Under-Construction vs. Ready-to-Move Flat: The Honest Pros and Cons

This is often the very first major decision that every buyer of an apartment in Mohali has to make, and it boils down to two very opposing factors: cost against security.

Undertaken constructions are definitely more affordable on paper, whereas ready-to-move apartments offer the convenience of immediately moving in next week. Each option poses its own risks, but none of them seems to be the perfect choice for all people.

Under-Construction Flats: The Case For

The gap in prices is quite genuine. Under-construction flats available in a new launch project in Sector 70s or New Chandigarh corridor can prove to be 15%–25% lower in cost compared to a ready flat in the same area. This means that you can save up to ₹10 lakhs to 17 lakhs on a flat priced at ₹70 lakhs.

Another advantage during construction is that you get flexibility while making payments. All property developers provide flexible payment plans like 30:40:30 or 20:80 with CLPs that allow you to pay off the cost over 2-3 years as opposed to paying everything in advance.

Finally, there is always an element of appreciation involved in buying a property at the launch rate. Once the project is completed and possession is available, the same property might be appreciated by around 10% to 15%.

Under-Construction Flats: The Real Risks

Possession delays are definitely the foremost one. An under-construction project that is supposed to be completed by December 2025, being delivered in June 2027 is no unheard-of thing in our country. Each delayed month means you’re renting elsewhere even when your EMIs have begun.

While RERA has brought about some level of accountability, this certainly hasn’t solved all the problems. There are penalties involved; however, enforcement isn’t easy. It becomes imperative for you to verify a few things like RERA registration, the performance of the developer regarding completion, etc., before getting into any such commitment.

Under-construction property entails GST payments (5% and 1% for standard and affordable houses respectively); ready-to-move flats don’t have any such tax implication whatsoever.

The other big issue is that you really don’t know what you’re going to buy. The sample unit is likely to be different from the real one. Quality of flooring, finishings, the view from that floor – all of these are mere assumptions at best.

Ready-to-Move Flats: The Case For

It is what you see. It is there. You can go and actually look at the apartment and test its build quality, its view from the fourth floor, and take a peek into the bathroom without putting down any money.

No GST to be paid in stages. You do not need to pay any rent if you are renting currently. Once your registration takes place, the moving process starts, which is essentially saving you from rent.

Ready-to-move is usually less hassle for end-users or people who want to purchase for their own use. They already know about the locality and about all the facilities that are available.

Disbursements of the bank loan become easy as well for ready homes.

Ready-to-Move Flats: The Honest Downsides

It is the case. You must pay for security. In an ideal area, flats that are ready will have a higher per-square-foot price than those still under construction.

Customisation becomes impossible. What you purchase has been built as such already – the floor plans, the interiors, everything that has been put in place.

Sometimes, ready buildings might come with aged electrical fittings, outdated kitchen arrangements, or ageing infrastructure as opposed to what was being advertised.

So Which One Should You Choose?

But if you are going to buy for your own use and will be relocating during the year then ready-to-move is the choice to make since the advantages of guaranteed certainty, taxation benefit, time-saving aspect and seeing your purchase outweigh the additional cost factor.

But if you are a long-term investor with a permanent residence and are purchasing an apartment in a trusted construction company from a reputable project then buying a unit at a lower price from the under-construction stage is worth the effort.

In fact, the developer is of utmost importance in this scenario where even the lowest initial price point offered by an unreliable developer would be a poor investment decision.

Talk to Alvis Estates Before You Decide

Sameer Mahajan at Alvis Estates has assisted many buyers from Mohali and Tricity make this crucial choice considering various aspects like history of the builder, level of development of the project, RERA issues, and location factors, based on their own timeline and budget. Be it about a ready to move flat in Sector 77 or choosing between an upcoming launch in New Chandigarh, it requires deliberations that come up in discussion rather than a simple checklist.