Under Construction Vs Ready To Move Home - Which One Is Better For You?
The outbreak of the COVID-19 pandemic has made us realise the importance of owning a house. Apart from being a valuable asset, it is also an investment for the future. One advantage that COVID-19 has brought with it is that the home loan interest rates today have dropped, and interested people can buy a property of their own.
While moving into your own house is a great achievement, there are many things that will need your attention before you finalise a deal. One of the biggest decisions that the owner needs to make is whether to go for an under-construction house or a ready-to-move-in place. Both properties have their own benefits and drawbacks, and therefore, it is totally up to the owner which one to prefer. However, to choose one of them, it is very important to know both of them first.
Understanding Under Construction Home
Under-construction houses, as the name suggests, are houses that are still not built. They are generally located in areas that are not well established, and therefore, these houses' prices tend to remain 10-15% lower than ready-to-move properties. However, this factor may vary according to the house's location and the builder's plan. Buying an under-construction house will allow you to plan everything in and around your house, and all of this, combined with low home loan interest rates, is the best deal to have.
Understanding Ready to Move Home
A ready-to-move house is built, and you can move in whenever possible. A ready-to-move home has many benefits that a buyer may find very attractive. First of all, a buyer gets to see what he is going to pay for, how the surroundings are, neighbours, whether the house is furnished as per his/her taste or not, etc. Secondly, there is no waiting period associated with ready-to-move houses, and therefore, it is preferred by buyers who wish to invest quickly.
Under-Construction Vs Ready to Move Home – Things to Consider
Each of these aforementioned houses is best in its own way. However, taking out a home loan and buying your own house is not an everyday job, and here are some key points you should consider.
- Estimate your budget and then look at which house matches your expectations as well as your budget
- Select the location looking at your daily travel routes
- Make sure the property has all the important documents and licenses needed for the deal
- Read all the documents carefully before applying for a home loan.
Under-Construction Vs Ready to Move Home
| Parameters | Under Construction Home | Ready to Move Home |
|---|---|---|
| Formalities | Less documentation is required as compared to ready-properties | There are a lot of documentation procedures and other legal processes to be completed |
| Price | Comparatively cheaper than the ready-to-move houses but depends upon the location | Generally, on the higher size |
| Risk levels | Low chances of risk. The buyer’s due diligence is important | There is a high level of risk as the property may have been sold to more than one owner in the past. Due diligence of the buyer is mandatory |
| Ease of selling | It is often difficult to sell an under-construction property | Ready-to-move properties are easily sellable. |
| Source of income | It will take time before one can actually use the house as a source of income | Ready-to-move houses can be quickly put on lease, and the money can be used to pay the EMI of the home loan. |
| Payment | As the property is still under construction, the full amount might not be demanded at once but would be paid in intervals | The buyer would be asked to pay the whole amount at once |
Conclusion
Buying a house is an important phase in everybody’s life and should never be done in a hurry. No matter how occupied you are, you must understand the features of both properties to choose the one that suits you best. After you select your dream house, move on to the next step, i.e., home loan. If you need a home loan, visit your lender's online portal and read about the loan features, interest rates, and other important information. Fill out the form quickly, submit it, and await your home loan approval.