If you are buying a home for the purpose of investment, and plan to move in later, you should again be looking at ready-to-move-in property.

Many people bet on the appreciation of under-construction property, hoping for a 2 5-40 per cent increase in value during the construction period. This can prove to be rather risky if the housing project gets delayed or even goes bust.

First, you end up blocking your money for the construction period with no returns accruing on the invested money.

Second, you lose out on the return that you would have got, had you invested elsewhere. Renting out a ready-to-move-in home bought primarily for an investment purpose can be a good idea. You can use the rental income to make EMI payments and even regular part-prepayments of your loan so that you can retire the loan earlier than stipulated.

Tthere is no limit to tax deduction you can claim for home loan interest repayment if the house has been rented out. Early loan retirement should also be your aim if you want to self-occupy the house.

By doing so, you would be able to fully own the home and use the appreciated value of the home later in case you want to move on to a different house.