🏗️ GST · Pre-EMI · Delay Risk

Under-Construction vs Ready-to-Move Property Calculator

Compare the true cost of both options — GST, pre-EMI interest, rent overlap and possession delay risk — not just the sticker price.

Property Prices
Possession & Payment Plan
24 months
Rent & Home Loan
8.50%
20 yrs
Appreciation & Delay Risk
10.0%
7.0%
6 months
Enter both property prices to see the comparison.
Verdict
⚠ Possession delays are common in Indian real estate — many under-construction projects run 6-24 months behind schedule. Figures above are illustrative estimates based on standard assumptions (80% loan-to-value, interest-only pre-EMI, staged/linear disbursement per payment plan). Always verify the builder's track record and RERA registration before booking. This is not financial advice.
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True UC Cost
True RTM Cost
Verdict
Net Difference
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Frequently Asked Questions
Should I buy under-construction or ready-to-move property? +
It depends on your priorities. Under-construction (UC) property is typically 15–20% cheaper, offers a flexible payment schedule tied to construction stages, but attracts 5% GST on the agreement value. You also pay pre-EMI interest and rent simultaneously until possession, and Indian builders frequently delay delivery by 6–24 months, which erodes the price advantage. Ready-to-move (RTM) property costs more upfront but has no GST, no construction risk, no rent overlap, and you can inspect the actual unit before buying. If you need a home soon or want zero delivery risk, choose RTM. If you can absorb delay risk and want a lower entry price, UC can work — but budget for delays. Use the calculator above to compare your exact numbers.
Is GST applicable on ready-to-move property? +
No. Under GST law, ready-to-move-in properties that have received a completion certificate (CC) or occupancy certificate (OC) before sale are treated as immovable property, not a supply of service, so no GST applies. Only under-construction properties sold before completion attract GST — currently 5% on the agreement value for non-affordable housing (1% for affordable housing) without input tax credit. A ₹75 lakh under-construction flat attracts roughly ₹3.75 lakh GST, while an identical ready-to-move flat attracts none. Always confirm the project has received its CC/OC before assuming GST-free status.
What is pre-EMI in home loan? +
Pre-EMI is the interest-only payment you make on a home loan while your under-construction property is being built. As the bank disburses your loan in stages (linked to construction progress or a fixed schedule), you pay interest only on the amount actually disbursed each month — not the full sanctioned loan — and no principal is repaid. Once the property is ready and the full loan is disbursed, your full EMI (principal plus interest) begins. Pre-EMI can continue for months or years depending on delays, and none of it reduces your principal, which is why total pre-EMI outgo is an important hidden cost to budget for.
What is the risk of buying under-construction property in India? +
The primary risk is possession delay — Indian builders commonly deliver 6 to 24 months (sometimes years) behind the promised date, forcing buyers to pay pre-EMI interest and rent simultaneously for longer than planned. Other risks include builder financial distress or project stalling, quality or specification changes, litigation or title disputes, and cost escalation clauses. RERA registration helps — it mandates escrow of funds, project timelines and buyer compensation for delays — but enforcement varies by state. Always verify the project's RERA registration number, check the builder's delivery track record, and add a realistic delay buffer before committing.