Real Estate: “Under Construction" or "Ready To Move” Which is Better

When thinking to buy a property biggest confusion generally is whether to buy ”Under Construction” or “Ready to Move”. If Ready to move properties are on expensive side than there is no surety about the quality & delivery of Under Construction properties. So the buyer is highly confused.

Let’s try to compare both the options by seeing the pros & cons of these.

Under Construction

Benefits

1.       Rates of Under Construction properties are generally on lower side.

2.       You can get a Unit of your choice as lot of options available.

3.       You can get interiors done as per your taste.

4.       Even if Home Loan eligibility not there , still you can spread your payments        over a period by choosing “Construction Linked Payment Plan”.

5.       Builder offers you a number of incentives like Discount, Free Parking, Free          Club Membership etc.

          

Problems

1.     No surety about quality of construction.

2.     In present day scenario, no surety about delivery time.

3.     Not easy to cancel a unit after booking it. Generally cancellation is with some      deductions, which many a times are as high as up to 25% of property value.

4.     If Builder defaults than chances of money getting stuck.

Ready To Move

        

Benefits

1.     Surety about the quality of construction.

2.     Absolute clarity on amenities available.

3.     You have to pay one : either EMI or Rent and not both.

4.     You can rent out your property, if taken for investment purpose and the rent      can partially or fully support your EMI.

5.     Generally very less paper work in comparison.

Problems

1.     Limited choice as fewer options available.

2.     Whether eligible for loan or not, you have to make payment is single shot.

3.     So as to have interiors of your choice you, many a times, have to fully                renovate the unit. This is quite expensive.

4.     Rates are on higher side.

Generally the rates of Ready To Move properties are on higher side as compared to Under Construction ones. But then this difference in rate is many a times neutralized by extra money you pay by way of rent during the construction period and interest on bank loan. But still the cost works out to be on higher side.

But these extra rent or interest burden is partially compensated by builders via “Assured Return till Possession” schemes these days.

So what option to go, varies from person to person and circumstances. As seen above both options have their pros & cons.