Posted on 22 March, 2024 by Sugee Group
Timing is everything and when it comes to property deals and buying a home at the right time can make all the difference for your future investments. Buyers often focus on the type of home, location and even the financials but don’t pay much heed to the timing. March or the closing of the financial year can be the ideal month to finalize the deal for your dream home. Apart from tax benefits, there are many savings in the form of discounts and incentives offered at this time that make March possibly the best time to invest in a home.
Why is March the best investment period?
The period leading up to the end of the financial year, before March 31 is traditionally considered busy for finalizing all financial decisions. It’s also the right time to invest in property as this is the time when the market is characterized by bullish sellers, less competitive buyers and a plethora of prospects to save tax.
According to experts, the fiscal year’s closing months witness declining homebuyer demand thereby providing lucrative opportunities to savvy investors. This is also a time when developers dole out attractive discounts, payment plans and incentives to sweeten the deal. Let’s look at the most compelling reasons to invest in a house in March:
Attractive pricing
Property prices are probably at their lowest around the end of the financial year making it a buyers’ market. Real estate agents claim that they get multiple inquiries from first-time homebuyers seeking affordable deals. Unlike the festive season when prices are inflated due to high demand, the time around March is known for the most attractive price points. Furthermore, several banks and housing finance companies are known to offer lucrative deals, discounts and flexible payment plans around this time. This creates conducive conditions for homebuyers to enter the property market.
Tax benefits
Another strong reason why homebuyers should consider investing in March is the wide range of tax benefits. By purchasing a home at the end of the financial year, they get to avail additional tax exemptions over the housing loan principal amount. This is also the time when homebuyers start finalising their Income Tax Returns (ITR). By purchasing a home in March, they can significantly reduce their tax liability on the home loan.
Let’s look at the amount homebuyers can save by way of tax benefits:
Under Section 80C of the Income Tax Act, homebuyers can save up to Rs 1.5 lakh on the principal amount.
Under Section 24, they can claim Rs 2 lakh on a self-occupied home.
First-time homebuyers can claim an additional Rs 1.5 lakh under Section 80EE.
Timely home purchase can result in a cumulative saving of up to Rs 5 lakh
Less competitive market
At the end of the fiscal year, most customers get their finances in order and are busy calculating their balance sheets with the help of financial experts. Some of them have to pay advance tax before March 15 and hesitate to make any financial commitments like property purchases. This changes the market dynamics in favour of the buyers looking to capitalise on the lack of competition. With fewer buyers in the ring, they are able to close favourable home-buying deals by negotiating better prices.
More incentives from developers
After the excitement of the festive season, the market slows down around the end of the fiscal year. This particularly impacts developers who are working on new projects or those selling in the secondary market. To boost sales, some developers provide benefits such as discounted renovations and offers. Homebuyers can scout the market for such deals and avail more incentives in March than the rest of the year.
Economical moving costs
Lower sales volumes and fewer home deals in March also has an impact on demand for moving and packing services. Homebuyers are in a better position to avail attractive discounts and bargain better deals for such services. Moving and packing is a significant expense and any savings in this matter can bring down the cumulative cost of a home purchase for end users.
Seal the deal in March!
The financial year-end offers a wide gamut of benefits on home purchases along with reducing other expenditures such as packing and moving. A home deal in March could turn out to be quite lucrative, helping the buyer pocket sizable savings. Many families choose this time to relocate as March gives them enough time to settle into a new home before the start of the new academic year. For investors, a purchase in March can improve the chances of finding a tenant sooner than the rest of the year. There’s no dearth of strong reasons to buy a home in March, so seal that home deal now!