Whether To Buy A Pre-Launch Or Ready To Occupy Apartment? Understand The Facts

Some prefer to buy a pre-launched property, whereas some like to buy a ready-to-occupy apartment. Bangalore is one such destination of India which is experiencing rapid growth and development. It indicates that investing; especially in the properties of Bangalore is undoubtedly a good choice for any investor. If you are willing to buy a property in Bangalore, you need to check the status of the construction stage of the property.

Moreover, you should understand the pros and cons of buying properties in different construction phases. You will find sharp price differences between the pre-launched and ready-to-move properties. Brokers may ask you to buy new launch projects in Bangalore. But before taking the final decision, you need to understand few facts which we will share with you.

• Price of the property: - If you opt to buy a pre-launch property, you will get it at a lower cost. It is because as at this stage, the developers want to sell maximum units to raise the funds or better to say to get an inflow of money. Hence there are opportunities to get a massive discount at this stage in addition to various other facilities. In the initial stage of construction, builders prefer to give massive offers to attract more people to invest. Whereas, a ready-to-move property is always available at a higher price with limited or Nil additional facilities. But here, you don’t need to wait a long time to get a handover. We have noticed that if you opt for an under-construction property, you will enjoy the benefit of cost reduction of up to 25 to 30 percent. But the waiting period is more than ready-to-move properties, and this can affect your finances.

• Tax benefits: - If you opt for a home loan, you need to opt for a ready property to get a tax benefit. You cannot avail of tax benefit for a home loan for an under-construction property. The home loan has several tax benefits when it’s a complete property. The interest amount will get a deduction under section 24(b) as per the income tax Act. Again, the principal amount will get a deduction u/s 80C. These deductions can be availed only for a ready-to-move property.

• Cost-plus GST: - In the case of ready-to-move property, you don’t have to pay GST. But if you avail for an under-construction property, you have to pay 12% GST.

Hence, whenever you want to buy a property, you need to pay attention to various aspects of the cost and taxes. You can ask your builder about the prices of pre-launce, under-construction, and ready-to-move properties. You also need to check the tax aspects. If the price of the properties you shortlisted suits your budget, you can make the down payment followed by making an application for a home loan with your preferred bank. If you want us to recommend the best real estate builders in Bangalore then we will insist you do a Google search and check real-estate builders' news. Visit the professional team of this builder to collect more information about the property specifications and rates.

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Created on Mar 7th 2021 23:56. Viewed 295 times.

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