When you’re considering buying an apartment, you have two broad options in front of you: you can either invest in a property that’s still under construction or buy one that’s ready to move in. Most people believe that investing in a property which is still being constructed is a wiser decision since their prices are generally lower and you can add customizations sometimes. However, this isn’t always the case. There are plenty of reasons why investing in a fully-constructed house makes the most financial sense.
What you see is what you get
One of the biggest drawbacks of investing in a property that’s being constructed is that there’s no way to know for sure what the final project will look like. All you have to go by are mockup illustrations provided by the builder, however these are clearly far from realistic. Even model apartments don’t give you a full idea of what to expect. These apartments are made with the highest quality decor and fittings to entice you into buying the apartment. The final apartment almost never looks exactly like that.
With a ready-to-move apartment, on the other hand, you know exactly what you’re investing in, so you can spot your dream home and buy it. This has many advantages that will actually help you save money. Many under-construction apartments promise to add fittings, but sometimes they don’t. If this happens to you, or if you’re not happy with their quality, then you need to spend additional money on buying new ones. You can avoid all of this in a constructed apartment and save money.
Amenities are already available
Today, a swimming pool, gym and clubhouse are some of the amenities every apartment should have. However, these amenities aren’t always completed at the same date when you get the keys to your new house. It isn’t uncommon for some people to wait years until their swimming pool is even functional. However, regardless of whether it’s completed or not, you will be required to pay maintenance charges for these amenities.
In a completed project, you will be able to see the status of these amenities and take the call over whether you want to invest in it or not. This means that you won’t have to unnecessarily spend money paying for amenities that do not exist.
Income tax benefits
One of the reasons why people invest in houses is so they can get tax breaks on their home loans. Payment of home loan interest up to Rs. 2,00,000 under Section 24 and principal amount on the loan up to Rs. 1,50,000 under Section 80C can be claimed for tax deduction. This means you can save money every month on taxes. However, what many people don’t know is that these tax breaks are available only once the house is ready for possession. If you’re buying an apartment that’s still under construction, then it could be a long time until these tax benefits kick in. With apartments still under construction, there’s also the uncertainty of not knowing for sure when it will be completed. While developers give you certain estimated dates, they don’t always stick to them. This is especially true of smaller builders.
By investing in an apartment that is ready to move into, you can take advantage of these tax breaks immediately. This means that you’ll be saving up a lot more money every month on your taxes.
Saving on rent
If you’re a first-time home buyer and you’ve invested in a property that’s still under construction, then chances are you’re going to be paying money every month on your rent as well as the EMI on your home loan. Again, the period of time you’ll be paying this double amount for is uncertain. If your developer takes longer than promised to hand over the apartment to you, then you’re going to be wasting a lot of money on rent every month.
When you invest in a ready-to-move apartment, you can immediately stop paying rent. Paying EMIs make a lot more financial sense than paying rent, because this money is going into your own home. If you calculate the amount of rent you’d otherwise have to pay by living in a rented house, then you’d see how buying a fully-constructed flat is a more prudent investment.
If you’re ready to make your dream of becoming a homeowner come true, then invest in Chennai’s best range of ready to occupy apartments in Chennai by Lancor. Our completed apartment projects such as Lumina in Guduvanchery and TCP Lakefront in Sholinganallur, OMR are the finest examples of high-quality construction and top amenities. Enquire now with Lancor to know more about our projects.