When it comes to buying a property, you have two major options: under-construction or ready-to-move-in. Here are some ready to move in and under construction home loan tax benefit and cons:
Under-construction property:
Pros:
Lower costs: Generally, under-construction properties cost 10-15% less than ready-to-move-in properties.
Customization options: You can customize the property according to your preferences.
Potential capital appreciation: The value of the property may increase by the time it is completed.
Payment flexibility: You can pay for the property in installments.
New construction: The property will be brand new and you will be the first occupant.
Special offers and discounts: Developers may offer special deals to attract buyers.
Cons:
Delay in project completion: The project may be delayed due to various reasons such as lack of funds, legal disputes, or natural calamities.
Taxes: You may have to pay taxes on the property even before you take possession.
Construction discrepancy: The final construction may not match the original plan.
Ready-to-move-in property:
Benefits of Buying Under Construction Property:
Instant availability: You can move in immediately after purchase.
Transparency: You can see the property before you buy it.
No GST applicable: You do not have to pay Goods and Services Tax (GST) on ready-to-move-in properties.
Reselling and renting: You can rent or resell the property immediately.
Cons:
High cost: Ready-to-move-in properties are generally more expensive than under-construction properties.
Absence of RERA regulations: The Real Estate (Regulation and Development) Act, 2016 (RERA) does not apply to ready-to-move-in properties.
Age of the property: The property may be old and may require maintenance.
It is important to note that the tax benefits of having a property purchased by the husband in the name of the wife will differ according to their ownership stakes. Your wife can also deduct the entire amount of interest paid on a house loan if the purchased property is rented out. Both of you can also claim deductions up to ₹2 lakh under Section 24 for interest payments on your home loan. Lower interest rates on home loans are also available for women borrowers. I hope you got an idea of the pros and cons of under construction or ready to move property.
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Should We Buy an Under Construction Apartment or Ready Possesion? What are the Pros and Cons?
prashantc
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5 Year
2020-08-27T15:17:46+00:00 2023-11-18T17:35:18+00:00Comment
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