Ready-To-Move Vs Under-Construction Property: What Should Homebuyers Choose?

Buying a home is the biggest financial decision for most people. Among the first choices a buyer must make is whether to go for a ready-to-move-in property or one that’s under construction.

Both options have their advantages and drawbacks, and the final decision often depends on personal preferences, financial goals and risk appetite. If you are looking forward to availing a home loan for buying a residential property, the loan structure could also significantly vary for a ready-to-move-in property and an under-construction flat.  

A ready-to-move-in property is exactly what the name suggests — a home that is fully constructed and available for immediate possession. For many buyers, this option offers peace of mind. You get what you see. There are no construction delays, no uncertainties around the final layout and no temporary rental expenses while waiting for the project to finish.

These properties are particularly attractive to end-users who want to move in quickly. They're also easier to evaluate in terms of quality, neighbourhood infrastructure and amenities. Also, since there is no waiting period, you start saving on rent immediately if you were previously a tenant.

However, ready homes tend to be more expensive than under-construction properties in the same area. Also, you might have fewer options to choose from when it comes to layout or customisation. The initial payment is higher and you must be prepared with a larger corpus upfront, especially if the property is not new and lacks staggered payment options.

Under-construction homes are usually priced lower compared to ready-to-move-in homes, offering a more affordable entry point for buyers. Payment plans are usually linked to construction stages, making it easier to manage finances over time. For long-term investors or first-time buyers who can wait, these projects are an attractive option.

Also, you may have the flexibility to choose your preferred floor plan, view or direction. Some developers even allow basic customisations during the construction phase.

But this affordability comes with risks. Project delays are common, especially if the developer lacks a strong track record. Regulatory approvals, funding issues and even economic slowdowns can cause possession timelines to stretch, leading to financial stress. It's important to check if the project is registered with RERA and whether the builder has delivered previous projects on time.

Purpose of purchase: If you're buying a house to live in immediately, a ready-to-move-in property is often the safer bet. If it's an investment for the future, under-construction properties might yield better returns.

Financial readiness: Do you have the funds for a lump sum payment? Or would you prefer staggered payments linked to construction? Home loan amount and repayment structure could also significantly differ depending on the construction status of the property.  

Risk appetite: Are you comfortable taking on the uncertainty of delays and changes in project plans?

Due diligence: Always research the builder’s reputation, check legal clearances and verify RERA registration.

Overall, there is no one-size-fits-all answer. Ready-to-move homes offer security and immediate utility, while under-construction homes provide affordability and long-term value. Evaluate your financial situation, timeline and comfort level with uncertainty before making your choice.