 15 lakhs or even more.
- There is very limited scope for customization within the apartment or unit in ready-to-move-in projects.
Now that you have a better understanding of each type of project, you can choose the right kind based on your requirements and find a House for sale in Mumbai that perfectly suits YOU.