Most buyers spend a lot of time choosing between ready-to-move-in and under-construction properties. While ready homes offer you the advantage of immediate ownership, under-construction homes may allow you to gain from discounts offered by the builders as well as a home loan in installments, which you may find easier to repay.
However, whether you want to buy an apartment in Dosti West County in Thane, Mumbai or invest in a high-end smart home for yourself in Puranik Grand Central in the same location, here are 5 reasons to consider a ready-to-move-in property over an under-construction home.
1. You can put your money to the best use today
If you are ready to move into a home and have money for the down payment and other associated fees and charges, it makes total sense to invest it in a ready property right away. Moreover, if you wish to invest in an under-construction property, you never know how many delays you will have to put up with. Also, it is in human nature to spend the money that you have in hand during emergencies and to meet other short-term requirements. So, save yourself from compromising on a good home and put the money to best use by investing in a ready-to-move-in property.
2. You can reduce your income tax liability
If you take a loan to purchase a ready-to-move-in property, you can also enjoy home loan tax benefits to the fullest. As per the IT Act rules, in case of an under-construction property, you cannot claim tax deductions immediately, but have to wait for 5 years starting from the time you borrowed the home loan or until you get possession of the home. Also, in this case, you can only enjoy tax deduction on the interest paid in the pre-construction period. There is no tax benefit for the principal repayments on your home loan. If in case your builder delays or stalls the construction beyond your 5-year timeline, your interest benefit will sharply decline to just Rs.30,000 as against Rs.2 lakh. So, if you don’t mind the location, size, and other amenities of the space, your best bet would be to invest in a ready property so that you can start enjoying immediate tax benefits.
3. You can save on the Goods and Services Tax
If you invest in an under-construction property, you will attract GST as high as 12%. For instance, if you are buying a luxury apartment worth Rs.75 lakh then the 12% GST would sum up to Rs.9 lakh. Add stamp duty, registration fees, and other associated expenses like interiors, furniture, and shifting costs to this amount and you would be spending a fortune! Alternatively, you can simply buy a ready home and save on GST. This is because the ready-to-move-in properties do not attract GST if their completion certificate during purchase has already been issued.
4. You can gain immediate possession
if you invest in an under-construction property; you’ll have to wait anywhere up to 5 or more years before finally taking possession. In case of delays and construction stalls, the waiting period may extend even beyond the timeline. Alternatively, if you invest in a ready-to-move-in property, you can take immediate possession and become a homeowner today with ease.
5. You can avoid rental outflow and save your funds for better use
If you are considering an under-construction property when you currently stay on rent, you will have to continue to pay the rent till the construction is complete. This way, you not only pay the rent, but also EMIs, which may strain your finances. To avoid this and maintain your financial health, consider investing in a ready-to-move-in property. Though the EMI amount may be higher than the rent you were previously paying, you will still save a significant amount, which you can invest or use for better purposes.
Keeping these 5 reasons in mind, start your property search right away! Make your purchase even more economical by applying for a home loan with Bajaj Finserv Homes & Loans and enjoy a significant loan amount as high as Rs.3.5 crore at competitive interest rates. Bajaj Finserv Homes and Loans also offers other services such as in-person home searching assistance, property dossier, and documentation assistance to hasten your home buying process. To get started today, check out your pre-approved offer to view your personalised deal and hasten your approval process.