Ready-to-Move vs Under-Construction Property: Which Should You Buy?
One of the biggest dilemmas for homebuyers is deciding between a ready-to-move (RTM) property and an under-construction (UC) one. While both ultimately serve the same purpose—home ownership—differences in delivery timelines, risk factors, and customisation options often influence buyer choices. If you’re unsure which option aligns better with your financial and lifestyle goals, this guide breaks down the benefits and drawbacks of each to help you make an informed decision.
Under-Construction Property: Pros, Cons & Key Considerations
An under-construction property refers to a home that is still being built. These projects often offer better flexibility and can be budget-friendly, but they also carry uncertainties regarding timelines and completion. Here’s a closer look at what you can expect:
Advantages of an Under-Construction Property
- Modern Designs & Features: Newer projects typically incorporate contemporary layouts, smart home features, and lifestyle amenities that older RTM homes may not offer.
- Regulated by RERA: Most UC properties are governed by the Real Estate Regulatory Authority, which ensures greater transparency, safety standards, and compliance.
- Structured Payment Plans: Developers usually provide convenient plans—such as construction-linked payments—making it easier for buyers to manage finances.
- Scope for Personalisation: Buyers can often choose fittings, modify layouts, or customise interiors during the construction phase.
- Better Appreciation Potential: UC properties often witness price appreciation by the time construction finishes, making them attractive for long-term investors.
Disadvantages of an Under-Construction Property
- Possession Delays: Construction delays remain one of the biggest concerns, leading to a longer-than-expected wait time.
- No Immediate Use: You cannot move in until construction is completed, which may lead to paying both rent and EMIs simultaneously.
- Developer Risks: If the builder faces financial trouble or abandons the project, the buyer may suffer losses or long delays.
- Extra Charges: Some developers add hidden fees for amenities, development costs, or maintenance deposits at possession.
- GST Applicable: UC properties attract GST in addition to stamp duty and registration charges, increasing the overall cost.
The choice between ready-to-move and under-construction property depends on your priorities:
- Choose an Under-Construction Property if:
You want modern amenities, flexible payment options, or aim for higher appreciation over time. - Choose a Ready-to-Move Property if:
You need immediate possession, want rental income right away, or prefer reduced risks associated with construction delays.
Your financial strategy and purpose—investment or self-use—should guide your final decision.
Frequently Asked Questions
Yes, lenders generally offer similar interest rates for both types. However, the loan disbursement structure varies for UC properties since payments are linked to construction stages.
In many cases, yes. Developers often offer discounts, flexible payment plans, or waivers on certain charges to attract buyers, especially during the early stages of the project.
Yes. Banks provide home loans for UC properties, disbursed in phases based on the progress of construction.
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