Choosing between a ready-to-move house and an under construction property can be a tough decision. It’s highly advisable to consider your personal need, available finances, and the pros and cons of both options before you go property hunting.

Buying A Ready-To-Move House

Pros

You Can Move In Right Away

Buyers can occupy their newly purchased property as soon as the payment is made and the registration is completed.

You Get What You See

Plus, there are people already living in the housing complex. Getting their feedback about the builders, the housing complex, the locality, and other amenities, helps make the decision easier. You also get an idea about your future neighbors.

Cons

How Well Is It Constructed?

You have no idea what material went into its making. You only have the builder’s word about the quality of construction.

They Cost A Lot More

Ready-to-move houses cost about 25 % more than under construction houses.

More Paperwork To Deal With

Ready-to-move houses involve a lot of legal work and transfer documentation.

Outright Payment

All the payment needs to be made upfront.

Buying An Under Construction House

Pros

Cheaper

Under construction houses are significantly cheaper than ready-to-move houses by a margin of 20 % to 40 %.

Low EMIs Or Payment In Stages

Initial investment is low, and down payment involved for a loan is usually 20% of the property value. In case of payment in cash, the buyer has the freedom to pay in installments that are linked to the construction.

Higher Returns

Since under construction properties are generally in the non-core parts of the city, the price significantly appreciates as the area develops.

More Options

New projects keep coming up in various locations, so potential buyers have more choice in terms of location, price range, or even the floor on which they want a flat.

Cons

High risk

Buyers stand the risk of losing their money if the builders fail to complete the project due to several factors such as cash crunch, high raw material costs, or high interest rates.

You May Not Get What You Were Promised

The carpet area after completion is usually 70 % of the super-built area. Many extra facilities like parking areas, swimming pool, and gyms may never materialize.

Risk Of Low Returns

The market outlook may change during the construction period, and you may lose the advantage of high returns if the locality doesn’t develop as foreseen.

Delays In Completion Time

Land disputes, cash crunch, incomplete permissions from authorities can result in frustration as the construction can get delayed by as much as 1-2 years.

Low Quality Construction

Doors, window fillings, electrical sockets and switches may turn out to be of cheap quality. Plumbing may be done in a very inefficient manner in order to save pipe costs, and other facilities like children’s playing area, gardens, gym, etc., may not be up to the mark.

Loss Of Tax Rebate

Income tax benefits can be availed only after the construction is completed, and you obtain a possession certificate.

The ultimate decision to go for a ready-to-move or an under construction house rests with the buyer. Choose the option that gives you the maximum benefit.

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