Ready-to-move-in vs under construction home

While buying a home for you and your family, every decision needs to be taken meticulously. As a first time home buyer, there will always be two options before you. First, to go for a house under construction and second, to opt for a ready to move in house.

While both options may ring different tunes to different buyers, you should be aware of the advantages and disadvantages associated with both the options.

Ready to move in flat

While buying a home, you would love to choose a home that is ready for you to move in and settle down. A ready to move in flat may be your obvious preference as you can take possession of the house readily. As property prices are increasingly moving upward and delivery of flats is being postponed, more and more buyers are opting for ready possession houses. However, before jumping into the band wagon, you should take a look at the pros and cons of buying a ready to move in flat.

Image Courtesy: Vakil Housing Development Corporation

Advantages

First, as a home buyer you can save on your rent once you buy a ready to move in flat. You get to take possession of the house immediately and thus save on the rent that you would have to pay in case you had bought an under construction house.

Second, there is no question being misled or get disappointed about the requirements and quality of the house. You see the flat that is already built up and thus have no reason being sulky about not having the requirements needed by you.

Disadvantages

Ready to move in homes are relatively costlier than under construction homes. In some cases, they may cost 20%-25% higher than the under construction homes, depending on the locality and market condition.

If you go for ready to move in flats, you lose out on the option of lower EMIs applicable in case of under construction homes as banks release payments on the basis of phase wise completion of a project.

The scope for modification according to personal choice is limited in case of ready to move in flats. You may alter the requirements regarding your kitchen in under construction flat, but such customisation is not possible in case of ready to move in homes.

The demand for ready to buy homes is quite high. Hence, you might lose out on choices as you would have to take faster decision.

Under construction homes

Under construction flats or homes are the conventional choices in a real estate market. First, the buyer decides to build a project and advertises it. Potential home buyers are then asked to book the flats and most of the units in a project usually gets booked before the construction completes. On the first glance, under construction homes seem to provide a plethora of options for the buyer and make the transaction easier.

However, there are certain risks involved with buying an under construction property. Let us investigate the pros and cons of buying an under construction house.

Advantages

Buyers have more liberty to choose and customise internal layouts of a flat. You can choose a customised kitchen or modification in your attic or bathroom while going for under construction flat.

Under construction homes are relatively cheaper than ready to move in flats. It makes more sense as an investment as at the time of buying, you get the home at lower price and there is always a possibility of price appreciation at the time of completion.

Disadvantages

A lot depends on the credibility of the builder to put the project through completion. There is possibility of delay in delivering completed projects due to late approvals, increase in input costs and limited funds.

If there is delay in completion of the project, as a home buyer you would be incurring double loss. You would be paying home loan EMIs for a longer period of time; and also you would be paying rent for a longer time.

There are chances of meeting with false promises. You may not get to possess the desired home you have been dreaming of. At the time of completion, all the features projected in the unit may not be present in reality.

Decide yourself

It is for you to decide whether to go for an under construction home or a ready to move in flat. If you have a long time line with enough savings and ready to pay EMIs for a longer tenure, then going for a ready to move in property built by a reputed developer may be the best option available for you.

Related Real Estate Articles:

Budgeting makes it easier to buy home

Buying property in a speculative market

Property buying tips for single women

Image courtesy of David Castillo Dominici at FreeDigitalPhotos.net