March is an ideal time for homebuyers to make the move of buying their dream home. But why march? And more importantly, why is this the perfect time to buy a home? If you are considering purchasing a home, it’s worth looking at why this time of the year might be the best time for you to make the leap.
Price Discounts on Luxury Homes
The summer season starts in April, and many people prefer to avoid buying or moving during this time due to hot weather and school exams. As a result, the demand for real estate tends to reduce in March. To tackle this particular behaviour pattern in buyers, developers may lower the prices to attract buyers.
This reduced demand in the real estate market might increase competition among developers. To stand out from others, be noticed by buyers, and be effective in the market, they may offer discounts or attractive deals to generate interest and boost sales.
This is why real estate prices tend to be lower in March. Homebuyers can use this reduced demand for a better deal on their dream home. However, it’s important to thoroughly research, consult a real estate expert, and evaluate all factors before purchasing a property.
End of the Financial Year
If you are planning to buy a home, you will get the best discounts, special offers, and freebies during this time. Since Tamil New year falls in April and March marks the end of the financial year, it will be the ideal time to save money with offers and buy your dream home on a deal for a significantly reduced price.
Tax Benefits
Since March is the end of the financial year. Homebuyers can take advantage of several tax benefits during this time of the year. Doing so can significantly reduce the overall cost of purchasing a home. Here are some of the tax benefits to plan your purchase accordingly,
- Deduction on Home Loan Interest
If you have taken a home loan to purchase a property, you can claim a deduction of up to Rs. 2 lakhs on the interest paid on loan under Section 24 of the Income Tax Act. However, this deduction is only applicable when the construction of the property is complete and available for possession.
- Deduction on Principal Repayment
Under Section 80C of the Income Tax Act, you can claim a deduction of up to Rs. 1.5 lakhs on the principal repayment of your home loan. This deduction is available for both self-occupied and rented properties.
- Stamp Duty and Registration Charges
Homebuyers can claim a deduction on the stamp duty and registration charges paid for the property purchase. The deduction is available under Section 80C; the maximum limit is Rs. 1.5 lakhs.
- Joint Home Loan
Suppose you have taken a joint home loan with your spouse. In that case, both of you can claim tax benefits on the interest paid and the principal repayment of the loan separately. This can increase the overall deduction available to you.
- Capital Gains Tax Exemption
Suppose you have sold a property in March and invested the returns in a new property. In that case, you can claim a deduction on the capital gains tax under Section 54 of the Income Tax Act. The Central Board of Direct Taxes has extended the investment cut-off date to save on capital gains tax to March 31, 2023, which will help owners who have recently sold their immovable property.
So March has the privilege to offer several tax deductions and exemptions. Homebuyers can use this opportunity to save money on their purchase. It is essential to consult a tax expert or a financial advisor to understand the tax implications of buying a home and to make the most of the available tax benefits.
