Buying property is definitely a tough decision to make, particularly when you buy it as a future investment. Saving money may not be a difficult job for you, but deciding what you want to purchase is crucial when you have choices like buying a vacant land plot or an Individual House or a flat in an apartment. Apart from the desired comfort zone, one has to consider certain factors like tax benefits and loan facilities too.
Not only buying an apartment will keep you out of the nightmares of hiring a contractor but also it will keep you away from the restless running to get approvals from the local authorities. Since the builder will take care of all those things and deliver you the flat or House to live immediately.
The facilities like power backup, security, and maintenance work are the biggest advantages of buying a flat or living in an apartment. Amenities like swimming pool, clubhouse and parking lot are just a plus to it. Which you never going to get if you are buying Plots or an individual house unless it is in a gated layout developed by any land developer. If you are looking for such property then here you can find some of the best plots and apartment within 20 lakhs in Bangalore.
However buying plots has its own benefits as they are ready for immediate possession even if it is a part of a big layout. Whereas getting possession of a flat takes years long.
In a stable market condition, location plays the key factor for the hike in price. The appreciation of land plots will rise over the passage of time. Since developing a vacant land is much easier compared to building apartment, so you can exit from the investment at a shorter time span.
The demand and supply equity go in the favor of plot buyers as land are limited. The appreciation value of your asset escalates faster if it is a vacant land comparing to individual house or apartment. Additionally, there is no depreciation in the value of land. Whereas construction work or building structures are likely decrepit with age.
This is totally wrong if we say the price of an apartment never rise because infrastructure and the neighboring locality play an important role in pushing the price up. Yet the value of construction work has a depreciation with respect to its age.
Note: It seems land plot has a command over flats and individual house when it comes for appreciation price but don’t forget to read these helping tips to know before buying plots.
Interest and Taxation Benefits
If the construction work is completed within 3 years before the end of the last financial year in which loan is taken then the loaner is eligible for a deduction of 1.5 lakh per financial year towards interest. Even if the conditions are not satisfied then also one can claim a deduction of Rs 30,000.
Tax benefits for an apartment, individual house, and land plots completely differ from each other. When you took a loan to buy a flat you are eligible for some deductions in your repayment. However, if you have taken a loan to buy a plot and expenses on construction work the deductions is only available after the completion of your home. Holding a vacant land never allows you for any tax deduction but one can claim for some reduction in the interest paid.
If you desired for a regular income then an individual house or an apartment is an ideal asset to buy. If you are living in metros like Bangalore then you can easily get 3 to 5 percent of property value as annual rental income which may not be possible in case of land.
Owning multiple houses and residential plots in urban areas more than 500 Sq meters makes you eligible for a wealth tax. Still one can claim for certain exemption by showing the house is for business usage or it was rented for 300 days during the financial year.
In the case of land property, there will not be any wealth tax, if the landholder took it for industrial work or stock in trade at least for a period of two years and ten years from the date of acquisition of the land respectively.
The selection of plots or house as an asset of income is completely based on preferred holding times and your terms of investment. Make a note of it, whether your investments are for a long or short term you should utilize the tax exemptions applied to it.
Bangalore shows a phenomenal performance in real estate, the market stability and growth rate attracted may multinational builders as well as investors. Here one can get residential land plots at an affordable price along with all the amenities required to maintain the ultra-luxurious lifestyle of the city and TGS Layouts is one among the land developer who proves its consistency in it from years.