Ready to Move vs Under Construction: Which Property is Right for You?

Are you worried about knowing the right property for you to invest? Well, do not complicate this. It is quite common when it comes to purchasing a home, buyers often face the dilemma of choosing between under-construction properties and ready-to-move-in flats. Make a strong and viable decision that is keenly based on your willingness and financial goals. Ensure that your decision aligns with your financial capabilities and personal goals. Each option has its unique advantages and disadvantages, making it essential for potential homeowners and investors to understand the impact of their choice.

This comprehensive guide will explore the differences between these two types of properties, ready possession vs. under construction, helping you make a proper decision based on your requirements.

What is an Under-Construction Property?

Under-construction apartments refer to residential units that are still being built or have not yet been completed.

Buyers invest in these properties with the expectation that they will be finished within a specified timeframe, as it requires the homebuyers to wait for the given period, and and it could get delayed.

However, buying an under-construction flat involves advantages like lower cost, the option for you to customize, flexible payment plans along the increased potential for appreciation and rental income.

This option is popular among investors due to its typically lower price point and potential for customization during the construction process. Also, under-construction properties are ideal for those who prefer higher ROI (Return on Investment).

If you are confused between under-construction vs ready to move in flats, consider the pointers above!

Related Blog : How to Check DTCP Approval for Your Plot

What is a Ready-to-Move-in Property?

In contrast, ready-to-move-in properties are buildings that are already constructed and ready to be occupied.

Buyers can physically inspect these homes before purchasing, ensuring that they meet their expectations in terms of quality and amenities.

Additionally, these properties eliminate the uncertainties and delays often associated with construction projects, providing peace of mind and a quicker transition into your new home.

This option, apartments ready to move in, is often preferred by those who need a home quickly or want to avoid the uncertainties associated with construction delays. It is preferred because they get to buy what they see and there are no extended delays in handing over the property.

There are several apartments for sale in Chennai, that are ready to possess,making your job easy, if you would want to own an apartment immediately which you can check.

Now, if you have a debate between ready to move vs under construction, consider the above-given points before making your decision.

Key Factors to Consider Before Making a Choice

Here’s a property buying guide for you to consider before investing in a property. It gives you a clear understanding of ready-to-move flats that are under construction.

1. Financial Aspects

• a. Under-construction - Generally priced lower than ready-to-move-in homes, offering significant savings (often 10-30% less) due to the waiting period before occupancy. (For instance, if an under-construction property costs ₹30 lakh, a comparable ready-to-move property might cost around ₹40 lakh.)
• b. Ready-to-Move-in - These homes come at a premium due to their immediate availability. Buyers pay for the convenience of moving in right away without any waiting period.

2. Delivery Timelines

• a. Under-Construction Properties - Involve a waiting period that can range from several months to years before completion. This option suits buyers who are not in urgent need of housing but are looking for long-term investments.
• b. Ready-to-Move-In Properties - Provide instant occupancy, making them ideal for individuals or families who need a home immediately due to job relocations or other urgent circumstances.

3. Customization Options

• a. Under-Construction Properties - Allow for greater flexibility in customization. Buyers can often choose finishes, layouts, and other features during the construction phase, tailoring the home to their preferences.
• b. Ready-to-Move-In Properties - Limited customization options are available since the home is already built. Any changes may require additional costs and approvals from the developer or homeowners' association.

4. Location and Infrastructure Development

• a. Under-Construction Properties - Under-construction properties may be situated in emerging neighborhoods that are not fully developed yet. While these areas might offer lower initial prices, they come with uncertainties regarding future infrastructure development and neighborhood growth.
• b. Ready-to-Move-In Properties - Ready-to-move-in properties are typically located in well-established neighborhoods. This means that amenities such as schools, hospitals, shopping centers, and recreational facilities are already in place. Buyers can assess the community's vibe, safety, and overall living conditions before making a purchase decision.

5. Legal Risks and Approvals

• a. Under-Construction Properties - Carry higher risks related to construction delays, project abandonment, or changes in regulations. Buyers must be prepared for potential setbacks that could delay their move-in date.
• b. Ready-to-Move-In Properties - Offer lower risk as buyers know exactly what they are getting. There are no concerns about construction delays or quality issues since the property is already completed.

Related Blog : What is Patta and Its Importance for Property Owners

Pros and Cons of Under-Construction Properties

Pros of Under-Construction Properties

• ⮚ Cost Savings : Under-construction properties are generally priced lower than ready-to-move-in homes, often by 10-30%. (For example, if an under-construction apartment costs ₹30 lakh, a similar ready-to-move-in unit might cost around ₹40 lakh).
• ⮚ Customization Options : Buyers have the opportunity to customize their homes according to their preferences, such as choosing finishes and layouts, depending on the stage of construction, and can check if it aligns with the builder's policies.
• ⮚ Potential for Appreciation : As the property nears completion, its value may increase significantly, providing investors with lucrative returns.
• ⮚ Flexible Payment Plans : Many developers offer staggered payment plans for under-construction properties, allowing buyers more time to arrange financing.

If you are interested in knowing which is better under construction or ready-to-move property, keep reading for the cons of under-construction properties.

