Ready-to-Move vs Under-Construction Apartments in Mohali: Which to Choose?
Mohali, located adjacent to Chandigarh, has gained tremendous popularity among the new age homebuyers due to its mix of urban amenities, good infrastructure and rising real estate prices. When people look for the 2bhk flats in mohali, the two most popular property types to consider are Ready-to-Move (RTM) and Under-Construction properties.
1. Pricing
Under-Construction
Under-construction properties in Mohali attract Modern Homebuyers more because of the lower base price and payment arrangements based on construction timelines. Additionally, developers often incentivise early-bird buyers to collectively promote units by granting early-bird discounts, festive deals or pre-launch pricing which fuels interest from buyers with an interest in a cheaper entry point to home ownership.
That said, buyers must also be progressively mindful of the associated additional costs which include: GST on under-construction units, government fee and localities fee, location fees, parking fees and associated club memberships allowing residents full access to the amenities area of the community. In general, pre-EMI has a predictable financial impact to the cash flow of the customer however it will depend solely on construction timeliness.
Ready-to-Move
While it is true that RTM will often have higher rates per square foot, you get to see the real product which allows you to compare comparable properties and likely narrow your decision criteria.
2. Timelines
Under-Construction
These properties come with the risk of unknown dates of delivery, which can be affected by regulatory approvals, labor availability, weather and supply scenarios, which may affect the possession date, any ongoing rental payments (if you are renting) or any pre-EMI interest costs. Even though a good number of reputable developers might have a penalty clause in their agreement regarding any delays, buyers should take caution and read their agreement thoroughly before entering into the purchase.
Ready to Move
With an RTM apartment, there are no waiting periods.You can take possession of the property you purchased right away, which is a great option for families who need to occupy the home immediately or investors looking to secure rental income as soon as possible.
3. Investment and Appreciation Potential
Under Construction
From my experience, the under-construction projects at prelaunch or in its early stages, have the most potential for appreciation because the prices tend to rise with each phase of the building. As rapidly developing sectors of Mohali, especially around the airport road region and IT and commercial area have shown to have a strong long-term tenure, these under-construction units become enticing for investors looking for capital appreciation.
Ready to Move
The appreciation is typically consistent and predictable. The capital returns may not be as extraordinary as the other properties, however, the ready-to-move units offer cash flow with capital appreciation but do not have as much potential for cash flow. Especially for the conservative investors.
4. Financing
Under-Construction
Home loans are disbursed in phases based on construction progress. Buyers pay pre-EMI interest until the project is complete. If construction slows, interest costs rise. Hence, it is important to choose developers with strong records and timely deliveries.
Ready-to-Move
The loan is disbursed upfront in totality and your EMI payments commence immediately. Although this requires a heavier upfront commitment, it eliminates the uncertainties of a pre-EMI period and potential project delays so you have better control over your finances.
5. Premium Amenities
Under-Construction
New developments typically offer modern conveniences such as smart security, landscaped gardens, clubhouses and EV charging stations. However, developments may still be in an emerging context, with road access, market, school and public transportation development still being developed. It is important to analyze the micro-market for potential growth.
Ready-to-Move
With an RTM apartment, you can view the amenities in their final constructed condition. You can weigh-in on what you think of the maintenance, traffic, noise and overall neighborhood development. Furthermore, you will have vegetation that has matured and amenities that are functional from older communities.
6. Resale Potential
Under-Construction
You have the option to sell the property before taking possession through an assignment transfer and while there are transfer fees and paperwork involved, it is plausible. Profitability will ultimately depend on market trends and how much general interest there is in your particular project.
Ready-to-Move
RTM units are often more liquid than resale units under construction because the buyer has the benefit of viewing the actual unit, the actual finishes and surrounding amenities. Resale (RTM) properties offer more options for financing and this is both attractive to end-users and investors.
Conclusion
Regardless of whether you purchase RTM properties or under-construction properties, careful due diligence, visiting the site before the purchase and general understanding of your finances will ensure that your 2bhk flats in mohali have all the makings to fulfill your dreams.
Both RTM properties and under-construction properties present risks and opportunities within the real-estate market, especially given the expeditious growth of Mohali.
So, what are you waiting for? Choose the best and live a vibrant future with your loved ones.
