A ready-to-move-in or an under-construction home: which is better?

A question which generally bothers almost all home buyers is whether one should go for a ready to move in home or book an under construction property. Home buyers are always looking for the best deal they can find with the time and resources available with them.

Each of these options has its own set of advantages which home buyers should be well aware of. Let’s take a look at the options that home buyers have and how they can choose the one that suits them the best based on their requirements.

Advantages of a Ready to Move-in Property

  • You get what you see: In ready-to-move-in property you will get what you see and chances of not getting deliveries as promised by the developer are almost nil. You can see every aspect of the property, including its interiors and maintenance. One can easily judge whether the project specifications match the standards promised or not.
  • No delay in possession: If you know of any project which was delivered on the exact day that it was promised, it’s rare! Delay in the project for various reasons is one of the top most issues with under construction properties. For a ready to move in home, all that a buyer has to do is finalize the property, make payment, sign necessary documents, and get their baggage transported to the new place.
  • Freedom from rent: If you buy an under construction property, you get a double burden of paying rent along with paying the EMI. While, in a ready to move in apartment you can start living there immediately and get complete freedom from paying rent.
  • Easy to check legal status: Since the property is already completed, one can easily check Occupancy Certificate, Completion Certificate and land titles, etc.
  • Zero GST: The ready to move-in property segment remains out of the GST ambit. Hence, there is no GST applicable in case of ready to move-in properties that have received an Occupancy Certificate (OC).
  • Tax Exemption: You can avail tax exemption instantly only on ready to move-in properties, while in an under construction property, the buyer will be considered eligible for tax exemption (both on principal amount and the interest payments) only if the project is completed in a span of three years.

Advantages of an Under Construction Property

  • Cheaper: Buying an under-construction home is cheaper and offers better returns compared with buying one that is already built. However, due to recent factors such as Demonitisation, GST and the Real Estate Regulation Act (RERA), real estate prices are now subdued more than ever and there’s a good chance for buyers as prices of new ready to move-in properties are almost at par with the under construction property prices.
  • Low EMIs: EMIs are paid as the work progresses. Therefore, initial EMIs are low in case of an under-construction home.
  • More choice: There are various locations where new projects come up, so the choice in terms of location or which floor you want are generally high.

Conclusion

While the advantages of a ready to move-in home outweigh the advantages of an under-construction home, home buyers should consider their requirements before taking a call on the same. If they want to move in immediately, and get freedom from rent, then a ready to move-in home makes a lot more sense. In addition to the tax benefit it offers, a ready to move in home will give you much needed peace of mind than going for an under construction property.

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