One of the pertinent questions that most homeowners face and bothers while making a new investment in residential segment of the real estate industry is whether to invest in ready to move in flats or book it while it still under construction. Now since there are financial aspects to a real estate investment, people try to judge it primarily on these grounds, and then with the second big criteria, the income tax implication.
Most of the people have heard of a very common saying, ‘One in hand is better than two in the bush’. For those who abide by the option of under construction properties, they have to accept the presence of the inbuilt risk factor of whether the builder will at all hand over the possession as promised. Delay in possession, if not default from the builders is kind of a rule that holds true in the real estate market. As opposed to this, when one takes the decision of investing on ready to move flats Gurugram, does not have this particular risk involved. One gets the immediate gratification for the money that has been invested. If one follows the current ongoing trend in the real estate development segment, every second guy at random turns out to be a builder without even having adequate financial resources. Not just due to financial problems, but also litigation issues will have a deep impact on the completion of the project in due time.
Since most people invest their life long savings on residential houses or even plan to do so through EMIs, it is advisable not to risk it for a small difference, especially when it is to select whether to move in ready flats or to go for under construction projects. In contrast to the risk factors involved in booking the under construction properties, the ready to take possession flats offer another benefit. For those who do not have any idea when they need to shift or have the intention to shift in their new house soon, they can save the rentals for the time being. For those who want to buy houses as an investment in life, the ready made flats can start generating immediate returns for them as well.
Apart from the financial implications, there are some tax issues as well while going for ready to move in flats against the under construction ones. Generally, people apply for home loans while investing in real estate. But these loans are granted only for projects that have been completed and possession has been taken over. In respect to the interest that is being paid, the income tax allows claiming equal to the five first installments from the beginning of the year. So apart from the risk of delay involved in under construction properties, one also carries the risk of reduced income tax benefits in case of construction is not completed within three years.
As far as the builders and developers Gurugramhave got to say about both these types of properties, they believe that both of them have benefits of their own. But while selecting, it is the owner who needs to select which type of investment will suit their financial portfolio in due course of time.
The debate between the ready to move in flats and under construction projects is age old, and there’s no definitive answer to this. Depending upon several factors the decision needs to be taken by consumers.
Ramesh Tewari is a renowned builder and have got some successful projects under his name. In this article he states the reasons why Gurugram keeps finding new investors for the newer projects.