Ready Possession vs Under Construction: Which Is Better?

If you are in the Pune real estate market, looking for a residential property to invest in or buy as your new home, one of the biggest dilemmas you will face is whether to buy a ready possession or under construction property. Which one is better? Well, the answer isn’t simple. While both have their advantages and disadvantages, the final answer depends on your personal preference, financial situation and individual needs. 

It is safe to consider both types of properties as equally enticing, weigh the pros and cons and decide after. So let’s dive in, shall we?

PROs of buying a ready possession property

As the name suggests, these apartments, flats or villas or already built, have received an OC (Occupancy Certificate) and are ready to be occupied. These are some of the top benefits of buying a ready possession property:

• The biggest advantage here is that you can just pack your belongings and move into your home. It is ready to move in property as the name suggests. Hence, there is no waiting and no uncertainty.
• The biggest risk of a property getting delayed during construction is completely omitted here. This further eliminates the risk of financial loss or stress due to property delays.
• Buying a ready to move in property is less stressful than buying an under construction unit and waiting for it to complete.
• You can get a clearer picture of the final property as it is already constructed. The quality and structure can be examined well before finalizing the deal. 
• No GST is required to be paid on a ready possession property that has received the OC.

CONs of buying a ready possession property

Like in any other situation, there are downsides to buying a ready possession property as well. A couple of cons to be considered here are:

• As the inventory is already built, chances are most units are sold, so the options to choose from are limited as compared to under construction properties.
• The amount of structural changes that can be done while designing interiors are very limited too as the construction is complete. These will also come at your expense.
• Ready possession properties are usually more expensive than under construction properties in the same market.

PROs of buying an under construction property

The benefits of buying under construction properties are also plenty. Let us understand them individually:

• A major advantage of buying an under construction property vs a ready possession property is that the former is priced much lower than the latter. They also offer a scope for negotiation as the developer is collecting construction costs. The potential for offers or discounts in festive periods is also higher.
• The potential for customization especially any structural changes you may deem necessary for your interior can be done easily at this stage.
• The potential for appreciation is higher as the value increases over time, especially once property construction is complete. So if you are planning to invest to sell, these would be a great choice.

CONs of buying an under construction property

However under construction properties also carry some weight of disadvantages. Below are some you should keep in mind:

• As mentioned earlier, under construction properties can get delayed, leading to financial loss and stress. Despite the RERA act preventing and regulating such occurrences, natural disasters and situations like COVID can leave both developers and customers in a bind.
• You cannot see the unfinished product, so there is an uncertainty about the quality and final look.
• Unless the developer is well established and trusted, there is a risk that they may default and leave you in a difficult situation. So, it is advised to research properly before investing.

Ultimately, comparing and buying ready possession property vs under construction property is a matter of individual situations and priorities. Whether you are looking to move into a home immediately or are looking to buy a more affordable property, make an informed decision. Happy home buying!