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Ready-to-move-in vs. under construction – how do you choose?

By Lodha 04 June 2020

One of the most common dilemma you face when buying a house is whether to invest in a ready-to-move-in home or opt for an under construction project. Currently, the ready-to-move-in homes is are more in demand. Here we look at the pros and cons of each that will help you decide what the best choice is for you.


Under-construction properties: The pros and cons

Properties under construction come with flexible pricing options like staggered payment plans and many attractive offers attached to the price tag, making them easier on the wallet than ready-to-move-in homes. With all other factors like location, size, and amenities remaining the same, a property under construction is often slightly affordable than a completed home with the same features. The difference in pricing can range anywhere from 10% to 30% or more.

Another upside to purchasing a property that’s under construction is that it is mandated to be registered under the Real Estate (Regulation and Development) Act (RERA). This legislation gives you many advantages like builders’ compliance with fair trade practices, reduction in project delays, and speedy redressal of grievances. You will also get a wider choice of units to select from, plan for any alterations in the layout as per your requirement, choose the floorings, etc.
Properties under construction also make for excellent investment options, primarily because there’s a longer window of time between paying for the property and selling it. Additionally, the GST rates on under-construction houses has also been slashed down to 5% from the earlier 12%.

What, then, is the other side of the coin for these properties? The most evident downside to purchasing a property under construction is the possibility of the builder defaulting. Many builders either cause excessive delays in the project or fail to deliver the house altogether, which can result in heavy financial losses for you. To avoid this costly mistake, it’s advisable to buy only from trusted builders with years of industry experience and a history of consumer satisfaction. Another possible problem with under-construction houses is that new regulatory policies or unforeseen circumstances could affect their prices and/or delivery.

Ready-to-move-in houses: The pros and cons

If you’re considering putting your money on a completed residential property, you have many reasons to rejoice. Firstly, you get what you see, and there are no surprises here. With ready-to-move-in homes, you can get a first-hand look at how a property is constructed before deciding to buy it. Also, there’s no possibility of discrepancies in layouts, features, or amenities, since everything is available for inspection beforehand.

Ready-to-move-in homes also offer many advantages from a financial standpoint. All the costs are transparently laid out to you before you sign the deal. You can benefit from greater clarity on the total costs of purchasing and living in a completed property, with details like the maintenance charges, EMIs, and other additional fees explained to you beforehand. With ready-tom-move-in houses, you will also save on paying the GST. Once you’ve completed the formalities related to payment and paperwork, the unit is yours to move into and enjoy the lifestyle. On the flip side, ready-to-move-in homes do not offer much scope for any internal modification to your space. Also, they may cost higher compared to under-construction homes.

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