Buying Flat vs Buying Site & Constructing The House

            Buying Flat vs Buying Site & Constructing The House:

Whether you are building a new house, moving into a new flat, or even wanting to purchase a new house/flat in a dream it is a sign of bigger and better things for your life. 

Let’s explain this with a clear comparison between buying a Site and choosing a flat:

Buying a Site:

v  A typical 30 x 40 Site will cost you around Rs.25 lakhs in and around Navanagar. Which means you will still need to fund  Rs.10 Lakhs as your initial contribution.

v  The EMI for Rs 15, 00,000/- (25 lk -10 lk) will be Rs.13,017 /- per month and as per the bank’s guidelines you have to construct your house within two years.

v  If you don’t construct within two years, the loan will be treated as a mortgage loan with higher interest - EMI will be more.

Constructing a home:

v  To construct your house you will need an additional loan, let’s say around Rs 15 lakhs and  6-8 months time required to construct a simple two-bedroom house.

v  After you construct the house and move in, your EMI will be Rs 13,017 for the Site, plus Rs 13,017 for the home loan (i.e. for constructing the home) total comes to Rs.26,034/- approx.

v  This is just for the ground floor home that you want to stay in. You will still need extra money for the first and second floors.

Now let’s see what happens when you buy an flat from our trusted partner:

v  The cost of a 2 BHK flat is around Rs.29,16,000/- (i.e. 2700 *1080) we’re offering you well-planned built-up areas of around 1080 square feet.

v  For this flat, you will be eligible for a loan amount of 80% of total cost of the flat. (Your own contribution will be just Rs 5,83,200/- to start the process).

v  Your EMI for remaining Rs.23, 32,800/- will be around Rs 20,245 per month.

Here’s what you need in hand if you’re buying a flat, or a 30x40 Site in Navanagar:

v  For a Site - you will need to have Rs.10,00,000/-

v  For a flat - you will just need Rs 5, 83,200/-.

Let’s look at the other benefits of owning a flat from our trusted partner:

Ø  All title deeds, paperwork and approvals are clear, and can be inspected by you before purchase.

Ø  Each project has detailed plans for living spaces, utility areas, common areas and parking.

Ø  Design, planning and construction is done by an experienced team that ensures the best inputs in terms of men, processes and materials.

  

Amenities:

Ø  Three common lifts will be provided with Battery backup.

Ø  Solar water system is provided for hot water.

Ø  Common lighting on solar system with backup.

Ø  Homes designed with Natural Ventilation

Specifications:

Ø  Vitrified Tiles Flooring for all Rooms.

Ø  Elegant designed Main Door with Latch Lock.

Ø  TV and Telephone points in Living Room and Bed Room.

Ø  Glazed Tiles upto 7 feet height level at bathroom and toilet.

Ø  Concealed Plumbing with ISI mark Standard Fittings.

Ø  Black Granite Platform with Stainless Steel Sink for Kitchen and 2 Glazed Tiles above Platform area.

Ø  Powder Coated Aluminium Windows to all rooms

Let’s have a look on some of the tax benefits of  buying our ready to occupy flats  vs  buying site & constructing a house:

Buying Flat:

      Ø Tax benefits can be availed of immediately.

 
Ø  If the property is self-occupied, interest deduction up to Rs 2,00,000 is allowed under Section 24. 
 
Ø In case the property is let out, the deduction of interest shall be allowed up to the interest payment,       without any upper limit . 
 
 Ø The principal is allowed to be deducted up to Rs 1.5 lakh under Section 80C.

Buying Site & Constructing a House:

"The tax benefits are available for a 'house property', which refers to 'building and land appurtenant thereto'. A plot of land may not be considered as house property and therefore not eligible for tax benefits." However if you buy a plot and build a house on it, the deduction on interest and principal payments will be similar to that for under-construction property.

Ø  Tax benefits for under-construction properties start only after they are completed.

Ø  According to the income tax laws, you do not get tax benefit under Section 80C for principal payments made during the construction period. You are eligible for this only after the construction is completed.

Ø  Similarly, one can avail of tax benefits on interest only after the construction is complete.

Ø  However, the interest paid during the pre-construction period can be claimed as deduction in five equal installments after construction.

Ø  The construction should be complete within three years from the end of the financial year in which the loan is taken in order to get a deduction of Rs 2,00,000. Otherwise, you will be eligible for a deduction of only Rs 30,000. 

Loans available from all leading banks:

v  Our projects are approved by all leading banks, and we can advise you on the procedures for obtaining a loan.

v  We advise you on the best ways to plan your monthly allocation based on your income, towards current rentals and EMI payments.

v  We also help you to choose the right flat for your family and plan the most practical ways of financing your commitments.

Note:  Flat Cost, land value, construction cost, and loan related figures are indicative and subject to change.

For any further details you can call us on 9008949456 or Write to us at contactus@moneymintingmantra.com.