Property investment in itself is not an easy task, let alone deciding what kind of property is best for you. One of the most common dilemmas for homebuyers is deciding whether to opt for a ready-to-move-in apartment or an under-construction house. To help you arrive at an informed decision, we have drawn up a comparison […]

Ready-to-move-in or under-construction: What’s best for you?

June 26, 2020

Property investment in itself is not an easy task, let alone deciding what kind of property is best for you. One of the most common dilemmas for homebuyers is deciding whether to opt for a ready-to-move-in apartment or an under-construction house.

To help you arrive at an informed decision, we have drawn up a comparison between the two, highlighting key points of difference, to give you more clarity before you make a final investment choice.

Price
One of the most obvious differences between the two is the price factor. An under-construction apartment is invariably lower in price in comparison to a ready-to-move-in house. The difference can vary from 10 to 30 per cent. If factors such as property type, location, real estate builder are the same, an under-construction property will cost much less than a ready-to-move-in home.

Possession
Going by its name, a ready-to-move-in property eliminates the question of a waiting period. All you are expected to do as a homebuyer/investor is make the payment, complete documentation and move into the house. As for under-construction apartments, one can expect delays in the delivery timeline, which could push the possession date further.

Appreciation on Investment
Since you buy an under-construction property at a lower price in comparison to a ready-to-move-in house, the appreciation value of the former is likely to be higher. To get a good return on your investment, make sure you check the location and upcoming infrastructure around the property.

Risk Factor
A ready-to-move-in property poses as a low-risk choice, as compared to an under-construction house. With ready-to-move-in properties, the homeowner knows exactly what to expect as they can see the quality and infrastructure of the house right in front of them, as opposed to under-construction properties that are still in the making.

Purpose
If you are a first-time homebuyer, a ready-to-move-in house is a better suited choice for you, as the question of delayed possession does not arise and you know what to expect. On the other hand, an under-construction property is more suitable for those who are not going to be the end-users of the property and can invest in the house at a lower price at the initial stage.

Tax Implications
Under section 24, 80EE and 80C of the Income Tax Act, homebuyers that purchase ready-to-move-in properties through loans can take advantage of tax benefits on the interest paid. However, those who take home loans for under-construction apartments, risk losing out on tax benefits, including the payment of stamp duty and registration charges separately, which is not applicable to ready properties.

The first step towards home investment is ascertaining your realistic budget. Once you have that in place, the decision of choosing between a ready property or an under-construction one becomes slightly clear. Weigh your options and keep this list in mind. Bear in mind, a good investment broadly comprises quality construction, neighbourhood, infrastructure, and connectivity.

For your next investment, check out villas and apartments in Chennai by Casagrand developers for all family sizes and budgets. Located in few of Chennai’s best and most opportunistic neighbourhoods, Casagrand’s both ready-to-move-in and under-construction properties present the future of residential investments in Chennai.

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