Benefits of Purchasing Ready to Move Properties
Apr 10, 2017 Home Trading Steps
The real estate developers in the country have been experiencing a dispiriting business since the last couple of years. The skyrocketed property rates coupled with high interest rates on home loans are not helping the cause either. This slowdown in real estate has however affected most of the developers out there making them cash strapped in the process. Moreover, due to the shortage of funds and capital, developers across the country are invariably postponing the delivery of projects putting their allottees into complete jeopardy. In some projects across Pune, the delay in possessions is as big as three years. Due to this whole issue of delay in delivery of projects, home buyers have now started preferring ready possession properties or the one’s which are very close to delivery.
Recent statistics indicate that people are now willing to pay a bit more for ready to move in properties as compared to the one’s which will be ready in 2 to 3 years of time. This change of pattern in home buyer’s preference is a result of various troubles faced by home buyers due to the invariable delay in completion of projects. Also, many a times developer fails to keep up the promises of providing several amenities which further disappoints the home buyer.
Buying a property which offers ready possession or possession in six months time eliminates most of the aforementioned problems. Ready-to-move apartments are low-risk purchases as compared to under-construction projects as they are immune to risks such as price hikes, delayed schedules, unrealistic promises to name a few. However, with several no risk features in its kitty, ready-to-move apartments indeed come with a price. As per the prevailing market rates, properties which are very close to granting possessions are generally 25 to 30 percent costlier than the under-construction properties.
Let us find out how is purchasing a soon to be ready property beneficial for home buyers:
1.Minimal Risk: The properties which are offering ready-to-move possession would have got all of their civil work completed. You can analyze the whole project yourself and hence, the seller cannot scam you with unrealistic or false promises. Moreover, completed projects are approved by all the concerned government authorities and so there is little chance of delay in delivery of the project.
2.Saves a lot of your rent: If you are living in a rented apartment, then, properties which are nearing possession will indeed help you save a lot of your money on rent. Moreover, you can use this saved money to pay home loan EMI of your new home. For under-construction properties, people end up paying for EMI as well as house rent and the burden only increases if the possession of the purchased property gets delayed.
3.Tax Benefits: As per the Section 80C of the Income Tax Act, the principal repayment up to Rs. 1.5 lakhs can be deducted from your income against the home loan taken for ready-to-move properties. Moreover, the interest paid on Home Loan is eligible for deductions up to Rs. 2 lakhs per year. A home buyer can take advantage of these aforementioned tax exemptions only after acquiring possession of the property. So for under-construction projects, one needs to wait for its completion in order to get these tax benefits.
Recent statistics indicate that people are now willing to pay a bit more for ready to move in properties as compared to the one’s which will be ready in 2 to 3 years of time. This change of pattern in home buyer’s preference is a result of various troubles faced by home buyers due to the invariable delay in completion of projects. Also, many a times developer fails to keep up the promises of providing several amenities which further disappoints the home buyer.
Buying a property which offers ready possession or possession in six months time eliminates most of the aforementioned problems. Ready-to-move apartments are low-risk purchases as compared to under-construction projects as they are immune to risks such as price hikes, delayed schedules, unrealistic promises to name a few. However, with several no risk features in its kitty, ready-to-move apartments indeed come with a price. As per the prevailing market rates, properties which are very close to granting possessions are generally 25 to 30 percent costlier than the under-construction properties.
Let us find out how is purchasing a soon to be ready property beneficial for home buyers:
1.Minimal Risk: The properties which are offering ready-to-move possession would have got all of their civil work completed. You can analyze the whole project yourself and hence, the seller cannot scam you with unrealistic or false promises. Moreover, completed projects are approved by all the concerned government authorities and so there is little chance of delay in delivery of the project.
2.Saves a lot of your rent: If you are living in a rented apartment, then, properties which are nearing possession will indeed help you save a lot of your money on rent. Moreover, you can use this saved money to pay home loan EMI of your new home. For under-construction properties, people end up paying for EMI as well as house rent and the burden only increases if the possession of the purchased property gets delayed.
3.Tax Benefits: As per the Section 80C of the Income Tax Act, the principal repayment up to Rs. 1.5 lakhs can be deducted from your income against the home loan taken for ready-to-move properties. Moreover, the interest paid on Home Loan is eligible for deductions up to Rs. 2 lakhs per year. A home buyer can take advantage of these aforementioned tax exemptions only after acquiring possession of the property. So for under-construction projects, one needs to wait for its completion in order to get these tax benefits.
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