Pros of buying RTM apartment v/s UC property:
- The location of the RTM is established. Therefore, it suits the choice. This is also true for UC apartments.
- The infrastructure of the development can be inspected and audited.
- In RTM apartments, the social infrastructure around the development like schools, hospitals, commercial establishments, business offices, etc. can be evaluated.
- Touch and Feel of the apartment are possible. The quality of the material used viz tiles, sanitary fittings (taps, washbasin, WC, counter), kitchen slab and sink, electrical switches, paint and polish, doors and handles, balcony grills and finally the facing of the apartment is all predetermined and can be audited if it suits the choice.
- Facility maintenance or complex maintenance can be evaluated.
- Quality of security guards and quality of maintenance staff can be assessed.
- Most importantly, RTM comes with an established neighborhood. You can always check the profile of the people residing in the community.
- The cost of living in the said area can be understood and evaluated whether it fits the budget or not.
- You pay EMI alone and not EMI and RENT.
Cons of buying an RTM property while Pros of buying a UC property:
- Any location which has RTM apartments available would be at least 5-10 years old, hence chances of upliftment and modernization of that area not possible. The location of the UC apartment comes with the latest infrastructure and scope of modernization.
- The new areas come with modern social infrastructure like new schools, hospitals, transportation facilities, commercial and retail establishments, etc.
- For the RTM apartment, complete payment is to be made in one go. In UC apartment, you pay as per construction linked payment plan. You can plan your finances better.
- The possibility of appreciation even if it is inflationary is lost when you buy RTM apartment as the cost at which you buy has built that in. In UC property, there are good chances that if the product is good and the location is bound to be prime in times to come, the property prices will move up. This will also make your apartment investment worthwhile.
- UC property can also be used as a savings instrument, you can invest a portion of your earnings over a period of time and build a corpus.
- In UC property, the chances of finding an apartment of your choice are very high whereas, in RTM property, you have to compromise with the location of the unit. Remember, you have to live in this property for many years, hence the location is super important. This becomes a major deciding factor between RTM and UC.
- With new technology and better consultants, the apartment is becoming more and more efficient. You can buy compact 2-bedroom apartments in 900-1000 sq. ft and 3 bedrooms in 1300-1400 sq. ft. Similar units were made in 2-bedrooms: 1100 sq. ft and 3-bedrooms: 1800 sq. ft. which considering a price of Rs 5000/sq. ft translated into an extra spend of Rs 10 Lacs in 2 bedrooms and Rs 20 Lacs in 3 bedrooms.
- With times, new and better construction materials with more durability and better finish come into the market.
- With RERA and other compliances and checks set by the government, UC property translates into a great opportunity.
The govt has promised to spend an additional Rs 100 Lac crore on infrastructure in the next 5 years. We will see more highways, metro, fast trains, seaways and ports and also airports come up in the next couple of years. Under Construction properties under the Modern New India will give us opportunities to find our Home Nest in developments which give an international feel. Friends you can evaluate both cases and take a calculated decision.