One of the first decisions in any property search is whether to buy a home you can move into now, or book one that will be ready in a few years. Neither is always better. The right choice depends on your budget, how soon you need the home and how much risk you can take.
The short version
| Under-construction | Ready-to-move | |
|---|---|---|
| Price | Usually lower | Usually higher |
| Payment | Spread over construction stages | Mostly upfront |
| GST | 5% (1% for affordable housing) | None, if an Occupancy Certificate has been issued |
| Delay risk | Yes | None |
| What you see | Plans, sample flat, brochure | The actual home |
| Rent or move in | Only after possession | Immediately |
| Customisation | Sometimes possible | Limited |
Why buyers choose under-construction
- Lower entry price: projects are often priced lower at launch than at completion.
- Staggered payments: in a construction-linked plan, you pay in instalments as the building progresses, so your cash outflow is spread out.
- Newer construction: you get the full life of the building and a newer design.
- Choice of units: early buyers can pick their preferred floor, facing and layout.
The risks of under-construction
- Delays: possession can slip, sometimes by years. RERA gives you a right to interest or a refund, but that doesn't help much if you are paying rent and an EMI at the same time.
- Pre-EMI costs: with a home loan, you usually pay interest on the amount disbursed so far (pre-EMI) until possession, and the full EMI only starts later, so your total interest paid can be higher.
- The finished product may differ: finishes, views and amenities don't always match the brochure.
- GST adds to the cost.
Before booking any under-construction project, check the builder's track record on its earlier projects and the project's quarterly progress updates on the RERA portal. Our RERA checking guide shows you how.
Why buyers choose ready-to-move
- What you see is what you get: you can inspect the actual home, the view, the neighbours and the water supply.
- No delay risk and no years of paying rent and EMI together.
- No GST if the project has an Occupancy Certificate (OC).
- Immediate rental income if you are buying to invest.
What to check in a ready home
- The Occupancy Certificate (OC) or Completion Certificate is issued, not just "applied for".
- Water supply, power backup and lifts are working; visit at different times of day.
- Any construction defects such as dampness, cracks and the quality of plumbing and wiring.
- The maintenance charges and the state of the residents' association.
- For resale, the society's no-objection, unpaid dues and the encumbrance certificate.
How to decide
A simple rule of thumb: if you are currently paying rent and need to move within a year or two, a ready home often wins even at a higher price, because you avoid paying rent and EMI together. If you have stable housing, a longer horizon and the builder's track record is strong, under-construction can offer better value.
Ask yourself:
- When do I actually need to move in?
- Can I afford to pay both rent and EMI if possession is delayed by two years?
- How strong is this builder's delivery record, measured by actual possession dates and not claims?
- After GST and pre-EMI interest, is the under-construction price still meaningfully lower?
Still undecided? Ask buyers in the PropRaahi community who have bought both ways.