Under construction Vs Ready to move in property: Which one is better?

Housing is a basic need however while planning on investing in real estate people are now not sure whether to buy a ready-to-move in house or under-construction property. So, here are a few pros and cons associated with such properties:


Ready -to-move-in-property 

Ready to move-in homes are also known as inventory homes, which are already complete or nearing to completion. Due to the incessant delays in project deliveries in the last few years, homebuyers have started preferring to buy ready-made units.


Advantages of Ready to move in property 


Immediate availability: All you have to do is make the payment, go through all the documentation work and move in. You can avoid the double burden of paying your rents and EMIs.One prime advantage of ready to move in units is the absence of any waiting period. 


Free from GST implications: 5 % tax on the purchase of under-construction property has been recently implied on an under-construction property by the Good and Service department. This GST does not apply to ready to move in property, which reduces the overall cost. 


You get what you see: Unlike any under construction property, ready to move in the property you get what you have paid for. As the house is ready to inspect before you finalized your purchase. As you would know the features, amenities and layouts which are promised to you.


Disadvantages of Ready to move in property  


High cost: The drawbacks of buying ready-to-move units are higher cost as compared to under construction property.


Quality of construction: You cannot check the quality of ready to move in property. In case of an under-construction property you have the option of evaluating the work progress and thus being aware of the quality of construction in terms of the materials used, strength of the foundations etc. 


Age of property: Buying a ready to move in units might not always ensure you a brand new home. The house might be on sale for a long time. Hence, If the maintenance of the house is not done properly then the house might look old.


Exclusion of RERA: As per the RERA Provision, the occupancy certificate as on 1 may 2017 are not mandated As the result it’s not liable for the promoters to make the information available to the public or any platform.




Under construction refers to building, structure, or project that is unfinished but actively being worked on. Under-constructed property are more profitable projects for the builders as they charge a hefty premium on the same compared to the prevailing market price. If you are eager to make a move and have your heart set on new construction. 

Advantages of under-construction property 


Easier on the pocket:  A Under construction property does not cost much to a buyer as compared to the ready to move in property. The factors which a normal buyer would consider such as location, area, property type and the builder are the same. The ready to move in houses are lighter on the buyers pocket. the difference may vary for the buyer by 20-30 per cent.


Higher Return: If you sell the property closer to the possession, you stand a good chance of earning a healthy appreciation on your capital investment. Buying an under construction property usually yields a higher return on investment due to the extended window period between the buying stage and delivery timeline.


RERA Compliance: Any property with occupation certificate as on 1 May 2017, is a mandate to be registered under the State’s RERA. Buyers can get information regarding the properties on the respective states RERA website and even seek speedy atrocity redressal by the  Appellate tribunal formed under RERA. 



Disadvantages of under-construction property 


Higher risk: There is a risk element involved when it comes to investing in under-construction properties. There have been times where the builder’s failed to deliver on time or in some cases, failed to deliver due to various reasons such as late funding in the project, rise in the cost of construction, increase in the cost of land rates.


GST Implication: Buying an under-construction property will attract tax incidence of 5%  of the total cost. stamp duty and registration should be paid separately, resulting in heavy expenditure on the taxes. 


Tax implication: People usually buy a home on loans and EMI. Tax benefits under section 24, 80EE and 80C  of the income tax. These sections are restricted to only ready to move in properties. Tax benefits on the interest paid during the construction of the property can be claimed in. Five equal instalments beginning from the year of the possession. Since the delay has become very common these days those who take a loan for under-construction property have a risk of losing out on the account of tax benefits.


We recommend you to visit Rizvi’s ready to move in properties  Cedar and Utopia  to get desirable experience .