Ready To Move Vs Under Construction Property: Where Should You Invest?

The real estate market has a bunch of options for investors and buyers. But nowadays, a debate has started over which property is better to invest in, ready to move or under construction. Although we all know every option available in real estate has its own value and benefits, but individual choice always has an edge over anything. Today, we will assess all the pros and cons of ready-to-move and under-construction property and where an investor should invest?

What Is Ready To Move Property?

Ready-to-move properties are ready for immediate occupancy and do not involve any waiting period. As soon as you complete all the documentation and pay your amount, you will get possession of your flat or property.

What is under construction property?

Under construction, the property is still being prepared for occupancy and needs several years to be completed. You need to wait for 3 to 5 years to get your home’s possession, and it can extend in case of any issue.

Advantages of Investing in a ready-to-move property

Immediate Possession 

You can take possession of a ready-to-move property immediately and without any delays. The buyers can move into their homes as soon as the deal gets completed. The ready-to-move property is helpful for those who want urgent accommodation and want to shift immediately.

You don’t have to pay GST.

The goods and services tax means GST is only applicable to under-construction properties and does not apply to ready-to-move properties.  So, you will save a significant amount. So, it is always advisable to invest in ready-to-move property if you want to save GST.

You get what you see.

When you purchase a ready-to-move property, you assess the property before finalising the deal. You consider the design, architecture, construction quality, and maintenance. If you want to review the final product before purchasing the property, it is always better to invest in ready-to-move property.

Disadvantages of ready-to-move property

Higher cost

Ready-to-move property costs more than under-construction property as it provides the full and finished product. You don’t have to wait for the possession, and you get the same product you paid for.

Depreciation

Some ready-to-move properties have older construction; as time passes, the depreciation affects the construction and also the overall building. The structure gets old and looks ugly from the outside. But if you invest in a fresh, ready-to-move property, then you don’t have to face an old-looking and an ugly building. So, if you want to invest in a ready-to-move property and also want fresh construction. Then, always opt for fresh, ready-to-move property. 

Advantages Of Under Construction Property

Lower Initial Investment 

Under Construction Property requires a low initial investment. You don't have to make the full payment at a time, but you need to pay as the development goes on. Also, the overall cost of an under-construction apartment is low. But when the project gets completed, and then you purchase it. It will cost you a lot more than the initial investment. 

Flexible Payment System 

The payment system in under-construction apartments is really flexible. Buyers don’t have to make the full payment at a time. But we have to deposit small parts as payment along with the construction.

Customizations

The customization options with under-construction properties are flexible, which you don't get with ready-to-move properties. You can customise your home according to yourself, such as colour, flooring,  and flooring materials, to select bathroom fixtures and kitchen countertops; buyers can make decisions that reflect their style and preferences. 

In some cases, buyers also help to alter the floor plan, such as adding or removing walls, changing the layout of the kitchen, or incorporating smart home features. This level of customization ensures that the final home will meet the specific needs and desires of the buyer, making it truly unique and personal.

Disadvantages Of Under Construction Property 

Higher Purchase Price

Ready-to-move properties generally come at a higher purchase price compared to under-construction homes. This premium reflects the immediate availability and reduced construction-related risks but can be a hurdle for budget-conscious buyers or those aiming to maximise their investment value.

Older Construction Concerns

Some ready-to-move homes may be older in terms of constructions, which could necessitate maintenance and updates. Issues such as outdated systems, wear and tear, and lower energy efficiency may require additional investment to enhance the property's value and comfort.

Considerations for Buyers

Prospective buyers should carefully evaluate the financial importance of higher upfront costs and potential maintenance expenses. Conducting thorough inspections and assessments before purchase is essential to ensure the property meets current standards and personal preferences, aligning with both financial goals and lifestyle needs.

Conclusion 

The choice between investing in a ready-to-move property versus an under-construction one depends on individual preferences and financial considerations. Ready-to-move properties offer immediate possession, no GST implications, and the advantage of seeing exactly what you're buying.

However, they come at a higher cost and may require maintenance over time. On the other hand, under-construction properties allow for lower initial investment, flexible payments, and customization options but involve waiting periods and potential construction delays. Ultimately, buyers should weigh these factors carefully to make an informed decision aligned with their investment goals and lifestyle needs.