PROS

1. Immediate Possession

• You can move in immediately after registration.

• Ideal if you are currently renting in Chennai (saves rent + EMI overlap).

2. What You See Is What You Get

• Actual flat size, ventilation, road access, water supply, and surroundings are visible.

• Important in Chennai due to:

1. Water scarcity
2. Flood-prone zones
3. Narrow approach roads

3. No Construction Delay Risk

• No risk from:

1. Builder financial issues
2. Labour shortages
3. Approval delays (CMDA / DTCP)

Chennai has seen many delayed projects, especially in OMR & GST Road belts.

4. Rental Income Starts Immediately

• High demand in areas like:

1. Velachery
2. Adyar
3. Anna Nagar
4. Porur

You can rent immediately and generate cash flow.

5. Lower Legal Risk

• Usually has:

1. Completion Certificate (CC)
2. Occupancy Certificate (OC)

• Easier for bank loan approvals.

 CONS

1. Higher Purchase Price

• RTM properties cost 10–25% more than UC.
• You pay a premium for certainty and immediacy.

2. Older Construction Issues

• Many RTM flats in Chennai (10–15 years old) may have:

1. Seepage (common due to humidity)
2. Outdated plumbing
3. Poor waterproofing

Maintenance cost may be higher.

3. Limited Customization

• No flexibility in:

1. Layout
2. Tiles
3. Electrical points

• Renovation costs extra.

4. Higher Upfront Costs

• Full stamp duty + registration payable immediately.
• No staggered payment benefit.

UNDER-CONSTRUCTION (UC) PROPERTY

 PROS

1. Lower Entry Price

• Typically 15–30% cheaper than RTM.
• Attractive in developing corridors like:

1. Perumbakkam
2. Pallikaranai
3. Thirumazhisai
4. Kelambakkam

2. Flexible Payment Plans

1. Construction-linked payments reduce financial stress.
2. Better EMI management while renting.

3. Higher Appreciation Potential

• Value increases as:

1. Project nears completion
2. Infrastructure improves (Metro Phase-2, OMR expansion)

Good for long-term investors.

4. Modern Amenities & Design

• New projects offer:

1. Better parking
2. EV charging
3. Rainwater harvesting (important in Chennai)
4. Modern seismic & flood compliance

5. Customization Options

• Ability to:

1. Choose tiles
2. Electrical layout
3. Interiors (in some projects)

 CONS

1. Construction Delay Risk

Chennai builders often delay due to:

• Approval issues
• Monsoon flooding
• Labour shortages

A 2–3 year project may extend to 4–5 years.

2. Double Financial Burden

Paying:

• Rent
• EMI (partial or full)

Can strain monthly finances.

3. Uncertainty in Final Output

• Flat size, open spaces, amenities may differ from brochure.
• Common complaints:

1. Reduced carpet area
2. Delayed amenities handover

4. Legal & Approval Risks

• Some projects lack:

1. Proper CMDA approvals
2. Clear land titles

• High due diligence required.

5. No Immediate Rental Income

• Investment remains locked until possession.

CHENNAI-SPECIFIC FACTORS TO CONSIDER

Flood Risk

• RTM lets you verify flood history.
• UC projects may promise drainage but reality differs.
• Areas to check carefully:

1. Pallikaranai
2. Velachery
3. Medavakkam

Water Availability

• RTM shows actual borewell/tanker dependency.
• UC projects often overpromise water supply.

Infrastructure Impact

• UC near Metro Phase-2 corridors has high upside.
• RTM in established localities gives stability.

WHICH SHOULD YOU CHOOSE?

Choose READY-TO-MOVE if:

• You want immediate possession
• You are risk-averse
• You need rental income now
• You are buying for self-use

Choose UNDER-CONSTRUCTION if:

• You have time (3–5 years)
• You want capital appreciation
• You can handle some risk
• You prefer modern amenities

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