Cons of Under-Construction Properties

• ⮚ Risk of Delays : One of the primary concerns with under-construction properties is the risk of delays in project completion. Factors such as labor issues, material shortages, or regulatory hurdles can affect timelines 68.
• ⮚ Quality Uncertainty : Buyers cannot physically inspect the property before purchase, which means they must rely on plans and models that may not accurately represent the final product.
• ⮚ Higher Overall Costs : Although initial prices are lower, buyers may face additional costs related to delays or changes in construction quality that could arise after purchase46.

Related Blog : Stamp Duty and Registration Charges for Property Buyers in Chennai

Pros and Cons of Ready-to-Move-in Properties

Pros of Ready-to-Move-in Properties

• ⮚ Immediate Possession : Buyers can move in as soon as the purchase is complete, eliminating any waiting period associated with construction delays.
• ⮚ No Risk of Delays : In a ready-to-move-in property, the buyers face no delay or risk of handing over the property because it is an immediate occupancy home. Buyers need not worry about the duration. Since these properties are already built, there is minimal risk involved regarding project completion or quality issues. Buyers can see exactly what they are purchasing.
• ⮚ Transparency in Quality : Buyers can inspect the property before purchase, ensuring it meets their expectations regarding quality and amenities.
• ⮚ No GST on Purchase : Ready-to-move-in properties are not subject to GST, which can significantly reduce overall costs compared to under-construction options that incur this tax.

Cons of Ready-to-Move-in Properties

• ⮚ Higher Costs : The convenience of immediate occupancy comes at a premium; ready-to-move-in homes typically cost more than their under-construction counterparts.
• ⮚ Limited Customization Options : Once a property is completed, making significant changes can be difficult and costly. Buyers may have to settle for existing designs and layouts.
• ⮚ Potentially Fewer Choices : Depending on market conditions, there may be fewer available options in terms of location or specific features compared to under-construction projects where multiple units are still being developed.
• ⮚ Lower appreciation in developed areas : In developed areas, the scope for further infrastructure development or new amenities is often restricted. Since these neighborhoods are already built out, there may be fewer opportunities for enhancements that could drive property values higher.

Sameera Estates gives you plots that are good with proximity to everything you want for a happening lifestyle and there are Chennai properties for sale, that you can check with on our website with a couple of other locations.

Related Blog : Flat, Villa, or Plots - What to Choose for Your Dream Home

Comparing Costs: Which is More Affordable?

Wondering which property investment is best under construction or ready possession? Here’s a comparison of both types of properties to understand which costs more in cost and finances: “under construction or ready to move property”

Related Blog : Things to Check Before Purchasing Property in Chennai

Impact on Home Loan and EMI for Under Construction Vs Ready-to-Move-in Properties

Under-Construction

• Loan Disbursement Structure: Home loans for under-construction properties are typically disbursed in stages based on the construction progress. This phased disbursement leads to lower initial EMIs, as borrowers pay interest only on the amount disbursed at each stage.
• Tax Benefits: Pre-construction interest can be claimed in five equal installments starting from the year of possession, which means no immediate tax benefits during construction.

Ready-to-Move-in

• Immediate Financial Commitment: For ready-to-move-in properties, buyers typically need to make a full payment upfront or follow standard EMI schedules from the loan's initiation. This results in higher initial financial outlays compared to under-construction properties.
• Tax Benefits: Homeowners can claim full tax deductions on interest payments (up to ₹2 lakh per year) and principal repayments (up to ₹1.5 lakh per year under Section 80C) immediately upon possession of ready-to-move-in flats.

Related Blog : RERA Approved Projects: Importance, Benefits & Approval Criteria

Investment Perspective: Which Option is Better for Returns?

When considering real estate investments, one of the most critical decisions is whether to invest in under-construction properties or ready-to-move-in properties. Each option presents unique benefits and challenges, particularly regarding potential returns on investment.

Buyer Profiles: Which Option Suits Your Needs?

Budget and Affordability

• Under-Construction Flats : Generally priced lower than ready-to-move-in options, these properties offer financial advantages such as phased payment plans. This can be particularly appealing for first-time buyers or those with tighter budgets, as it allows for more manageable financial planning during the construction period.
• Ready-to-Move-In Flats : These require a higher upfront investment due to their immediate availability. Buyers must be prepared for a full payment or standard EMIs from the start, which can strain budgets, especially for those looking to minimize initial costs.

Urgency to Move In

• Ready-to-Move-In Flats : Ideal for buyers who need immediate occupancy. This option eliminates the waiting period associated with construction, allowing for a hassle-free transition into a new home. It is particularly suitable for families relocating quickly or those who need to avoid temporary housing arrangements.
• Under-Construction Flats : Best for buyers who have flexibility in their timeline and can afford to wait for completion. This option may be less suitable for those requiring immediate housing solutions due to potential construction delays.

Conclusion and Recommendation

The choice of under-construction flat vs ready to move property can be ambiguous but ultimately it is dependent on individual circumstances and priorities.

For buyers seeking affordability and customization options with a willingness to navigate potential risks, under-construction properties may be ideal. Conversely, buyers needing immediate occupancy with less risk might find ready-to-move-in homes more appealing.

Both options have their pros and cons. Understanding these differences allows potential homeowners and investors to make needful decisions that are suited to their unique needs and financial situations.

Whether you opt for an under-construction project or a ready home, thorough research and careful consideration will lead you toward making the best choice for your future living situation.