Purchasing a house in Bangalore is not just a matter of selecting the place and comparing prices. When home buyers look for a property to buy, one of the very initial steps is to decide on whether to purchase a completed home or choose a project that is still under construction. This decision can depend on whether you want to go for ready-to-move vs. under-construction houses.
There are pros and cons to both choices. Ready-to-move homes enable buyers to get a clear idea about the home they are going to buy, whereas under-construction houses can have new designs and flexible payment methods along with other advantages.
What Is a Ready-to-Move Property?
A ready-to-move property is a completed residential unit that is available for possession, subject to the requirements of completion and occupancy.
One of the most obvious benefits of buying such a property is certainty. It will allow you to physically inspect the unit, check the quality of workmanship, view the apartment, consider lighting and ventilation, and understand the environment around it before making a final choice.
In cases when buyers have no time to wait for their property, it can be a very convenient way to buy.
What Is an Under-Construction Property?
An under-construction property refers to a residential unit that is currently under construction and not yet at its possession stage.
Depending on the phase of development, buyers can purchase such a house from several months up to years before its completion.
But still, the purchaser needs to properly analyze the developer, approval of the project, its construction, the timeline for completion, agreement terms, and relevant legalities prior to investment.
Ready-to-Move Homes vs. Under Construction: Differences
A comparison of the ready-to-move homes vs. under construction will make it easier for you to decide.
| Factor | Ready-to-move property | Under-construction property |
| Occupation | Typically available earlier | Needs time |
| Property examination | Inspectable actual property | Inspection of the end-product not possible yet |
| Uncertainty in construction | Less | More |
| Payment schedule | Large payment typically due earlier | May depend on construction phases |
| Customization | Limited | May be some options with the developer |
| Rent | Potentially rent from an early stage | Typically rent will begin upon occupation |
The key is your decision of what is more important to you; certainty and immediate use or willingness to wait for the potential benefits of the new development.
Possession Timeline
Possession is one of the most important factors that differentiate between the two choices.
In case of a ready property, you will be able to occupy it once the paperwork is completed in connection with the purchase and the relevant documentation regarding possession is sorted out.
In the case of an under-construction property, you will have to wait till the construction process is completed and all the approvals are sorted out.
This makes a ready property a better option for those people who are currently residing in rented accommodations or have urgent housing needs.
What You Actually See Before Buying
One of the key advantages of a completed project is that you have the opportunity to examine the real house itself.
The size of the rooms, floor coverings, installations, windows, doors, balconies, vistas, ventilation, and communal areas can all be assessed. The finished product can also be seen without being dependent on architectural drawings and samples of the units.
If you are considering buying an under-construction home, your choice will have some of it dependent on plans and specifications of the development, samples of apartments, and promises of the developer.
Therefore, the people buying under-construction homes need to give due importance to this documentation.
Pricing and Payment Structure
Price is another critical aspect while comparing ready-to-move-in property vs under construction.
Properties under construction could have schemes where payments could be made against milestones in the project, depending upon the particular project and agreements.
But the total cost needs to be determined in each case. While the base price has to be considered by the buyer, it is also important to calculate the registration cost, taxes, parking cost, interior costs, etc.
While a ready property might need more money up front, the buyer gets a clear idea of what he is getting at hand and how much of his immediate requirements it meets.
It does not always mean that cheaper in price is better in finance.
Construction and Quality Assessment
In the case of the purchase of a ready apartment, physical verification of construction can be done.
It may be checked if the apartment is getting enough sunlight, if there is any indication of dampness, the condition of common areas, and if there is any mismatch between the promised finishes and the ones delivered.
In case of a work-in-progress project, such a physical evaluation cannot be made until the construction is completed.
This is why it becomes very important to research on the reputation of the developer.
Risk and Uncertainty
Risk is an extremely significant factor when comparing projects under construction against ready to move house.
A ready house is less risky, as the house has already been constructed and there is the availability of physical inspection.
Projects under construction have various uncertainties. These include extended construction periods, changing project specifications within regulatory and contractual parameters, and changing market situations due to the construction period.
It does not mean all the projects under construction are always risky. There can be a good and feasible option among the projects of credible developers.
However, the important point here is to do complete due diligence before booking.
Location and Neighborhood Development
No matter which kind of property you go for, location will always play a very important role.
The finished property gives you an opportunity to see what the neighborhood looks like right now, including such aspects as traffic, noise, shopping, schooling, health care facilities, public transport, roads, and many other features that make everyday life easier for you.
If you purchase an unfinished property, you might find yourself investing in an emerging neighborhood.
There will be some advantages in the emerging neighborhood, but you should always look for proof instead of taking everything for granted.
Rental and Investment Considerations
This decision can be approached in a different manner by the investors themselves than the consumers.
The already constructed property has the potential to earn money from rental within a short time from the date of purchase, provided that there is enough demand for tenants and the property is legally ready for occupation.
The under-construction property, on the other hand, will not be able to produce rental income until possession of the property becomes possible.
However, an under-construction property will be of interest to investors who are concerned about long-term appreciation rather than quick returns.
What Should Bangalore Homebuyers Check Before Buying?
Whichever route you take, always perform due diligence.
Perform checks on the legal documents for the property, approvals needed, RERA registration if necessary, past experience of the developer, total cost of acquisition, terms of the agreement, maintenance structure, and conditions for possession.
If it is an ongoing project, then focus on its construction process and possession timelines.
If it is a ready-to-move-in house, make sure to carry out checks in the actual apartment and common spaces. Find out whether the relevant approvals have been made and know what documents you will get on possession.
Never base your decision on the fact that the salesperson claims one option to be “a better investment.”
Your finances, timeframe, lifestyle, and willingness to take risks are the deciding factors.
Final Thoughts
The choice of whether to go for ready-to-move or under construction* depends on what is important to you.
For people who need security, quick possession, and the opportunity to actually see the house before buying, a ready-to-move house may be more preferable.
In case you have time and don’t mind waiting, then an under-construction project will offer you the advantage of being able to have a modern house, up-to-date facilities, and flexible payment options.
The most important thing is not to judge from the name. While comparing ready to move vs under construction, look at the location, the developer, construction quality, documents, total cost, possession period, facilities, and suitability of the house in the long run.
Buying a house is an investment that will last long in time. It is not about choosing a house that offers the maximum discount and latest facilities; it is about choosing the one that offers the right combination of costs, certainty, quality, location, and lifestyle.
Frequently Asked Questions
What is the difference between ready-to-move and under-construction properties?
While ready-to-move property is one that is already finished and ready to be possessed, an under-construction property is one that is still undergoing development. Differences include the period when one can possess the property, the schedule of payments, the degree of visibility of construction work, and uncertainty.
Is a ready-to-move property better than an under-construction property?
Not necessarily, as one type is not better than the other. For some people, a ready-to-move property would be preferable due to its availability and certainty, while for others the opposite would be true.
What are the advantages of ready-to-move homes vs. under-construction properties?
Ready-to-move homes vs. under-construction properties can have certain advantages in terms of certainty since the buyer will be able to actually see the house that he/she is purchasing, evaluate its quality of construction, and overall feel the neighborhood.
Is it a risk to purchase a property under construction in Bangalore?
There are some risks involved in purchasing a property that is still under construction because of construction risks. However, such risks can be assessed based on the past experience of the developer, RERA certification if any, project approvals, construction stage, terms of the agreement, and possession period stated.
What is the difference between ready-to-move-in and under-construction?
Ready-to-move-in and under-construction have their advantages and disadvantages that vary depending on your budget, financial plans, needs for possession, and waiting time.
