People Prefer a Ready-to-Move in House over an Under-Construction One

When considering buying a house, it can be a tough choice. Because one has to choose between a ready to move in house or an under construction one.

PRICE POINTS

Where in cases such as property type, location, size are the same and neighborhood, a ready-to-move house usually costs more. A ready to move in house gives you an opportunity to stay quickly and save rent. However, an under-construction house costs less. But, opting for this house means that you pay interest on home loan along with rent for the present accommodation.

TAX EDGE

According to experts, the first house must be bought early in life in order to save rent and benefit from tax deductions. Whilst on the other hand, for an under-construction house, it is not easy to claim tax deductions.

SERVICE TAX

A builder when sells a property in a group housing project until it is ready to be occupied, service tax of 12.36% will be imposed on a part of the price. However, there will be no tax of this kind if in case the property's carpet area comes up around 60 square metres.

Moreover, for properties which are valued around Rs. 1 crore and not exceeding in area around 2,000 square feet, the service tax will be effective on only 25% of the value. Hence, the actual service tax rate will be 3.09%.

For more articles on real estate updates and news go through Sovereign Developers Reviews blogs.