When buying property, deciding between a ready-to-move (RTM) property and an under-construction property can be tough. Each has its own set of benefits and drawbacks. To help you make an informed choice in 2024, let’s break down the pros and cons of each, with some real-world data to guide you.
Ready-to-Move Properties
Why Consider RTM Properties?
1. Immediate Availability: The most significant advantage is moving in right after purchase. This is ideal if you need a home quickly or want to avoid the hassle of renting.
2. No Surprises: With RTM properties, what you see is what you get. You can inspect the property firsthand, ensuring there are no hidden issues with construction quality or amenities.
3. Reduced Risk: There is no risk of project delays or cancellations, which is a significant concern with under-construction properties.
What the Data Says:
– A report from Anarock Property Consultants shows a 35% increase in sales of RTM properties in the first quarter of 2024 compared to the same period in 2023. This surge indicates a strong buyer preference for immediate possession.
– RTM properties account for 55% of the total residential sales in major cities, underscoring their popularity among homebuyers.
Under-Construction Properties
Why Consider Under-Construction Properties?
1. Lower Initial Costs: These properties are generally cheaper than RTM properties, offering a financial advantage.
2. Flexible Payment Plans: Developers often provide payment plans linked to construction milestones, making it easier to manage finances.
3. Potential for Appreciation: Properties can increase significantly in value by the time they are completed, especially in rapidly developing areas.
What the Data Says:
– According to JLL India, under-construction properties can be priced 20-30% lower than RTM properties in similar locations.
– In growing areas, these properties have appreciated by an average of 15% annually over the last three years.
Key Considerations
Delivery Timelines:
– RTM: No waiting period. You can move in immediately.
– Under-Construction: There’s always the risk of delays due to various factors like regulatory approvals or financial issues developers face.
Financing:
– RTM: It is easier to obtain home loans as banks view these properties as less risky.
– Under-Construction: Loans are available but are disbursed in phases, which might complicate financial planning.
Rental Income:
– RTM: You can start earning rental income immediately if you rent out the property.
– Under-Construction: No immediate rental income, but the potential for higher returns once the project is completed.
Customization:
– RTM: Limited scope for customization.
– Under-Construction: Greater flexibility to make changes or upgrades during construction.
Conclusion
Choosing between a ready-to-move and an under-construction property depends on your immediate needs, financial situation, and risk tolerance. If you need a home immediately and want to minimize risk, RTM properties are the way to go. However, under-construction properties can be a great choice if you’re looking for a lower initial investment, flexible payment options, and the potential for appreciation.
Do thorough research, consider your long-term goals, and assess your financial situation before deciding. Investing in real estate is a significant commitment, and the right choice can lead to substantial benefits in the future.
