Ready to Occupy Vs Start up Projects : The Wise Decision of Small Investors?"

by Mr. Atul J.Trivedi, 
Rashmi Sri Sairam 
Property developers

As the adage goes there is no right time for property purchase but the right price, one need to choose the right price of their flat be it a ready occupy or an under construction one. Investors / end users must exercise their discretion and take the right decision rather bargaining a lot and compromise with facilities. 

The wise decision of the end user earns them happy and wealth if the move is in a right direction. Still many customers remain undecided on should they opt for a ready to occupy one are choose under construction flat. In the investment point of view, Small investors look for secure investment and good profits and keen on infusing money in Real Estate Industry. 

 Mr. Atul J.Trivedi,  

Rashmi Sri Sairam 

Property developers

Still few have doubts, should they go for Ready to occupy or under construction projects. Both have their own benefits and drawbacks. Majority of the end users prefer to go for ready to occupy homes rather an under construction home / flat. As this fetch them the real happy of having owned a home which is a dream for long? 

But in the investment point of view it earns less and makes the customer spend more.Let us do little comparison on Ready to Occupy Vs Start up Projects

Ready to Occupy: Benefits

• Rental payments are saved
• Years long dream come true
• Risk free from delay point of view

Ready to Occupy: Drawbacks

• Choice of choosing the right flats is less
• Prices are exorbitant
• Interest burden is highest

Start up Projects / Under Construction Projects: benefits

• Prices are at bottom level
• High demand for flats
• Customer can check the flat on regular basis phase wise, small amount of customization is possible
• Investors enjoy price hikes benefits at the end of the projects
• Maximum options available in terms of Sizes, Floors, Facings
• Customer has a chance to reduce the interest burden and debt years, as he can plan to make maximum amount in principal.

Start up Projects / Under Construction Projects: Draw backs

• Risk of projects delay
• Developers may run into financial tussels.
• 
  
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If we compare above points, Start up Projects / Under Construction Projects fetch us more smiles and happy than ready to occupy ones as the flat price will become two to four times at the completion of the project. Only things customer has to take care is,  choosing the right developer matters more for end users. 

One needs to check their track record and expertise of flats delivery. Customers should be smart enough to cross check the builders past projects and their City : State : Nationwide footprint.Any builder when they start a project need financial support; to generate revenues they offer 20% to 25% of the flats on bottom price before construction starts. When the project kick starts they put 25% to 50% flats on offer with 15-20% price hike. 

Remaining flats are sold at 15% to 40% price hike later. Investors, with their rouged experience and awareness about developer’s track record, generally do bulk bookings in the initial stage with bottom price to reap in the profits at the end of the project.

For example

Project                        Booking  Started                   Today

                                    Rate Rs.         Year                Rate Rs.

Sri Sairam Towers    2700                2009                4200

Lake City-I                2900                2013                3600

Rashmi Residency   2700                2013                3050

About the author..!
Mr. Atul J.Trivedi  is CMO at Rashmi Sri Sairam Property developers-Hyderabad

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