If you are planning to buy an apartment, you must have come across this term, ‘ready to occupy’ quite frequently. Homebuyers often opt for a ready-to-move-in apartment over one that’s under construction due to the fact that there is no delay in possession. ‘Ready to occupy’ apartments make it easier for the buyer to plan ahead as it can be occupied immediately after purchase.
Let’s look at the top reasons to choose a ‘ready to occupy’ apartment.
One of the biggest risks in real estate can be eliminated when you own a ready to occupy apartment, which is the delay. Once you own your ready to occupy apartment, you need not wait for the completion of the whole project or its amenities for possession. Before the implementation of RERA (Real Estate Regulation and Development Act), builders used to promise an average time of 3 years for completion of the project. After RERA most developers have increased this to 4 to 5 years to avoid penalty.
You see what you get
Another advantage of a ready to occupy apartment is that there is no uncertainty about the features of the property such as quality of construction, space availability, view from the apartment, amenities, parking space, etc. Because of this, the whole buying process becomes much easier for the end-user, and they can be assured of the property they are purchasing.
Rental income or EMI
As ready to occupy apartments can be occupied immediately, the buyer always has an option to give the apartment for rent as soon as they purchase it. The apartment being brand new, there is a scope for better rental income as well. The best part about this income is that it can be used to pay off your home loan EMI.
Free of GST
The GST cost is applicable only on under-construction real estate projects. Therefore, if you opt to buy a ready to occupy apartment, you save the GST amount on your brand new home. When it comes to owning a home, this amount can be big enough to make a difference.
Deductions on tax
The income tax act of 1961 says that if you buy a home on loan, you can claim tax deductions with an overall limit of ₹1.5 lakhs to ₹2 lakhs under section 80C against the principal repayment of the home loan. You can start claiming tax benefits only after the completion and possession of the property. After possession, in five equal installments, you may claim the interest paid on a home loan during the phase of construction. In the event of delayed construction which takes more than 5 years to complete, your maximum deduction allowed on interest will be reduced to ₹30,000. The principal amount repaid during the construction phase is not eligible for any deductions.