What to Check Before Buying Under-Construction or Ready-to-Move House?

Comparison Criteria

Under-Construction Properties

Ready-to-Move-in Properties

Price

Relatively cheaper. Lower prices offered in early project stages.

Higher price. Typically more expensive than under-construction properties.

Value Appreciation

Better prospects for value appreciation for long-term investment.

Limited scope for value appreciation

Payment Schedule

Flexible payment schedules and include construction-linked options.

Full payment is required upfront or as per the agreement.

Customization

Allows customization such as modifying layouts, choosing finishes, and upgrading the features.

Limited or no scope for customization. Buyers get the property as it is.

Completion Risks

Risk of delays, quality discrepancies, and market uncertainties.

No risk of construction delays; quality and layout are as seen.

Possession Timeline

Possession only after construction is completed, which can take time.

Immediate possession is available.

Uncertainty

Subject to construction delays and quality deviations.

Eliminates uncertainties related to construction and quality.

Cost Considerations

Initial lower cost but potential additional costs due to delays or quality improvements.

Higher upfront cost, but ensures comfort and immediate ownership.

Neighborhood/Amenities

Amenities and neighborhoods may not be fully developed at the time of purchase.

Fully developed neighborhoods and amenities are readily available.

Buyer Preference

Suitable for buyers looking for long-term investments and flexibility in payments.

Suitable for buyers looking for immediate housing and assured ownership without uncertainties.

Things to Check Before Buying Property in India

Under-Construction Property

Ready-to-Move Property

RERA Registration

Verify the project's RERA registration for transparency and accountability.

Ensure RERA registration to confirm legal and quality compliance.

Documentation

Check land title deeds, approved building plans, completion certificates, and NOCs. Engage a legal expert.

Verify the builder-buyer agreement, sale deed, occupancy, and encumbrance certificates. Seek legal advice.

Developer’s Reputation

Research builder reputation through reviews, past projects, and RERA complaints.

Assess the developer's credibility via completed projects and homeowner feedback.

Approvals and Clearances

Ensure all legal clearances like environmental permissions and municipal approvals are in place.

Verify municipal approvals, environmental clearances, and necessary NOCs.

Construction Progress and Quality

Inspect the site, materials, and safety measures; consult a civil engineer.

Get professional assistance in evaluating structural integrity, materials, and finishing.

Payment Plans

Choose from the flexible payment plans like construction-linked or down payment options.

Discuss the installment plans or one-time payment options. Understand all fees.

Bank Loan Approval

Ensure the project is approved by reputed banks for credibility.

Confirm loan eligibility and pre-approved offers from banks. Use the HouseGyan Home Loan EMI Calculator to calculate your EMI in advance.

Transparency in Pricing

Account for GST, registration, parking, and maintenance costs.

Be aware of hidden charges like stamp duty, registration fees, and additional facilities.

Future Infrastructural Development

Research upcoming infrastructure projects to gauge future value.

Analyze planned developments for enhanced connectivity and amenities.

Resale Value

Evaluate location, connectivity, and developer reputation for long-term value.

Consider factors like location and builder reputation for market value potential.

Timely Delivery

Prefer projects from developers with a history of on-time completion. RERA provides safeguards against delays.

Not applicable for ready-to-move properties but ensure quality standards.