Buying a home of your choice involves a lot of planning. For instance, if you wish to buy a flat in Pune, you will surely have plenty of choices in terms of price, location, amenities, and more. Be it Shapoorji Pallonji Joyville in Hinjewadi or the Avon Vista in Balewadi, you will have to base your home buying decision on varied factors such as proximity to your workplace and children’s schools and colleges, as well as on whether these properties are pre-approved by your home loan lender for quicker financing. If you are considering whether a ready-to-move-in or under-construction property is right for you, take a step back and give it some thought.
Here are some reasons why ready-to-move-in properties may be your best bet.
1. You can save significant amount basis GST exemption
When you invest in an under-construction property, you will have to pay as much as 12% GST. For instance, if your property costs around Rs.50 lakh, you will end up paying GST of Rs.6 lakh. However, a ready-to-move-in property attracts no GST if already has the completion certificate at the time of sale. Hence, you can save the money and put it to better use. With such savings, you may make a prepayment on your outstanding home loan and reduce your interest outflow, buy useful appliances or do up your home with ease.
2. You can see the fully completed property to take the right decision
Many under-construction properties may look different on completion. However, there is no such risk in a ready-to-move-in home; you get what you see. Since the construction is complete and the property is ready in all aspects, you can get the feel of the space and then decide to buy or not. Also, you may speak to other investors or residents for feedback to ensure that the property is as per your needs.
3. You don’t have to put up with project delays
An under-construction property runs a high risk of delays in completion. To prevent builders from stalling projects and to reduce the impact of such delays, the RERA Act requires them to pay compensation or make a refund for delays in the projects. Builders have to pay interest equal to the SBI’s highest MCLR plus 2% within 45 days of the completion becoming due. Still, builders register an extended timeline to complete their projects. Delays have a cascading effect: you will not only get late possession, but you will also pay additional rent and increased interest on your home loan. Instead, when you buy ready property, you will not have to face such consequences.
4. You can start claiming tax benefits immediately
Claiming tax deduction on ready-to-move-in properties is clear and simple, but not when it comes to under-construction properties. As per the tax rules, you can claim interest on a home loan up to Rs.2 lakh under Section 24(b) and principal up to Rs.1.5 lakh under Section 80C. However, the principal portion is not eligible for tax deductions in case of under-construction properties. The pre construction interest, on the other hand, can be claimed as a deduction on completion of the project in five equal instalments, subject to one condition: The construction of the property should be completed within 5 years of availing the loan. If the builder delays beyond this, you can only claim an interest of up to Rs.30,000 as against Rs.2 lakh. If you wish to avoid this spiral of taxes, it is best to buy a ready-to-move-in property.
5. You can get immediate possession or rental income
In case of an under-construction property, you will have to wait for the construction to get completed. On the other hand, if you invest in a ready-to-move-in home, you can take immediate possession of your home or rent it out. This helps you put your money to best use right away.
After learning about the benefits of a ready-to-move-in property over an under-construction property, you may now have a clear mind to go ahead and initiate your buying process. Start by applying for a home loan with Bajaj Finserv Homes & Loans to enjoy an amount of up to Rs.3.5 crore at reasonable interest rates. Apart from this, you will also enjoy in-person assistance to find the right home, documentation assistance and a property dossier as well.
To benefit from all such features and enjoy quick loan approval, check out your pre-approved offer. You are just a few clicks away from acquiring your ready-to-move-in property with a customised deal on home finance!