Buying a home is as much about timing as it is about taste and budget. In Bengaluru, buyers often face the same question: should I pay a premium for a ready-to-move (RTM) home and avoid construction risk, or choose an under-construction (UC) project that’s cheaper now but promises future gains? This guide lays out the pros, cons, finance & legal realities, and a simple checklist so you can decide with confidence.

Quick snapshot

• Ready-to-move (RTM): Immediate possession, zero construction risk, easier financing — but often at a price premium.

• Under-construction (UC): Lower entry price, customization potential and upside if the area appreciates — but exposure to delays, quality uncertainty, and sometimes longer waits. (Brigade Group)

Why choose Ready-to-Move?

• Immediate possession. Move in, rent out, or renovate and sell right away - no waiting.

• No construction risk. You can inspect finished quality, unit layout, and actual sunlight/ventilation.

• Easier bank financing & clear resale value. Many buyers and lenders prefer RTM for clearer valuation and immediate collateral.

When RTM is the right pick: You need a home quickly, are risk-averse, or value certainty (e.g., relocating families, NRIs who can’t monitor construction).

Why choose Under-Construction?

• Lower entry price / early-bird pricing. Builders often price early phases competitively to sell inventory.

• Customization & newer amenities. You may pick finishes or layouts in certain projects and benefit from newer master-planned communities.

• Potential appreciation. Infrastructure-led growth can push prices up by the time of possession. (Brigade Group)

When UC makes sense: You’re buying for long-term appreciation, want to customize interiors, or can comfortably wait for possession.

Risks to watch for with Under-Construction projects

• Possession delays. Delays are common enough that buyers need contingency plans (rent + EMI). RERA gives remedies, but enforcement can take time — recent cases show significant compensation orders exist, though legal processes can be slow. Always check the promoter’s delivery record.

• Quality & scope changes. Promoters sometimes change specifications; verify everything in writing and cross-check with RERA disclosures.

• Dual cost burden. If a delay happens, you may pay EMIs to the bank while still renting elsewhere — budget for this possibility.

Financing differences

• Under-construction loans are typically stage-disbursed. Banks release funds as construction milestones are met; interest is charged only on the disbursed amount until completion. This can reduce your immediate interest burden but requires careful scheduling.

• Ready-to-move loans follow standard disbursal and can make early resale or rent simpler. Compare effective cost, processing fees and prepayment terms before you sign.

How to decide: a quick buyer-profile guide

• Choose RTM if: You need to occupy immediately, dislike construction risk, or want rental income right away.

• Choose UC if: You’re comfortable waiting, want a lower entry price, or believe the micro-market will improve (new metro, road upgrades).

• Investor angle: UC can give higher percentage gains in a rising market, but RTM reduces time-to-rent and downside risk.

Practical checklist before you book (RTM or UC)

• Verify RERA registration & project details. Check registration number, possession timeline and uploaded documents.

• Builder track record. Ask for past projects, delivery timelines, and any RERA orders/complaints.

• Payment schedule & cancellation terms. Know milestone dues and what happens if you cancel.

• Quality & specifications sheet. Get a signed list of materials and finishes.

• Loan pre-approval & FOIR check. Ensure your eligibility and buffer for emergencies (rent/dual EMIs).

FAQs

Q: Can I get a home loan for an under-construction property?
A: Yes - banks offer stage-disbursal home loans for UC projects; interest accrues only on amounts disbursed until possession. Compare lenders for the best structure.

Q: What if possession is delayed?
A: RERA gives remedies (compensation, interest or refund in some cases). Document all communications with the promoter and file a RERA complaint if needed - but note that legal processes take time.

Our practical tip

Before you commit: schedule a peak-hour commute test from the project to your workplace, inspect the finished unit or show flat, and ask for written confirmation of all fixture brands and amenities. If anything is verbal, get it in the agreement.