With the real estate market in a slowdown, is it the ideal time to invest in a ready-to-shift flat, owned by an investor? Here’s what you need to check before buying an investor flat
The Indian real estate market is experiencing a difficult phase. The builders are stuck with huge amounts of unsold inventory and at the risk of delayed delivery or a straight default. With this prevailing situation, home buyers have a good opportunity to purchase property directly from the investors. With the stagnating real estate demand and developers’ oversupply, investors are now ready to offload the properties at a lower profit margin.
Benefits of buying an investor flat
“Buying a home from an investor, is as encouraging as purchasing from a developer directly. For instance, the investor has already verified all the documents and the flat is in a ready-to-move-in condition for the end-user,” explains RK Arora, chairman, Supertech Limited. “However, the customer might have to pay the entire amount upfront to own the property and take the legal proceedings forward,” says Arora.
- No risk of possession delay.
- Government and legal clearances in place, and easy transfer of title.
- Home loan without any problem and no need of a tripartite agreement.
- Existing social and physical infrastructure.
- Investor properties (Delhi, Chennai and metropolitan cities) are easily available.
- An investors’ flat is more expensive as there’s a premium over the prevailing market rate.
- Less room for negotiation.
- Fewer choices as investors have limited inventory to offer.
- No additional offers or festive schemes.
Is the current market appropriate to buy an investor’s flat?
Due to the real estate slump, builders are offering various schemes to attract buyers, but the default risk is very high. In such a situation, a property buyer can look to the investor’s property to cut the risk and get a ready-to-shift-into home.
However, experts suggest those looking for ready-to-move-in flats must consider resale flats from investors. Though the prices may be higher compared to under-constructed homes, they are undoubtedly the safest in the prevailing market conditions.