One of the main questions that confuses a first-time home-buyer is whether he should buy a home in a ready-to-move-in project or make a booking in an under-construction project. Both the options have their own pros and cons.
As the name suggests, an under-construction property is one that is still in the development process and is not fit for immediate move in. The main issue related to the under construction property is the delay in completion of the project. The project may be delayed due to any reason, the most prevalent are those related to financial consequences and litigation issues. In case of ready to move in properties, you do not have to suffer the risk of delay. You get immediate value for money.
The financial implications of the ready to move in properties are better than those of under construction. If you immediately move into your new house, you can get rid of the rent payment at once. Whereas in case of under construction property you have to pay the EMIs along with the rents which becomes quite burdensome for a middle class homebuyer.
Along with the rent saving factor, ready to move in properties also offer some of the benefits in the income tax vertical. If you have taken housing loan for a residential property, the interests for the years before taking final possession of the house can be claimed in five equal installments starting from the year of possession. You can get the benefit of claiming this amount if you immediately shift to your new home.