When we plan to buy a home, 1st question came in mind that whether we should go for ready to move apartment or can we go with under construction property. In one hand ready to move property has no risk like no delay in possession, we buy what we saw. But in other hand while we go for ready to move property, we have less options to choose our flat, price is on higher side. Once we decide to go with under construction property, we got lower price with multiple inventory to choose. But again we some uncertainties like timely possession, should we get, what developer commit at the time of sales etc.

In a ready to move apartment, a buyer gets what he sees. There is no risk of change in future. The construction quality of the project. You can see the amenities of the project. There is no risk of delay of project and escalating costs of property, when its ready to move homes.

However, the disadvantage of ready to move apartment, is that it comes in higher price in comparison to under construction property. Hence, it may not be better choice for an investment & appreciation potential.

Advantage of buying ready to move property:

  • No risk involves – Once you finalize ready to move property, there is no risk involve in terms of price escalation, delay in possession.
  • Buyer can get possession immediate – As buyer bought property & complete transaction. They can get possession of the property immediately. They don’t have to wait 3-4 years unlikely in under construction property.
  • Relief from rent –Once you buy your own property, get immediate possession & shift your own home. It gives relief you from paying rent every month.
  • You will get what you saw – An under construction property is sold on papers. Sometimes buyers feel disappointed in final outcome and what was offered at the time of buy. On other hand, in case of ready to move property, you will visit & see the property 1st, inspect the property and then only you decide to but it or not.
  • No cost acceleration – It is another advantage of buying ready to move property as you are not supposed to pay the increased cost of property after booking amount. But in the case of under construction properties, you have to bear the increased cost of the property.
  • No GST – As you know we have to pay GST while we buy any kind of under construction property. But GST is not applicable in buying ready to move property.
  • Rental Income – In case we are looking for rental income not for self-use. Then we have to buy ready to move properties because here we can start rental income immediate.

Disadvantage of Buying ready to move property:

  • Property cost is higher than under construction property – This is the major disadvantage of buying ready to move property. We have to pay more in comparison to under construction properties.
  • No payment flexibility – Once you buy ready to move property, you have to pay entire amount in very sort spam of time.
  • EMI Started – Most of the time buyer gets loan to pay the consideration value of the property. Once you own the property, Emi starts automatically.
  • Construction Quality – It’s easy to check construction quality in under construction property. We can check progress of construction, material quality etc. But you cannot check it while buying ready to move property.
  • Age of property – Buying a ready to move property might not ensure you a brand new home like an under construction property. The property which you have bought might be up for sale for a long time. Therefore, it has not been maintained properly.

Advantage for buying under construction property –

  • Cost effective – The cost of the property is the most important factor for any buyer. An under construction property is likely to cost less than ready to move property. Buyer will get more options to buy property.
  • Easy to pay – While we buy under construction property, we get several options to pay as per us convince. We have to make payment in easy installments. We don’t have to pay entire amount in one go.
  • More option to choose property – Once you plan to buy property then you have very few option to choose inventory. But if you plan to buy under construction property then you can get more option to choose property as per your choice.
  • Offers & discount – Time to time developer offer various discounts and other offers to boost their sale. Such as free wooden work, or stamp duty waiver, gold coin scheme etc.
  • Good for investment – Under construction property is always good for investment. Here you can get better ROI in comparison to ready to move property.

Disadvantage for buying under construction property –

  • Under construction properties are usually located at under developed part of the city. Therefore, there is more potential to appreciate our property. But each times it’s not working. If particular area is not developed & we got possession in our property, then also price appreciation will get as per our expectation. Whenever you plan for investing any under construction property, must have to know the future development near by the location, infrastructure & connectivity.
  • Delay in possession –It is the most fear factor raised in mind, once we planning to invest in under construction property. Here we have to very careful while selecting property to invest. Select only those properties, which developer has sound track record, don’t have much liability. If our property stuck or get more times than our expectation.
  • Increase the property cost – It is another frequent problem faced by buyers who invested in under construction property. Once project got delayed, developer start finding ways to charge extra money from buyers.
  • Compromise with quality – When builder shows sample flat, it is usually built with all possible facilities and the best quality products. May be you make same expectation of getting the same quality of work in your own flat. But when will get your flat, you may find much different from sample flat to actual what you get.
  • False projection & commitment – This is the biggest problem; which buyer face with under construction property. Builder makes so many promises to the customers related to infrastructure and amenities within the society, but in most cases, you don’t get fulfilled such kind of commitments.

Conclusion –

Just like medicine, that same medicine can’t get relief in all pain like same way each property good for everyone. We highly recommend while you planning to buy or invest in any property, identify your requirement & set your goal before investing. In fact, you have to make financial planning in advance. So that you can’t stuck in between.

  • Ready to move properties are better for those who is planning to get rid of paying rental burden & build their own home.
  • Ready to move properties are better for those who is looking for passive income (Rental income).
  • Under construction properties are better for investment. It has more potential to grow fast.
  • Under Construction properties are better for those who can’t afford to pay lump sum.