If you’re thinking about buying a house, there are several benefits you may take advantage of. The first-time house buyer can also have Tax Benefits.
We aspire to own a home to share and create impeccable memories with our loved ones. But owning a house in today’s dicey economic conditions comes with a long-drawn procedure, especially for an average-earning individual. From savings to deciding on a perfect household fulfilling all the requisites and aspirations, home buying is a head-spinning task for new buyers or buyers with no guidance and knowledge.
Along with the dark side of the first-time home-buying experience, it also has a greener side where you’ll be amazed at the benefits you’ll receive in this process.
But before assimilating those benefits, it’s crucial to understand who can come into the category of being a first-time home buyer.
Who is a first-time home buyer?
A vague meaning to the concept can be those buying a home for the first time, but it teaches a vast arena that also includes the purchasers with an experience. For example, people who purchased the property earlier for let-out purposes also come under the sphere of first-time home buyers if their current purchase is for personal use.
Advantages Awarded to the First-Time Home Buyer
Additional Tax Deductions
Section 80C, 80EE, and 80EEA are the segments under which you can avail of tax benefits. Under 80C, you can get a tax benefit of 1.5 lacks upon the repayment of the principal amount of the home loan.
Whereas via sections 80EE and 80EEA, you can claim a benefit of Rs. 50000 upon interest repayment.
Further, under Section 24, first-time home buyers can claim tax deductions on the interest paid up to Rs. 2 Lakh per annum.
Tax Benefits for the unavailability of HRA
Without a House Rent Allowance (HRA) or if you’re self-employed, you can claim tax benefits under Section 80GG. An individual can claim expenditure incurred more than 10% of the total income on accommodation-related expenses.
Relaxation in GST
Earlier, the GST slab for residential space was 12%, whereas, in the recent development, this percentage decreased to 8%. This relaxation in GST allows homebuyers to avail a large number of benefits.
An additional benefit to Women
There are several provisions wherein tax exemptions are given to women. However, there is no universally applicable tax benefit for women who can claim subsidies for being first-time buyers. Certain states provide exemptions in one form or another. For example, some state governments offer a 1-2 per cent exemption on stamp duty.
This domain covers individuals from the Economically weaker section, Middle Income Group, and lower-income group. The individuals in the above areas can claim tax subsidies on their home loans through Pradhan Mantri Awas Yojna based on the family’s annual income.
Points to Remember
The above benefits are a general categorisation regarding your expenditure. However, here we will be discussing a few pointers that assist you in having a cutting edge while making your first investment.
Figure out the Budget
This aspect of house hunting can make or break a deal because of its foundational eminency. Thorough understanding and segregation of expenses for purchasing your dream home are paramount, and it helps you ascertain your financial stability to make a considerable investment.
The second important nuance is property classification. You must determine what kind of pr and precise you want to purchase, and clear distinction saves time and money.
The location of a particular property is essential because of its description regarding available conveniences, neighbourhood arena, or localities surrounding your property.
The strong foundation and robust structure of any property enhance its long-term value. It becomes crucial to have decent knowledge about the builder, including their work to date.
Yes, you heard it right. It’s preferable to get your home insured from unpredictable circumstances that could push you to pay a hefty amount. It’s an essential shade of long-term security to your property that will cut the sudden load of expenses.
For Indians buying property comes with a feeling of pride and security which means it also comes with a responsibility of careful planning. Further, the residential segment has seen a sharp increase in the demand for residential spaces, especially after the global pandemic. Complying with the needs of several policies and exemptions allures and encourages seekers to own a house.
From the above-stated benefits and tips, it becomes clear that to reap the perks, one has to perform in-depth research based on their preferences or can take expert guidance to shorten the house hunting period.
What’s the perfect time to buy a home?
There might be multiple factors, such as prevailing interest rates or the prevailing rates of property. However, the utmost essential aspect is your financial stability.
How will an expert help me in finding a perfect house?
Experts have in-depth knowledge of the real estate sector, and their knowledge will become a guiding star for your perfect home.
What are the essential documents required?
Sale Deed, NOC, Tax receipts of the seller, Payment Receipts, Power of Attorney, Khata Certificate and Agreement Copy.
How can I check the quality of the construction?
That’s the key concern while ascertaining the quality because it gets difficult for individuals with no or less knowledge about the quality parameters. There might be general things that can depict the quality, or you might do research, but in such scenarios, expert information can help you to have an exhaustive check.