 Never thought of a house as an investment; then it is a good time to know about its pros and cons so that one can choose the path one feels comfortable.
When one buys a house with a sole aim of reselling them within a year; it is a good option. Let us go into the details. Buying a house when the projects starts and selling it, when it is completed will fetch good returns. But these are point to be considered,
- If one funds the buying with his savings, then it is an attractive investment. But, when going for a loan, one has to pay the interest, not the EMI until you sell the house. This is a burden one has consider and there is no tax exemption.
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Then there is the issue of capital gain tax which creeps in when one sells his house within the period of 3 years There is no possibility of tax saving in capital gains ,when one sells the house during this period.
There is another option. One can go for an outright purchase of a finished property. Paying the EMI and getting the rentals from the property and availing the tax deductions under 80C for the loan sounds good. One can enjoy the benefits of rent for 3 years, then sell the property. But there is a catch, rentals from the property is taxable.
All these scenarios have to be considered before taking a decision.
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