Every Indian wish to have their own dream home. More than just being an asset, it’s about pride, stability, and security. Several government schemes and benefits help with one’s first purchase, especially considering flats in Bangalore. It is helpful to understand these initiatives when looking buying 2BHK flats in Bangalore or 3BHK flats in Bangalore and other cities. Not only interested in just major cities, property buyers are also considering smaller cities. As investment is much more affordable in smaller cities the return on investment is attractive. One should note, a first-time home buyer has not had a principal residence in the last three years.
Rupees 1.5 lakhs can be claimed in tax benefits regarding a home loan. However, this tax deduction is only valid for construction that has been completed, and the home has been in possession for at least five years since the date of purchase.
Additionally, on a home loan, a tax benefit of around fifty thousand can be availed on interest repayment, which is over the tax benefits. This deduction can be taken only if the property is self-occupied. This deduction is only applicable for first-time home buyers, and the loan amount should not exceed thirty-five lakhs.
Under this scheme, around two lakhs can be availed on the repayment of the interest on one’s home loan. However, this is exclusively available only for self-occupied property.
Interest for up to two lakhs is deductible from the total gross income in a self-occupied territory. This period has been extended from three to five years since the date when the loan is sanctioned.
Also Read: 5 Best Areas to Buy Flats in Bangalore
RERA helps transparency between buyers and builders, standardized measures, and buyers' rights defined and strengthened. In addition, it helps keep the malpractices of builders in check.
Under this scheme, only 8% of GST has to be paid. A subsidy is provided to first-time buyers from low or middle-income groups. The principal amount may vary based on the family income. The subsidy percentages are as follows: Economically Weaker Sections (EWS) get 6.5% on interest, Lower Income Group (LIG) get 4% on interest, and Middle-Income Group (MIG) get 3% on interest.
Participation of women in real estate has been increasing with women now preferring real estate as an investment. Some state governments allow for one to two percent benefit of stamp duty if a woman is the owner of the house. For example, in Rajasthan, if a house of 40 lakhs is purchased, the stamp duty would be around 8.8%, but if a female member buys, then only 7.5% of the stamp duty needs to be paid. Under PMAY women are given more preference as compared to male applicants. Additionally, under this scheme. In addition, the government has mandated that the name of at least one woman in the household should be registered. Due to this scheme, the number of first-time women homebuyers has increased substantially. Furthermore, banks offer home loans at 50-100 points lower than the rate compared for males.
The tax benefits remain the same if a husband-and-wife purchase jointly. This is because they can claim these benefits on their files. However, husband and wife cannot take benefits on the same amount.
With the changing economic trends, the real estate and buyer trends have changed immensely. However, buying a house, especially 2BHK flats in Bangalore or 3BHK flats in Bangalore for the very first time is still a valuable moment for any Indian. By making use of the above-mentioned government schemes, one can benefit majorly in buying one’s first home.
Following are also some considerations to make to while planning to buy a house:
• Known your budget
• Ensure your wants, size of the house, number of rooms, amenities, location, and so forth.
• Calculate the average cost of utilities for the properties that have been shortlisted
• Analyse if the house that is being bought is future-proof
• Take a home loan for purchasing your dream property
• Take a tour of the neighbourhood
• Keep multiple options ready.
With the above understanding and such schemes, purchasing flats in Bangalore makes more people eligible and housing more affordable for the masses.