Contact us

NVT Quality Lifestyle Blog

Under-Construction Or Ready-To-Move-In Homes: Know These 6 Differences Before You Buy A Property

Almost all homebuyers stumble upon this question during their home-buying journey, a ready-to-move-in or an under-construction property, which is better? Both the property types have their own purpose and intents. It is very significant to understand the advantages and disadvantages of both property types. This article is all about under-construction vs ready-to-move-in properties. It helps homebuyers to understand the difference and make the right decision.

Under construction versus ready to moveUnder-Construction property

Every year several real estate companies and agents launch different projects meeting the demands and requirements of their prospective customers. These companies showcase the projects that are under construction and promote them. Let’s look at the advantages of choosing such properties


An under-construction property gives homebuyers flexibility in arranging for finances over a period of time as the house gets ready. If the property is located in a well-developed area, depending on the builders, square feet and other various parameters, a ready to move in home costs more than the under-construction property. Generally, the difference in the pricing may vary from 10% to 30%

Higher return on investment

If you are in search of an investment that yields higher returns, then buying an under-construction property is usually a good choice based on the launch pricing. It gives better returns due to an extended window period between the buying stage and the delivery timeline of the project. If you want to avail high return then selling a property which is close to possession would be the better decision. An under-construction property closer to possession will earn healthy appreciation in most of the posh localities.


RERA Compliance

Every property with Occupation Certificate should be registered under their state’s Real Estate Regulatory Authority (RERA). These property types will also come under the ambit of RERA. Therefore, it becomes liable to comply with fair trade practices. Homebuyers can get necessary information related to their property on their respective state’s RERA website. Additionally, they can also seek speedy grievance redressal by the Appellate Tribunal under RERA, introduced in the year 2017. 

Make Payment with Ease

The easiest way to make your dream of owning a house is by opting for under-construction property. This type of property is affordable for most people in India. It also comes with certain calculated risks but these risks are manageable. If you are buying an under-construction property, there is no urgency in terms of paying the complete price of the property at once. Generally, you should deposit the amount in phases and make the maximum amount during possession. At the time of purchase, you need to make a down payment, which is 10% o 20% of the property price. And the EMIs will be within your financial capacity.

Under-Construction Property

Better Options

The under-construction property offers you wider choices and more options to select from. Several real estate companies, launch a new project at various locations so that prospective homebuyers can choose as per their wishes and conveniences. They are offered more option in terms of location, floor, specification and design options etc.

Capital Gain Tax

 If you would like to sell your already existing property and want to buy an under-construction property then the construction of that should be completed within three years from the sale of your existing property. If the construction takes more than three years, then the long term capital gains of your sold property are taxed at 20% along with the cess payment and surcharges.  

According to the Income-tax rules in India, you avail capital gain tax from the sale of property only if the amount is reinvested in a property within two years. There is another possibility of gaining tax benefits, where you can invest in a house if you purchase one year before the sale of the asset or use it to construct a house within three years

Ready-to-move-in Property

Homebuyers prefer ready home because of the incessant delay in the project deliveries or long window period. Ready homes will save you time, energy and offer you the assurance of getting the possession immediately. It is possible only if you have the necessary budget. Ready-to-move-in homes would be the better option and it reduces the chances of getting cheated. Customers can mitigate the risks of real estate builders not being able to complete the project for any unforeseen event. Here are some of the advantages of opting ready-to-move-in homes.

ready to move homes

Immediate Availability

It depends on homebuyers preferences if they are unwilling to go through the window period. One of the prime benefits of opting ready to move in homes is the absence of a waiting period. Homebuyers should make the payment, go through all the legal property documents and move in. In addition, it can also help you stay away from the burden of paying rent and EMIs if you get home purchase financed.

You Get What You See

When it comes to ready-to-move-in units, you occupy the home that you have paid for. That means the property is ready to inspect before you make the purchase decision or finalize the purchase. Here, there is no risk of discrepancies with the amenities, features, layout of the property and many other significant things.

GST Implication

Ready-to-move-in properties are left out of the ambit of Goods and Services Tax (GST). When it comes to under-construction properties, as per the recent development there is a 5% tax on the purchase. 

Several builders offer you a great deal in terms of constructed area and facilities. If you are buying an apartment or 3-4 BHK this builder will offer you various in-house and other facilities related to the re-creation and all within the society campus. Even the covered area of these houses is more than the covered area of the ready-to-move-in property in the same budget.

Buy within your Budget

According to your financial standards, you can select the ready-to-move property. This type of property allows you to get possession immediately right after paying the needed price. There is no possibility of worrying about the increase of the property price unlike under construction types.

In ready homes, you will be assured of the security system before you make a purchase decision. A gated community has a certain amount of security. It makes it hard for anyone to get in with any illegal intention. Some apartment and villa communities issue a swipe card or digital code access at the entrance of the project. Generally, it is well-known that CCTV monitors most of the areas such as car parks, lobby, hallways and communal areas for security reason. 

Freedom to Renovate

Customers will have the liberty to renovate the property right after the purchase and immediate possession. If you are opting for under-construction properties, several real estate companies won’t provide you with such independence because it is being built as per the approved architectural layout. 

Get to know about your Neighbour

One of the primary benefits of ready-to-move-in properties is that you can get to know about the people living around you. A fully developed community will let you see who your neighbours are and what kind of community they belong to. Therefore, it helps them to make a right and informed decision. Additionally, it is also significant to know about the maturity of your prospective neighborhood. And you can check out connectivity from your new home with transport, hospitals, parks, recreational facilities, schools and many more. 

In general, it is evident that a ready-to-move-in property will be easy on the pocket, save time and give you an assurance of getting your dream home immediately. More importantly, pre-built homes are perfect for anyone who wants a place to call home. A competitive price is a positive factor for homebuyers in the under-construction property segment. Alongside, it also offers a bigger area than ready-to-move-in properties, high return on investment, better options and many more. 


We’d love to hear from you. Send us your questions, valuable feedback and requests.

    +91-88842-45678 CAP 1, EPIP, Near ITPL, 1st Main Road, KIADB Export Promotion Industrial Area, Whitefield, Bangalore - 560066
    fb yt in Ln
    Get In Touch With Us Today

    NVT brings you an international-living experience with villa townships in East Bangalore.

    We build only villas.

    +91-88842-45678 Whitefield, Bangalore
    fb yt in