Most people in India would love to have their own house. It's a dream come true. The Government wants all citizens to have their own house and has launched an ambitious program called "Housing for all by 2022" Mission.If you're a first time home buyer, this might be the right time to buy your own house.
Want to know more on Investment Planning and home loans? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.
Consider these factors when buying your first home.
1. Real Estate (Regulation and Development) Act (RERA)
It is compulsory for developers to provide project details such as cost of land, cost of construction, development agreement, sanctioned plans, covered parking lots, construction deadlines and so on.Under RERA, the builder has to transfer 70% of the money received from a home buyer, to an escrow account. This money would be used as the stages of construction are approved by the engineers.
If the builder delays possession of the apartment within the agreed time period, he must return your (the buyers) entire amount with interest.
2. Property prices are falling
Those properties will be taxed at the rate of 8-12%, if they are in stock for more than one year from the date of receiving the project completion certificate. With the implementation of this practice, buyers can expect a further fall in the rates in the sector, which is already facing slow growth.
3. Tax benefits
To claim this deduction the home buyer should meet the following criteria:
a) The home buyer should not have any other residential property in his name and the home loan should be sanctioned between 1st April 2016 and 31st March 2017. It would be good if the time period is extended further in the Union Budget 2018-19.
b) The value of the loan should not be more than Rs 35 Lakhs and the value of the property should not exceed Rs 50 Lakhs.
4. Credit Linked Subsidy Scheme under PMAY
Citizens with an annual income between Rs 12 Lakhs to Rs 18 Lakhs come under the MIG- II category. Citizens under MIG-II category, get a 3% interest subsidy on a home loan up to Rs 12 Lakhs.
This is an excellent time to buy your first house. Don't miss this opportunity. Be Wise, Get Rich.
The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.
Subscribe to our Youtube Channel
Hello friend! I am your personal financial advisor. By the end of this interactive session, I will help you to plan yours and your family's finances to ensure a better future.