India has one of the most dynamic real estate markets in the world, and there is a wide variety of properties for buyers to consider, both in commercial and residential segments. There is no dearth of supply in the market when it comes to properties for purchase, as developers keep on introducing new projects every now and then.
Given the vast multitude of options available, home buyers are bound to end up in confusion and dilemma regarding what to buy. While most people choose to base their home buying decision upon various factors right from money to personal needs, a special preference within the residential real estate sector is noticed, with regards to ready-to-move projects.
Ready-to-move projects, as the name suggests, are real estate projects that have been completed by the developer and all the documents (for e.g. occupancy certificate, completion certificate, etc.) for the same are in place too.
So, what is that makes ready-to-move houses popular with potential homebuyers?
Advantages Of Buying Ready-To-Move Houses
You Get What You See:
One of the most significant advantages of ready-to-move houses is that homebuyers are aware of exactly what they are receiving as a part of the purchase deal. Before purchasing such a property, homebuyers get to carry out a proper inspection of the property. The decision of whether or not they wish to buy an apartment is not based on some sample flat or layouts, but the original apartment itself. Therefore, there is no question of doubt about factors such as the size of rooms, quality of construction, amenities available or view from the apartment, for that matter.
Getting to check out the property in person also gives one an idea about the kind of neighborhood it is located in, infrastructural benefits around, connectivity options, and so on. This further assists the buyer to make a well-informed decision.
The fact that ready-to-move apartments are available directly for occupancy is what basically defines them. Once the deal is done, people can move into the apartment right after. Ready-to-move apartments thus serve as appropriate options for people who wish to save on rents.
Even if you do not wish to move in immediately after buying a new house in Bangalore, or any other city for that matter, you can choose to use it for investment purposes, by putting it on rent for instance. The rentals you thus earn can be used to pay off EMIs, if you have taken a loan, and boost your returns. Researching about the pricing or rental income trends in the locality, and upcoming infrastructure in the neighborhood can aid you in estimating the plausible escalation in the capital in the times to come.
With ready-to-move houses, you can even choose to sell off your property, if such a need were to arise.
Free From GST
Ready to move flats are exempted of GST, which implies that GST rate on ready to move flats is not applicable. This is another great advantage of buying such a residential property, in the present times. That being said, buyers of ready-to-move houses benefit of reduction of the overall financial outflow. With a GST rate of 5% applicable on under-construction properties, having to pay no tax on ready-to-move flats is definitely huge.
Tax Benefit On Home Loan Repayment
As per the Income Tax Act 1961, borrowers are eligible for claiming a deduction against principal repayment that has an overall limit of Rs. 1.5 lakhs under Section 80 C, and up to Rs. 2 lakhs for interest payment under Section 24 (b), for a self-acquired house respectively.
However, the catch here is that individuals are only eligible for the tax deduction if the construction of the property is complete, and documents related to registration and ownership for the same, are in place. This basically means that unless borrowers have possession of the property, as they cannot claim any tax benefits against home loan repayment.
In addition to all of the above, let’s just say that buying a ready-to-move house is a safe bet since there is no extra hassle related to delay in project delivery for whatever reasons.