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Tata Capital > Blog > Loan for Home > How to Choose Between an Under-Construction and a Ready-to-Move-in Property?

Loan for Home

How to Choose Between an Under-Construction and a Ready-to-Move-in Property?

How to Choose Between an Under-Construction and a Ready-to-Move-in Property?

Buying a home is a significant investment, and choosing the right property type is crucial. Going for an under-construction property or a ready-to-move-in apartment can often overwhelm homebuyers.

If you, too, have been stuck in this loop, don't worry. We're here to help you choose whether to go for a ready-to-move-in apartment or under-construction property.

So let's get started on your home-buying journey!

Points to Consider While Choosing a Ready-to-Move-in Property

#1 Locality

A prime spot guarantees a great return on investment, as you can always renovate the interior, but you can't change its location. Seek out a property near all the amenities to ensure happy tenants with easy access to everything they need.

#2 Neighbourhood

When choosing a move-in-ready apartment, don't forget to explore the neighbourhood. Chat with locals for their insights on the building and the area. Safety and liveliness are key factors in selecting the perfect spot. Avoid developers who promise the world with vague plans and inflated prices.

#3 Legal check of flats

As a homebuyer, don't compromise on the aesthetics or legality of your dream flat. Verify if the developer has obtained approvals and NOCs from Municipal Corporations and other authorities. Conduct due diligence and ensure your investment is legally sound with proper documentation.

Points to Consider While Choosing an Under-Construction Property

#1 Verify the documents

Before investing your hard-earned money, get a clear picture of the legal status of the property. Check basic details like if it's registered under RERA (Real Estate Regulatory Authority) and has environmental clearance.

#2 Financial situation and credibility

Before making a property purchase, ensure that the builder is financially stable. Avoid developers who have been in trouble with previous projects and have multiple consumer complaints. Also, consider how long the builder has been in business.

#3 Check if the site is applicable to home loans

If you plan to buy an under-construction property on loan, opting for projects with the bank's approval is best. This way, the bank can thoroughly evaluate the project and get details about the developer before sanctioning the loan.

Ready-to-Move-in Versus an Under-Construction Property

The table represented below gives an in-depth comparison of ready-to-move-in property and an under-construction property.

ParameterReady-to-move-in apartmentUnder-construction property
Discount and offersSince it's ready to move into an apartment, you need to pay the cost as per the market and even more depending on the amenities.In an under-construction project, several discounts and freebies are offered, such as free car parking.
Ease of sellingAfter a few months or years, you can sell ready-to-move-in properties.If, for some reason, possession is delayed, it can be challenging to sell an under-construction property.
EMIsFor ready-to-move-in property, you'll have to pay EMIs on the home loan and would include no other payments.For an under-construction property, EMI begins after the completion of construction work.
Age of propertyIt could be a negative factor if the ready-to-move property were not occupied for several years.It's not a concern if you possess the newly constructed property. This gives solid ground for future ROI.
RERAOld ready-to-move-in flats with an Occupancy Certificate as of 1st May 2016 have not been included under RERA.With RERA in place, developers must deliver on time, and if they don't, they are responsible for compensation to you.
PaymentSince the ready-move-in units have completed the construction stages, you must have ready finances.For under-construction properties, you'll have more time to make payments as the project has many construction stages of completion.
Property costsIt's usually expensive because the physical infrastructure is already developed.It’s relatively cheaper.
Level of riskThe property can be sold to multiple buyers. Therefore, prioritize due diligence.Under-construction properties are easier to buy. Due diligence is still essential.
TransparencyFor a ready-to-move-in apartment, you get what you see.Under-construction homes may differ from the finished product in design or features.
GSTIt's not applicable to a ready-to-move-in apartment.The GST for under-construction affordable housing units is 1%, while for non-affordable projects, it’s 5%.

Disbursement of the Home Loan - The Process

If you wish to purchase a ready-to-move-in or under-construction home, you may apply for a home loan. Here’s what the disbursement process of a home loan looks


Step 1: Fill out an application form online. Fill in your details.

Step 2: Upload the required self-attested home loan documents.

Step 3: Lender will verify your documents.

Step 4: Lender will do a thorough inspection of your property.

Step 5: Once satisfied, the lender will approve your home loan.

Step 6: The sanctioned home loan amount will be disbursed to your account within 3 to 5 working days.

Over to You

Ready to buy a property? Whether it's under construction or ready to move in, Tata Capital's got you covered. We offer home loan with competitive home loan rates and charges.

With our easy-to-use home loan EMI calculator, you can also determine your eligibility and monthly repayments beforehand, making your home-buying journey a breeze!
Apply now!

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