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Ready-To-Move-In Or Under-Construction Apartments, Which Is The Right Fit For You?

Ready-To-Move-In Or Under-Construction Apartments, Which Is The Right Fit For You?

Ready-To-Move-In Or Under-Construction Apartments, Which Is The Right Fit For You?
Projects delays have been a major cause of discontent among home buyers across India. (Wikimedia)

Buying a home is a planned decision, which is taken after much contemplation and research. There are plenty of questions that a home buyer has in mind. One such question that they have in mind is to opt for a ready-to-move-in or an under-construction apartment. Some home buyers get confused about whether to go for plans offered by developers or go for a ready to move-in flats.

To answer this MakaanIQ shares which fits well with different kinds of home buyers:

Ready-to-move-in flats

Ready-to-move-in flats are ideal for home buyers who are making their first property investment. This will save them from spending on rentals. The risk factor involved in this category in terms of delays and hassles during construction, is nullified. The disadvantage of Ready-to-move-in flats is their prices. They are pitched at higher prices compared to under-construction projects. Higher price also makes these less attractive from a return on investment (RoI) point of view.

Under-construction flats

Developers offer different plans to home buyers depending on the home buyers' affordability and need. The RoI in these projects is high as they are much affordable compared to the ready-to-move-in option. This is ideal for home buyers planning to purchase their second home. The major disadvantages of projects under construction are delays, price escalation, variance from the planned layout, etc. Home buyers opting for these plans for their first home, will have to shell out money not just for their new home, which is under construction but also for their rental accommodation.

Various plans offered by developers:

Construction Linked Plan (CLP): In this plan home buyer can play the cost in pre-determined instalments to the builder, at various stages of construction. CLP is more expensive compared to the other payment options; as developer is taking a risk on his cash flow (if he is not able to fulfil his construction obligation).

Time Linked Plan (TLP): In this plan the home buyer is required to pay instalments at various points of time, irrespective of construction. This plan offers higher rebate compared to CLP.

Down payment Plan (DP): Customer is required to pay around 10-20% of the total value at the time of signing the agreement and balance is to paid on a time period not exceeding 90-120 days or lower. DP promises good discount as full payment helps developers with the much needed cash flow.

Flexi payment plan: This plan is a mix of both the down payment plan (DP) and a construction linked plan (CLP).

Last Updated: Sat Jun 18 2016

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