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Under Construction Property Versus Ready to Move in Property

Comments(5) Sub Category:Real Estate Posted On: Apr 29, 2012

Are you confused about buying an under construction apartment or ready to move in apartment? Here we have discussed the negatives and positives of both to help you.
Negatives of under construction property

  • Delay in the Apartment Possession: The incidents of delay in completion of projects have increased tremendously in past 3-4 years.  This happens due to liquidity crunch, dispute on land or incomplete permission from authority. Sometimes builder starts the construction before getting all the permissions, or he invests the money collected from the launch of the project in some other more lucrative project.  It is very important to demand for the deed of deceleration and all other important documents from the builder before buying a property.  One should also check the clause for penalty given by the developer in the settlement document.


  • You don’t get what you see: In the case of the under construction apartment you generally don’t get what is promised to you. We finalize the plan of buying an apartment according to what we have seen as the sample flat. The sample flat is built and represented in a very decorative way which gives wings to our imagination, but what we get sometimes is entirely different to what is expected. Sometimes the layout is changed, no adequate storage space is provided or the amenities are not provided as per promised. In this situation the buyer has no option except taking the apartment as provided by the developer, the buyer may go the consumer court but many times the promises made by the developer are oral.
  • You don’t get to know who will be your neighbors: Apartments are generally not very private type of a housing space. You have to share all the amenities and celebrate your festivals with the people receding in your society. Since India has diversity, it is very important to have people from same region or thinking in your housing society, if you have kids one would like to live in a society where there are many kids for their child to play with.  This makes it very important to know about your neighbors, but in the case of the under construction apartment it is difficult to know who all people will be living around you.
  • Income tax benefits only after getting the possession: People generally invest in the second house to get the tax benefit, but they realize this later that the tax redemption on EMI is provided only after getting the possession of the property. So, if you buying an under construction property as your first house and the possession gets delayed due to any reason , in that case you should prepare yourself about paying the EMI without tax reduction along with the rent which can be quite frustrating.

 

Negatives of Ready to Move in Property

  • A lot of legal work and documentation: An under construction property has all fresh documents while a ready to move in property has all transfer documents, so the legal work and documentation is quite tedious and takes a lot of time.
  • All the money to be payed upfront: In the case of the ready to move in property all the money is payed in a go and there is no way to pay money in installments. You have to pay for down-payment, registration charges and stamp duty at the same time even if you are taking a loan to buy the property.
  • Chances of getting deceived: It is very important to engage a layer in between while buying a ready to move in apartment as there are many chances of getting deceived. In many cases the owner has sold the property to mare that one party and in the end you lose your hard earn money to a court case.
  • Inflated Price already:  Ready to move in apartments are available in the well developed areas of the city where the development has already happened. If you are buying a property which is more than 5 years old , you will pay for the inflated price and the  scope of price increase will be very less.

 

Positive of Under Construction Property

  • Buyer starts paying slowly & conveniently: The best part of the under construction property is that it is affordable to a big section of society as one has to pay the down payment which is mostly 20% as the booking amount and rest is played in the form of the EMI in the case of loan, else they can pay the money in parts as per the construction schedule.
  • Scope to make a choice of location and floor: In the case of ready to move in apartment you don’t have many choices about location or floor, where as there are many locations where new projects are coming up. So, you will have a choice about the location and floor of the apartment you want to buy.

 



  •   Good for investment point of view: The new projects are generally located on the peripheral areas of the city, so the scope of price appreciation due to future development is very high in the new launched projects. To avail the benefit of price appreciation one has to do the basic study about the developments plans in the vicinity areas before buying an apartment.

 

 

Positives of Ready to Move in Property

  • You buy what you see: You get what you see in the case of ready to move in property, you don’t have to compromise on quality or design layout. This also helps you in making a better choice according to your needs.
  • You get immediate relief from Rent & traveling cost: In the under construction apartment, even after paying all the installments you might have to wait for 1-2 years before getting the possession. While, in the ready to move in apartment you can move immediately and get relief from paying rents and traveling cost.
  • You know what kind of people live around you: In a ready to move in apartment you have the advantage to know about your neighbors, their community they belong to, their life style and many other things which are important to make sure if you would like to live in that society.

So, the conclusion is  that if you want to buy an apartment for residing purpose in that case you should go for ready to move in apartment and if you are looking to make an investment , then go for an under construction house as it holds more scope of price increase.
We would like you to share your experience, about buying an under construction property or a ready to move in property.

Also Read:

Property Buying: How to Handle Delays in Project Completion

Encumbrance Certificate for Property Buying

Checklist for Buying a Property



 

5 Responses to “Under Construction Property Versus Ready to Move in Property”

  1. Manish says:

    Awesome stuff , Very useful. I like the way you write. Do you currently have an RSS feed?

  2. Anirudh says:

    I prefer ready to move apartment because there is no chance for delay in possession

  3. preeta says:

    How ready is a ready to move in apartment?

  4. Prithiviraj says:

    I feel ready to use is a better option in compare to under construction property.

  5. Raghavendra says:

    So both the options have their own plus and minus points.. it mostly depends on personal choice and requirements of buyer as which one to buy..

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