A Guide to Choosing Between Under-Construction & Ready-To-Move-In Homes

Searching for your dream home in the city is no easy task, especially with a large maze of existing residential projects in Mumbai! This journey requires tons of effort where difficult choices have to be made by the homebuyer at every step. In this quest, a common dilemma that stumps many today is having to decide which is the better choice – ready-to-move-in homes or under-construction properties.

While some may label the former as a better option and the latter as not such a good one, things are certainly not as black or white! Both types of properties have their pros and cons, which must be carefully weighed before purchasing the type of home you desire. So, read ahead as we list out things you must consider before choosing between the two types of properties.

Ready-To-Move-In Homes: Advantages & Disadvantages

With constructions being affected due to the Covid-19 scenario* – many home buyers now are leaning towards ready possession flats, fearing delays in under construction projects. Moreover, ready to move in properties are excellent options for people who desire to shift quickly or families who want to quickly move out of the vicious monthly cycle of paying rent.

  • In a ready possession flat, a homebuyer gets what he sees! Right from the construction quality of the project to the surrounding amenities and the infrastructure size – everything is right in front of the buyer to be inspected carefully.
  • These homes are ideal for families that want to avoid a waiting period or even the risk of project delay. Unlike an under-construction project, one can simply move in a ready possession flat as soon as the paperwork is completed!
  • Ready possession flats are higher priced than under-construction projects and there is usually immediate payment to be made. However, all the costs are transparently laid out and you don’t even have to worry about paying GST.
  • While these homes are deemed expensive, they can be cost-effective for homebuyers who want to move in immediately to avoid more rental expenses. In this way, one does not incur the double expenses of rent and EMI, which is often the case when one purchases an under-construction project on loan.
  • However, a general flipside of choosing a ready possession home is that you can neither choose the desired floor nor make big changes in the internal infrastructure.

Under Construction Properties: Advantages & Disadvantages

Under construction properties, being easier on the pocket than ready possession homes, have often realised the dream of many a Mumbaikar of buying a home. These properties also make for a great investment as well and you only need to look at the large number of people who invest in the new constructions in Thane for proof!

  • Under construction projects are generally affordable when compared to ready possession flats. One can also certainly look forward to flexibility in payment options, where homebuyers are only required to pay 10 to 15 percent of the booking amount initially.
  • Since the inventory of under-construction flats is also higher, homebuyers can get the unit of one’s choice. Thus, it is easy to get the desired floor as well as configuration type and even plan for early alterations in the flat layout!
  • The lower price of under-construction projects is one of the reasons why it is an excellent choice as an investment option for those who are looking for significant returns. Since the price point significantly increases as the construction progresses, one stands to yield high monetary gains by booking early and then making a sale right before possession.

  • However, one must also remember that there are certain costs involved which are not paid for ready to move-in homes. For example – One needs to pay a GST (Goods and services tax) when purchasing an under-construction project. While it was 12% earlier, this tax has been slashed down to 5% now!**
  • Another thing a first time home buyer must factor in their financials is the simultaneous payment of monthly rent along with the monthly loan EMIs till one can get possession of the flat. This may mean living below one’s means for a while.
  • A recent upside to buying under-construction flats is the introduction of the RERA (Regulation and Development) Act, 2016. This legislation has brought in many advantages – right from holding developers accountable for project delays to ensuring that they comply with fair trade practices. This has given homebuyers more security while purchasing these flats, without having to fear large project delays.
  • Moreover, the RERA act has also brought in more transparency, as the credentials of the developers and their projects can be checked by homebuyers easily. In fact, homebuyers can not only check the construction status of a project, but they may also get a fair compensation if the builder actively delays the project.
  • However, there is a tiny chance that one may still suffer financial losses if a builder defaults, delaying a project even further or even failing to deliver it at all! This is why one should always purchase the property from reputed and trusted developers such as Ashwin Sheth Group, who have been around for a long time in the real estate industry and have a history of consumer satisfaction.

We believe that both, ready-to-move-in as well as under-construction projects have their respective advantages. What you choose depends on several factors such as your budget as well as your personal requirements. With this guide, we hope that you may get better clarity, which will help you make an informed decision on buying your home.

* 99 Acres

** Live Mint

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