Real estate is one of the fastest-growing industries in India. Maybe it is the only sector that recovers the loss so quickly. So, this industry is the talk of the town now. On the other hand, buying a home is a dream for many of us, and many times we want to close the deal quickly which leads us to a wrong decision. Buying a home requires a lot of research work. In this blog, I will inform you why investing in under-construction flats is way more beneficial. Keep reading to make a wise decision and connect with Realtech Nirman any time for affordable housing in Newtown.
A. Benefits of investing in under-construction flats:
1. Freedom of choice of under construction flats :
Under construction flats give the buyer the freedom of choosing the amenities of the flat or the tiles, flooring, etc. which will help you to live in your dream home.
2. Cost-effective of under construction apartment :
Most of the builders offer a lower price when it is under construction. Many times they also give discounts as well. On the other hand, when the project nears completion, the demand and the market value of the property are bound to increase. This means it is a win-win situation. You can customize your property and you will get it at a lower price as well. Connect with Realtech Nirman if you are planning to buy a property in Newtown. They have several ongoing projects.
3. Better construction of flats:
Look we all know that with time, real estate properties get older and the constructions get weaker, no matter how great the construction quality is. So, when you book an under-construction project, you get enough years to enjoy it. You will not need to worry about maintenance. Moreover, you get to enjoy the latest amenities and facilities available.
4. It is an investment for under-construction flats :
An under-construction means that the area is growing. You can expect high returns on investment when the property appreciates and nears completion. You could rent out the flat or sell it for a profit. So, it will make an alternative income option for you and will secure your future too.
5. Less worry about payment issues:
During the construction period, you will get flexible payment plans. For example, you can book the flat with a token amount and will pay the rest of the price till the time you get the flat. On the other hand, you will not get this benefit for the complete projects. In that case, you have to pay the full price. However, you can take a home loan and later, you will pay through EMIs.
6. Best technology & design:
Most of the time or I can say all the time builders try their best to provide the latest technology and architecture in their latest projects. These properties are built and designed to be energy-efficient, eco-friendly, and equipped with smart and luxurious spaces. However, for the older projects, you will not be able to get this facility at all. These updated technologies or amenities will help you to put it on rent or to resell it easily. It will also provide you with an easy life.
7. Legal aspects:
In the real estate field, legal aspects and validity play a huge role. If your property does not have all the legal papers and clearances, it is a waste of money. So, aware buyers pay a significant amount of time in checking the legal factors of the chosen property and it gets easier if you buy an under-construction property. Now you must be thinking how does an under-construction apartment help you ensure that its titles are legally valid? The simple answer is RERA – the Real Estate (Regulation and Development) Act. As per the mandate by RERA, if the property has obtained an occupancy certificate by May 1, 2017, it must be registered under the RERA of the respective state.
RERA registration is an ultimate assurance from the government. What is more, you can check the details of the projects as well as their legal aspects on the RERA website of the state where the property is being constructed. In this context, let me inform you that every project of Realtech Nirman gets all the approvals from the authorities which makes them secure for investment and for getting a home loan too.
8. Tax benefits:
Do you know that you will get a huge tax benefit if you invest in an under-construction flat? Yes, you heard it right. As per Section 24 B of the Income Tax Act 1961, up to Rs. 2 lakh can be waived off per financial year on an under-construction home.
The same can be deducted from the home loan’s interest rate. Section 80 C of the Income Tax Act further waives another Rs. 1.5 lakh, which can be deducted from the home loan’s principal amount. Another Rs. 50,000 can also be deducted as per 80EE of the Income Tax Act 1961, provided that the limit set as per Section 24 B has been reached.
B. Risk factors of investing in an under-construction flat:
Everything in our life comes with some pros & cons. There is no such decision that does not have a risk side.
Investing in an under-construction flat can be risky if you move in quickly. You have to give ample amount of time to the builder to finish the work as per their plan. So, think about this factor before the investment
Another risk factor is the delay in the handover process. Many times, builders do not keep their word and they cause delays. However, if you choose reputed builders like Realtech Nirman, it will not be an issue for you.
Some common FAQs
Under construction apartments near me
What are the criteria I look for before investing in an under-construction property?
You should check the reputation of the builder first. Many builders put an unrealistic deadline and later they fail to deliver the project on time. After checking that, you should check the legal factors such as whether it is registered under RERA or not. You can also check the history of the land on the state land website. If everything looks good, you can invest in it.
Why do people avoid under-construction flats?
Most of the time people tend to avoid the under-construction flats due to fear of waiting. They tend to invest in ready-to-move flats which gives them instant happiness.
Is it good to invest in an under-construction property?
It’s best actually. You can check the construction quality directly. You will be able to customize the flat according to your needs and choice, you will get it at a lower price, and you will enjoy tax benefits and easy payment options too. Do you know that one can avail up to a 30% discount in comparison with a completed project including tax benefits? What else do you need in life?
What are the tax benefits of investing in an under-construction property?
According to Section 24 B of the Income Tax Act 1961, up to Rs. 2 lakh can be waived off per financial year on an under-construction home.
The same can be deducted from the home loan’s interest rate. Section 80 C of the Income Tax Act further waives another Rs. 1.5 lakh, which can be deducted from the home loan’s principal amount. Another Rs. 50,000 can also be deducted as per 80EE of the Income Tax Act 1961, provided that the limit set as per Section 24 B has been reached.
Is there any chance of getting coned by the builder if I invest in an under-construction flat?
If you hire a reputed builder then there is no chance of getting conned. I would advise you to check all the social media handles of the builder and also ask their previous clients to get the real scenario.
Ready-to-move-in home or an under-construction home, which one is better?
Well, it depends on the individual. If you are ready to wait and you have an alternative place to live then you should invest in an under-construction flat. An under-construction flat gives you freedom, tax benefits, great construction, latest amenities & so on. However, this is not possible for everyone and in that case, they go for the ready-to-move flats which is also fine.
How can I get rid of GST in an under-construction flat?
Under-construction properties are expected to pay GST, however, ready-to-move-in properties are exempted already. Don’t worry, in that case, you might work out a deal with the developer (if they agree) to get GST waived on a property that is still under construction. In this manner, your deposit will seem to the developer as a loan. They refund the loan with interest once the property is finished and receive a completion certificate. In this manner, an under-construction property can qualify for a GST exemption.
Do you know that investing in an under-construction flat can be your best decision ever? Yes, it is. Read this blog to know it better and invest wisely. Buying the right property can secure your life. However, it would help if you planned it in the right way. Invest in an under-construction flat to get the best benefits. Connect with Realtech Nirman for more assistance.
