By Dhiraj Bora
One of the first options to make if you are looking to buy a home is whether to go for a ready to move in property or a flat in under construction properties in India. The option will primarily rely on the condition and level of your finances and needs. Both property types have their own perks and drawbacks.
The chance of a ready to move property in India is almost zero and before you buy it, you can cross check any truth and fiction, fitting and faucet. Here are some aspects of your finances and lifestyle that can help you make a choice between being ready to move in and building property:
Check your financial preparedness
Do you have a major savings chunk and are you all set to make an investment? If yes is the answer, go for a ready-to-move property in India. On the other hand, if you have found a good location and a good house, but you may need a couple of years to work on your finances to become ‘real estate ready’ in India, go for under construction properties. To make the down payment, secure a loan and take a few years to save, you can stress yourself financially a little bit. By then, the property will be ready and the EMIs will begin.
Assess your urgency
If you live in a rented apartment and are searching for a property to purchase, a ready-to-move home could serve the purpose and help you save on rents, although it could cost you a little more. As witnessed by many home buyers caught up in project delays, waiting for under construction properties in India while paying rent is frustrating.
Check location & property
If your investment is in an area that is all set to grow, while the ongoing project in India is being built, it would be wiser to go for it. As the property is being developed, services, accessibility, shops, schools and other facilities can catch up, making it an easy ride for you when you move in later. If you move into the property before the area is fully built, with any small purchase and bad access roads, you will have to live through the tough stage where travel is needed. In the meantime, property prices could pick up, raising the investment’s capital value.
Check tax implication
In compliance with Section 24 and Section 80C of the Income Tax Act, when you buy a ready-to-move house, the principal of Rs 1.5 lakh charged is deducted from revenue. The interest paid is also entitled to a deduction of up to Rs. 2 lakh. But if you purchase a property under construction, you can only assert tax deductions until the property is turned over to you, in five instalments over the next five financial years.
The author is a Head Marketing & Corporate Communication, Paramount Group