Buying a home is one of the top priorities of middle class families. In the city of Gurgaon the most preferred choices in terms of residential real estate investment is apartment, row houses and then villas. When you decide to buy an apartment, you will have to normally make a choice between ready to move apartments and Under Construction Properties.
What is an Under Construction Property?
The under construction apartments are those whose constructions are not yet complete, however, they are available for sale.
Benefits of Investing in Under Construction Projects
There are several benefits of purchasing under construction flats and some of these benefits are listed below:
1. Cost Factor
If you are not in a hurry to move in to your own apartment, choosing the under-construction home is a great option in terms of savings. The primary reason for this benefit is that the developer puts forth several offers during the launch phase. Moreover, you can also avail the early bird or the early launch discounts as well as other benefits.
2. Flexible Options for Payment
When you are purchasing a ready to move property, you will have to make the entire payment at one shot, however, the Under Construction Properties, provide great flexibility in terms of the payments. If you are a home buyer, you can pay in advance to book your home. You can pay the remaining amount in instalments as the construction progresses.
3. Personalization and Customization
Home is an extension of your personality. Therefore, it should ideally reflect your aesthetics. When you buy a ready to move apartment, you do not have any say regarding its layout or the interiors even if you are ready to pay a premium amount for it. This is however, not the case with the under-construction apartment. This allows you to give your future homes a touch of personalisation. You get to choose the fixtures, finishes etc. Therefore, you get to live in a home that is designed in a way that caters to your needs and preferences.
4. Growth and Appreciation
One of the primary benefits of choosing Under Construction Properties, is its potential for growth and appreciation. Once the project is launched, it takes around 2 to 5 years for a project to get completed. By this time there is a lot of infrastructural development in the surrounding areas of this project. As a result the value of the property appreciates and as an early investor, you are able to enjoy its benefits.
5. Legal Aspects and Validity
When you have decided to buy a home and the location and the developer is finalised, the most important thing that you have to check is the legality of the property. The question that might come up here is how does an under-construction property help you to ensure that the titles are legally valid? The answer for this is RERA Certification. It is mandatory to register with RERA to get all the necessary government approvals. This helps you to judge the legality of the under construction property. You can check the legality of the project in the RERA website
6. Tax Benefits
When you invest in under construction projects, you will be able to get certain tax benefits. According to Section 24B of the Income Tax Act, there will be a waiver of up to Rs. 2 lac each year till the construction is completed. This can be deducted from the interest rate of the home loan. The Section 80C of the Income Tax Act waives of another Rs. 1.5 lac that can be deducted from the principal amount of the home loan. Section 80EE of the income tax act gives you a rebate of Rs.50,000 only if the limit of the Section 24B is reached.
Conclusion
When you invest in pre-launch or under construction properties, you are able to get a lot of benefits. This includes better discounts, resale profit, customisation and quicker completion of project. It is true that these advantages make under construction projects a very attractive option for investors and homebuyers, however, it is important to make decisions considering factors like the potential success of the project, the builder’s reliability and the risk tolerance.