Consumers Get Incentive to Purchase Readymade Property in Pune
It would appear that homebuyers in Pune, for several reasons, may be shifting their preferences when it comes to purchasing property in Pune. Although there is no shortage of ongoing residential projects in Pune, a slight change in trends indicates that the cities homebuyers are keener, it seems, to purchase properties which have already been constructed rather than buying ones currently under construction. This change in the homebuyer preference may be so significant as to be leading to an appreciation in the price of readymade 2 and 3 BHK flats in Pune due to greater demand for such property in the city.
There are various good reasons for homebuyers in the city to do what some believe they are doing. For instance there are multiple tax savings when an individual opts to buy a readymade property in Pune as opposed to one that has not yet been completed. One reason for these tax savings may accrue from the supply side as builders in Pune are negating the need for service tax as well as VAT in an attempt to sell greater numbers of readymade flats in the city.
Despite the higher cost of readymade properties as opposed to ones which have already been completed, consumers in the city it seems are willing to pay a higher cost for the lower risk. The advantages of buying a readymade property in Pune and all other cities is far lower risk and uncertainty, often the main reason that readymade properties are priced higher than completed ones. However with this lower risk and higher cost are additional hidden opportunity benefits such as the ability to shift into the purchased readymade real estate in Pune at very short notice rather than to wait for an upcoming project to be completed while living in another flat, paying rent, and simultaneously paying an EMI for the flat under construction.
At the same time as such a preference among the residents of the city to purchase ready to move in properties increases, the value of such property in Pune too is appreciating. Over time if such trends continue, it may lead to lower costs for flats in Pune that are under construction, saving homeowners who buy such flats money.
The current interplay between demand and supply in the city pertaining to the two similar yet distinct markets of ready to move in properties and upcoming residential projects in Pune is likely to result in, over time, an appreciation in the price of the former and depreciation in the price of the latter. As homebuyers in the city seek to minimize risk rather than to save expenses, there is a likelihood that the price of existing flats in Pune will appreciate while those of new projects in the city will likely either remain stagnant or even drop.
This new interplay between the supply and demand dynamics is to some extent being promoted by builders in Pune, who are deliberately coveting the homebuyer in an attempt to sell readymade projects in the city. By waving off taxes such VAT and Service Tax, some builders are offering homebuyers the opportunity to save up to 10 percent when purchasing a new property in Pune. Furthermore consumer awareness regarding a provision that completed projects may not ask for VAT as well as service tax may be another catalyst leading them to purchase readymade properties as opposed to ones still under construction.
