When purchasing a property, people are divided between ready-to-move homes and under-construction homes. Each option has its advantages and disadvantages and you need to weigh your options when choosing between them. Here is a detailed comparison between the two to help you make an informed decision.
Exploring the Pros and Cons of Ready-to-move Homes
The Benefits
Immediate Availability
One of the primary advantages of a ready-to-move home is there is no waiting period involved and you can move in immediately after the purchase agreement is completed.
Save on Rent
If you are living on rent then buying a ready-to-move home might be a good option as you do not have stay in a rented home until your new home is ready which may take a few months or 1-2 years.
Transparency
What you see is what you get! Transparency is a huge factor when making large investments like real estate. Unlike under-construction homes, you can visit the project site in case of ready to move homes and physically inspect the flat you plan to buy. The builder might also have a sample flat ready that can give you a clear idea.
No delays
Ready to move homes are ready in most aspects which includes completion of all construction work and receipt of occupancy certificate from the city authorities. Also, there is no risk of cost escalation which is quite a common thing when real estate projects get delayed.
Financing and Investment Security
Financial institutions find it safer to lend when you are buying ready-to-move homes due to reduced risks like uncertainty and unforeseen delays in the completion of projects. When financing read-to-move-in homes, they can streamline the mortgage approval process due to investment security .
The Drawbacks
Higher Costs
Ready-to-move homes are generally costlier than under-construction projects. One of the reason behind the higher price is few flats are left and the builder is getting more enquiries for the unsold flats due to their prime location. In this scenario, builders are more likely to stick to the final price and there is less room for price negotiation
Reduced Choices
Few flats also mean you have less choice when it comes to choosing your flat (floor or direction) as per Vastu Shastra.
Full Payment Upfront
In the case of ready-to-move properties, the builder expects the buyer to make a full payment or arrange for a mortgage upfront from a financial institution.
Limited Customization Option
Since the flat is ready you have no or very few customization options for which you have to bear the cost. In most cases, buyers have to accept the builder’s layout, finishes, and design.
Pros and Cons of Under-construction Properties
The Benefits
Lower Initial Costs and Flexible Payment Schedule
Generally, under-construction properties are priced lower than read-to-move homes. These properties are offered at an affordable entry point which makes financing easy. Developers offer various payment plans which include lower booking amounts and you have the flexibility of paying in installments as construction progresses.
Potential for Appreciation
The value of the property is more likely to increase when the project is completed. This means significant monetary gains to early buyers. Also, as time passes new projects may come in the area which could improve the infrastructure and amenities causing the prices to rocket in a few years.
Customization Opportunities
Buyers have the option to customize the overall appeal of their home through customization of the layout, design, and finishes.
Wide Range of Choices
You have a wider range of choices when selecting your flat due to the large inventory.
Price Negotiation
Builders are more flexible in price negotiation in case of under-construction properties and you might also get free upgrades and discounts.
The Drawbacks
Waiting Period and Delays
Though developers give a timeline and date of handover, the waiting period is uncertain when buying under-construction properties. You may have to wait for months or a few years to get possession. Labor strikes, financial problems of the developer, or regulatory issues are some of the reasons that could delay the project and you have no option but to wait in such scenarios.
Quality and Specification Risks
When buying under-construction properties, a lot depends on what the developer will deliver. There can be discrepancies between the promised property specifications and the final delivered product. The quality of construction and the visual appeal of the finishes might not meet your expectations.
Conclusion
The decision to buy ready-to-move home or under-construction property entirely depends on your preferences. Study both options carefully and their feasibility to decide which option is best for you.
