Homeloan Fundamentals for Purchase of Resale Property

Today the maximum number of home buyers look for a fresh home means the newly/fresh constructed home but there are many who won’t mind buying a resale property. So, if you are confused about which one to opt for then let us tell you that purchasing a resale property/flat comes with their own benefits in comparison to the freshly constructed properties.One mainframe advantage of buying a resale residential property is that the prospect is likely to own a home which is prefixed with various fixtures such as fans, lights and hanging loops. Apart from this, the essential for homeloan on the purchase of same are listed below:

Purchase of Resale Property

Img : squarecapital

1. Impact of GST on Property Sale/Purchase:

Commonly known as GST – the Goods and Services Tax has transformed the business sector completely and the property market is also experiencing this change. Now, the resale properties are out of the GST list although the seller of the property has to pay for the stamp duty charges that vary from State to State. Likewise, the purchase of a resale property is also out of the GST bracket but the resale of an under-construction property comes under the Goods and Services Tax. The standard rate of GST for the same is fixed at 12 percent which is uniform all over the country.

2. Home Loan Creteria:

Both people can apply individually or jointly as a couple for a home loan for purchasing a resale property. Other than a couple, a person in close relation with another one can also apply for a home loan which includes wife, husband, mother, father, sibling or children.

3. Home Loan Period:

The period of a home loan is decided according to the applicant’s time of application, applicant’s age on maturity of the home loan, how old the property is when applied for a home loan/completion of home loan, repayment mode and income of the applicant are the things that consider the home loan period.

4. List of Necessary Documents for Home Loan:

  • Duly filled application form.

  • Passport sized photo of applicant

  • Latest 6 months bank account statement

  • PAN Card, Voters ID, Passport or Driving License as identity proof.

  • Latest phone bill, electricity bill, property tax receipt, Passport, or Voter’s ID as address proof.

  • Business address proof should be submitted by self-employed applicants.

  • Documents related to property, like: Agreement of Sale, Sale Deed, Letter of Allotment, Land/ Building Tax paid receipt, Non encumbrance certificate, etc.

  • Copies of approved plan and local body approval

5. Income Tax Benefit/Rebate on Purchase of Resale Property:

Firstly, any person can enjoy Income Tax rebate soon after acquiring the possession of a property. He/She becomes eligible for deduction on principal amount up to rupees 1 lakh under Section 80C of IT rules after owning the resale property. Secondly, a person is eligible for another deduction limited up to rupees 1.5 lakh on the interest paid on the home loan amount under section 24B of the IT rules.

The benefits of purchasing a resale property help you save better and thus considering the purchase of such property is likely to act positively for you.