So, for once, don't get lured by the media blitz about new properties launches. Disregard the jazzy brochures. Ignore the promises of multiple modern amenities. Snub the marketing gimmicks. Rather explore what a resale property has to offer that a new one may not.
1. Firstly, break your mental block against the word 'resale'. Resale should not always conjour up an image of a dilapidated, worn-out and old property in your mind. Many 3-5 year old buildings look quite attractive, besides offering plenty of amenities.
2. And if the property had been purchased as an investment and not rented out, it is as good as a new one.
3. The possession is immediate. Hence you are relieved of all the worries and risks of delayed completion, a problem which is quite endemic with the new projects. Plus you get what you see.
4. You can straight away start claiming your tax deduction on stamp duty / registration, interest payment and the principal repayment.
In most new properties you lose the benefit of stamp duty / registration which is available only if the property is completed in the year of payment. Even the benefit of principal repaid is available only from the year of completion onward.
Interest paid during construction can be carried forward and claimed equally in five years from the year of completion. But this too is also probably lost, as the normal interest during those years itself exceeds the limit of Rs.1.5 lakhs.
5. Since these flats are ready-to-move-in, you also avoid the double whammy of EMIs and Rents in under-construction properties. The so-called 'No-EMI-during-construction' schemes are an eye wash as you indirectly end-up paying this extra cost.
6. You can expect to save about 5-15% of the total cost as the new properties are expensive. On a total cost that runs into innumerable lakhs (and nowadays even a few crores), this can result in substantial savings.
7. The infrastructure around the project, as also the amenities within, are already in place and ready to use. In most new projects you would have to wait for a few years to enjoy these.
Given these numerous advantages of buying a ready property, I guess we should first look for such opportunities; instead of being tempted by and enticed into booking an under-construction property.
Note: Also read 'Real Estate. UnReal Promises.'
