Under-Construction Vs Ready to move home: Which one is better ?

Buying a home is a moment of joy. You can finally call it your own. However, it has its own share of hassles that needs to be addressed.

Among many, the debate of under-construction vs ready to move home - is the most important point home buyers face.

Both of these are catered to a specific set of buyers, and hence designed in the same way. What works for under construction property isn't necessary will work for ready to move home too.

It's therefore essential to know the pros and cons of both units before making a decision.

Under construction property:


- Low cost

The main benefit of an under construction property is its low cost. It's affordable for many.

You also get the leisure of paying slowly, and fittingly. All things same, such as the different amenities provided, it costs less than a ready to move in house.

- Higher Returns

There's a high scope of increase in prices for construction properties. This is due to the elongated timeline between the buying period, and delivery date.

As the houses are generally in remote areas, the prices rise in alignment with the future value.

So, if you sell it before the possession time frame, you will be rewarded with healthy gains.

- You get to see the actual construction

You get to know the quality of raw materials used for the construction. Also, you can ask the builders to customize it, the way you want.

You also get the flexibility to decide to choose your floor space, and room selection.


- Delay in deliverability

Under construction properties are subject to constant government regulations. This extends the project date.

It's rare the project is completed within the deadline. Sometimes, the deadline gets extended even by years.

The main reason is due to land dispute, permissions hold up, etc.

- Compromise in quality

Often, you don't get what you are promised. In haste of completing the project, the builders neglect the quality.

Problems such as changed outlook, lesser area, and inadequate facilities are faced by the buyers.

Many times over promises are made, but it's not fulfilled.

Tax paying issues

If you don't get the possession certificate, you will have to pay rent+EMI. You will also be deprived of tax benefits.

Buyers will also have to pay for the stamp duty, and registration charges. This leads to more expenses.

Ready to move in Houses:


- Instant access

You don't have to wait for your house. Pay the cash, and you get your house immediately.

This saves you from the hassles of waiting, paying rent and EMIs.

There's are no issues such as land disputes, disagreement with the authorities, etc.

- You pay for what you see

In case of ready to move in houses, you get to check the quality of the house before making the decision.

You can check the layout, pledged amenities, and features.

This way you aren't tricked to purchase the house, as in some under construction properties.

- No GST burden

GST costs are only ordered for the under construction property.

They are charged 5% tax as of the current rule. However, the ready to move in houses are exempted from this clause, and hence you save money.


- Hefty prices

As opposed to the construction property, the cost of these houses are more.

Also, there is no chance of upsurge in room prices, as rapidly as it happens in the construction properties.

So, if you want to buy it, you have to consider the factors, and pay 20-30% more.

- You don't know the foundation

Ready to move houses don't give you the opportunity to evaluate the raw materials used.

The exact strength of the foundation is unknown.

All you can do is examine the present condition, and invest in the property.

- One-time payment

You have to do the payment all at once.

There are no periodic investments that you are offered. Whether it is stamp duty, registration fee, or down payment, one time payment is needed.

Wrapping up…..

The above is the detailed guide regarding the two properties.

If you are someone who wants to buy the house for an investment purpose, buying the under construction property is more suitable.

For your own family purpose, ready to move in house is the best choice.

Final decision is yours. Evaluate the pros and cons of both, and decide what's best for you.