In the last few years real estate sector has been booming and evolving at a very high speed, and one of the most difficult decisions for homebuyers continues to be whether they should go for a ready-to-move-in home or invest in a plot or land and construct their dream home on their own. This question depends on your lifestyle, financial status, investment goals, and risk-taking capacity. There are many real estate builders or real estate companies to help you out in deciding whether you should buy a ready-to-move-in property or under under-construction property.
According to the FICCI–ANAROCK Consumer Sentiment Survey H2 2023, buyer preference for ready-to-move and new-launch homes has almost equalized, with the ratio standing at approximately 23:24, down from 46:18 in H1 2020. Ready-to-move properties normally attract those people who are seeking immediate possession and zero construction risk, while under construction or land or plot continue to attract investors and price-sensitive buyers.
Let’s compare between ready to move and under construction properties to help you decide which suits you more:
Ready to move in properties: As the name suggests, ready to move in properties are those properties that are completed residential units and available for immediate possession after purchase. In these properties, buyers can physically inspect the house, construction quality, and move in without any delay. There is no risk of project delays or any increase in cost as the project is already completed, but GST will not be applicable.
Under Construction Properties: On the other hand, under construction projects are the properties that are still in the construction phase and offer a longer possession timeline, but at an affordable entry price, as the property is still under construction without any modifications. In these properties, buyers get payment flexibility, and buyers have the chance to customize certain aspects of the house. But these under-construction properties have a risk of potential delays, a change in project specifications.
Ready to move properties pros.
1. Immediate possession: No waiting period, good for those who needs a place for immediate live now.
2. Lower Risk: Less risk of construction delays or project cancellation
3. Rental Income: Good for rental income you can start renting out space as soon as you move in.
4. No GST: No Need to pay GST on the ready to move property
5. Better Loan Options: Normally ready to move properties have favorable loan options as most of the banks are ready to offer you loan.
Cons:
1. Higher Price: Ready to move properties are generally more expensive as property is ready and seller add their margins also.
2. Limited customization: There is no option to customize your property as it is already built
Under Construction Properties Pros:
1. Lower Price: Under-construction properties have a lower purchase price compared to ready-to-move properties, especially if you buy early.
2. Chance of Higher Potential: There is a chance that the price of your under-construction property can rise as the surrounding area develops.
3. Flexible payment plans: You have the option of flexible payment over the construction period.
4. Customization Opportunities: It gives you a chance to customize certain things or areas as the property is still in construction mode.
Cons:
1. Delay in Construction: Delay in construction is possible as the project can longer than expected.
2. Higher Risk: Under construction properties have more risk as the cost can overrun, project delays or even cancellation.
3. GST Applicable: You will have to pay GST, which can increase; on the other hand, on ready-to-move properties, you don’t have to pay any GST.
How You Can Decide:
Keep in Mind your Timeline: If you need a place to live immediately then you should go with ready to move in property on other hand if you can wait you can go with under construction.
Check Your Budget: If you are going for ready to move in property then you need a large upfront payment and if you are going for under construction property you need less amount in starting as payment schedule can be flexilbe.
Your Risk Tolerance: If you are a risk taking person and can wait long then you can go for under construction property and if you dont want to take risk of delays or cancellation then you can go with ready to move properties.