Should We Buy an Under Construction Apartment or Ready Possesion? What are the Pros and Cons?

When it comes to buying a property, you have two major options: under-construction or ready-to-move-in. Here are some ready to move in and under construction home loan tax benefit and cons:

Under-construction property:

• Pros:

  • Lower costs: Generally, under-construction properties cost 10-15% less than ready-to-move-in properties.

  • Customization options: You can customize the property according to your preferences.

  • Potential capital appreciation: The value of the property may increase by the time it is completed.

  • Payment flexibility: You can pay for the property in installments.

  • New construction: The property will be brand new and you will be the first occupant.

  • Special offers and discounts: Developers may offer special deals to attract buyers.

• Cons:

  • Delay in project completion: The project may be delayed due to various reasons such as lack of funds, legal disputes, or natural calamities.

  • Taxes: You may have to pay taxes on the property even before you take possession.

  • Construction discrepancy: The final construction may not match the original plan.

Ready-to-move-in property:

• Benefits of Buying Under Construction Property:

  • Instant availability: You can move in immediately after purchase.

  • Transparency: You can see the property before you buy it.

  • No GST applicable: You do not have to pay Goods and Services Tax (GST) on ready-to-move-in properties.

  • Reselling and renting: You can rent or resell the property immediately.

• Cons:

  • High cost: Ready-to-move-in properties are generally more expensive than under-construction properties.

  • Absence of RERA regulations: The Real Estate (Regulation and Development) Act, 2016 (RERA) does not apply to ready-to-move-in properties.

  • Age of the property: The property may be old and may require maintenance.

It is important to note that the tax benefits of having a property purchased by the husband in the name of the wife will differ according to their ownership stakes. Your wife can also deduct the entire amount of interest paid on a house loan if the purchased property is rented out. Both of you can also claim deductions up to ₹2 lakh under Section 24 for interest payments on your home loan. Lower interest rates on home loans are also available for women borrowers. I hope you got an idea of the pros and cons of under construction or ready to move property.

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What is the RERA Payment Schedule for Under Construction Flat?

This is a common question that arises in the minds of almost all home buyers. An under-construction property costs less than ready to move in properties. Buyers get many options for under-construction properties. Post RERA, there is an additional advantage of booking a flat in an under-construction apartment as the buyer is safe and secure. We can also design it according to our choice. The difference in pricing also varies from 10-30%. If we want an immediate property to move in, then ready to move in fully constructed are to opt. But in case, if u have time and want budget-friendly, and also to fulfill your dream of having a a house of your own, then under the constructed property is the best option. Both have Pro's and Con's, so it depends upon the buyer to opt the best depending upon their requirements and budget.