7 Important Life Hacks When Looking For An Affordable Apartment In The City

Searching for a decent and affordable apartment in the city can be a difficult task for anybody.

To understand the expenditure involved in purchasing an affordable apartment, you will need to access the implication of gst rates. Earlier, the GST rate applicable to residence priced above 45 lakh was 12%. The new GST rate that came into effect from 1st April 2019 is now 5% for under-construction projects.

The Goods and Services Tax (GST) Council announced a 1% GST rate on all affordable apartments smaller than 650 sq ft in metro cities from 8%. The same GST rate is applicable for houses smaller than 960 sq ft in non-metro cities.

You need a dependable strategy that helps you to take the right plunge. Here are seven productive shortcuts for purchasing a reasonably priced apartment.

Ascertain Your Budget 

You can make the right decision when you define the budget you are willing to allocate for an apartment in the city. Your budget will determine the size, location, and the neighbourhood of your accommodation.

The ‘Housing Policy for All’ or ‘Pradhan Mantri Awaz Yojana’ provides concession on the GST rate for affordable houses under construction within 45 lakhs budget. The project is up-and-coming for aspiring home-owners to possess a brick and cemented home with basic amenities such as electricity, water connection, attached toilet, and gas.

Invest In Under-Construction Affordable Apartments 

The rising rate of home properties is not a hidden secret.  It has a direct relationship with the economy of the nation—the resale value of property yields a high-profit.

Purchasing a house is a long-term investment and reaps high-profit. Nevertheless, it would be wise to invest in low-cost houses under construction to take advantage of the tax benefits. Newly constructed, affordable apartments guarantee a longer life.

Cheap Alternative In Good Locality 

Usually, the rate of houses in metro cities is high. However, there are several perks of living in a posh locality. If you yearn to live in a decent area, but cannot afford it, you can search for a room partner who can share your load of expenses.

Go For Home Loans 

Experts suggest that home-buyers can reap tax benefits if they purchase a home against a home loan. However, some are under the impression that home loans add the burden of repayment with high-interest rates.

The Income Tax Act, 1961, has made a provision under section 24(b) that home-buyers can claim a deduction up to 3.5 lakhs INR against total payable interest on the home loan for under-construction properties. Thus, it would be advisable to take home loans instead of making down payment from your savings.

Compare Prices Of Affordable Apartments 

Sometimes, comparing the prices of two residential complexes along with the amenities can help you decide. Estimate the overhead cost that you may have to incur to upgrade your newly-purchased apartment. You may be fortunate to own a house with all the amenities in a good neighbourhood if you do your homework well.

Negotiate Your Terms 

A real-estate agent survives on the commission he earns in the process of buy and sell of properties. They keep a scope for bargaining before you can acquire your dream home within your stipulated budget. It would always be best to clarify your concerns, in the beginning, to avoid any confrontation later.

Also, it would help if you maintain a professional distance and use a business tone to communicate your terms and conditions. Contact a reliable real-estate agent known to your family or friends.

Direct Purchase Of Affordable Apartments 

The real estate agent is a mediator between you and the property developer and earns brokerage from both ends.

You can consider contacting the property developer directly instead of channelling the buy-sell process through a contractor or a real estate agency to mediate. Consequently, it will provide you with financial benefits when you save on the commission you give to the agent.

Alternatively, you can do house hunting sitting at home on your laptop.  You can find your dream home at an affordable price on several online sites.

Final Thoughts

Experts believe that the new gst implementation rate cut will eventually help home-buyers. Moreover, it will shrink the profit margin of the real-estate owners, since they will not get any tax rebate on construction materials.

It would be best to begin saving well in advance before you start searching for a housing complex. You can take a year to narrow down the criteria that fit your budget and meet family requirements. The process of research will avoid errors and could prove advantageous to you in financial terms.

Leave a Comment