Pune, being one of most sought after real estate destinations, houses numerous projects of both reputed and newbie developers alike. There is no dearth of supply in ready-to-move-in and under-construction flats. Due to the options of staggered payments and low cost of property, many people opt for an under-construction property instead of ready possession property without realising its financial risks.
Are you looking for a property to buy now? Reiterating, you would get plenty of options of booming localities like Wakad, Hinjawadi, Ravet, Baner, Tathawade, etc. However, there are advantages in choosing a ready-to-move-in property. The main disadvantage of buying under-construction property is a delay in projects. You are required to wait for the completion of the flats and amenities in the project.
Save on Rent
One of the perks of buying ready-to-move-in property in Pune is that you save on rent. Even if you do not plan on using it for the living, you can let the flat out on rent and start earning an income right away. It is a good option for those who cannot afford rent or EMI both together. Even, if you are not going to live in that property, you will start earning a side income through rent amount. With an under-construction property, the chances of delaying in possession are always high.
Avoid Project Delay
Ever Since the Real Estate Regulation & Development Act (RERA), 2016 came into force; developers are expected to adhere to timelines. Failing to meet the timeline can end up in penalties. Therefore, most developers are stating a deadline of 5-6 years on their project's agreements, websites and any other communication tools including a brochure. Typically, the deadline given by the developers is three years earlier. So, the developers have already made the provision of delay.
Get Rid of Uncertainty
When you buy a ready possession flat, the uncertainty about size, space, and view of the apartment and quality of construction is eliminated. It is worth to check the quality of construction and space and size as you are going to shell a hefty amount of your hard earned money into the property. A ready-to-move flat allows you to inspect the structure and quality finish of the apartment carefully. More often than not, the decisions made on the basis of a show-flat or layout plan can be misleading.
Waive Off on GST
Waive off on GST is one of the key perks of buying ready-to-move-in property. It is worth noting that 12% GST is applicable on under-construction property whereas no GST is applicable on most of the ready-to-move-in property. If you are buying an under-construction property worth ₹ 70 lakh, you will have to pay a GST amount of 8.4 lakh. In a nutshell, it reduces the overall financial outflow of the buyers.
Leverage Income Tax Benefits
As per Income Tax Act, 1961, Section 80C, a borrower can claim an income tax rebate on principal repayment of a home loan which has an overall limit of ₹ 1.5 lakh and up to ₹ 2 lakh for payment of interest under Section 24(b) for a self-acquired house.
These tax benefits can only be claimed once you get registration and ownership document after project competition. Thereby, no possession means no tax benefit against home loan repayment.
Moreover, selling out an under-construction property could be a tedious job unless timely delivery is assured from the developer and it is free of any legal battle. It is true that you have to shell out a little more on the ready-to-possession property, but the mental peace you get in buying it is endless. You will be satisfied, relax and peace of mind by taking this smart move. So, what else do you want?