Compare
Ready to move or under construction?
One lets you move in now. The other gives you time and choice. Both have costs that are easy to miss.
A home is “ready” when the building has its completion or occupancy certificate. Before that, it is under construction, and you pay in stages as it rises. RERA protects these buyers in specific ways: the builder must keep 70% of buyers’ money in a separate account for that project, and cannot take more than 10% before a registered agreement for sale.
Ready to move vs Under construction, side by side
| Factor | Ready to move | Under construction |
|---|---|---|
| GST | None, if sold after the completion certificate | 5% (1% for affordable homes), split equally into CGST and SGST |
| What you see | The actual home, finishes and neighbours | Plans, a sample flat and the builder’s record |
| Payment | Mostly at once, through your loan | In stages linked to construction |
| Rent overlap | Move in soon; rent stops | Rent and pre-EMI interest can overlap until handover |
| Choice of unit | Whatever is left | Usually more floors and facings to pick from |
| Main risk | Hidden defects; check carefully at purchase | Delay; check RERA registration and the builder’s past delivery |
The GST difference, in rupees
Illustrative example only. These are not Reeva prices or a bank quote; change the numbers to your own in our calculators.
- Under construction, ₹60 lakh: GST at 5% is ₹3,00,000 (₹1,50,000 CGST + ₹1,50,000 SGST).
- An “affordable” under-construction home at ₹40 lakh: GST at 1% is ₹40,000.
- A ready home sold after the completion certificate: no GST at all.
Stamp duty and registration apply in both cases. Try the stamp duty calculator.
Our honest verdict
Who should pick which
Ready to move: a good fit if…
- You are paying rent and want it to stop soon
- You want to inspect exactly what you are buying
- Your loan is ready and your timeline is short
Under construction: a good fit if…
- You can manage rent and pre-EMI together for a while
- You want first pick of floor, view and layout
- You trust the builder’s record and have checked the RERA page
FAQ
Questions buyers ask
What is pre-EMI?
With an under-construction home, the bank releases the loan in stages. Until the full loan is out, many buyers pay only the interest on the amount released. That is pre-EMI. It does not reduce your loan.
Why is there no GST on a ready home?
The CGST Act (Schedule III, para 5) treats the sale of a building after its completion certificate as neither goods nor a service, so GST does not apply.
What does RERA do if a project is delayed?
Under the RERA Act, 2016, if the builder fails to hand over on the date in the agreement, you can choose to withdraw with a refund and interest, or stay and receive interest for each month of delay.
How do I check a project’s RERA status?
Search the registration number on the K-RERA portal for Karnataka projects. You will see the registered details, approvals and the completion date the builder has declared.
Is an under-construction home cheaper?
Not always. Compare the full cost: price, GST, stamp duty and registration, plus any rent you pay while you wait.
Still weighing it up?
Tell the Reeva team what you are deciding between. We will call back and talk it through honestly, with no pressure to buy.