2) refers to the property right after the stage of completion of construction
3) does not have heating, ventilation, and Air conditioning (HVAC) systems, lighting, plumbing, and elevators
4) needs basic amenities in place before it can be used
5) preferred by end-users who want to design their home as per their convenience and lifestyle 6) ideal for Startups, corporates, or those looking to customize their property as per their lifestyle
7) more popular in residential segments
8) plastered walls, basic flooring, bathrooms, and kitchens are present, with no ornamentation
Points consideration in Investments in bare shell properties
1) the cost and time involved to renovate the place can be extensive, calculate these costs beforehand
2) once you do up a property, it is not easy to move out easily, go for long-term plans
3) converting a bare shell property into any other is labor-intensive and you will need research, focus, and due diligence before you get started with your plan
4) there may be construction delay to account for, be flexible about your time-line
5) do now expect tenants immediately for bare shell properties
6) you need to be aware of the terms and conditions, as well as the exit-stage state of the property
ACIT Vs Seema Sobit (ITAT Delhi), Appeal number 5899/DEL/2015, Date of judgment – 15/05/2019
Since the booking of the bare shell of a flat was construction of house property and not purchase, the date of completion of construction was to be looked into which was as per provision of section 54, therefore, AO was directed to allow benefit to the assessee as claimed under section 54 ie for long term gain calculation date of the agreement be treated as date of acquisition
Extended Bare Shell
It means the landlord provides bare shell spaces with add-ons like DG backup or toilet
1) allow end users to experiment with the interiors
2) freedom to customize your home according to your choice
3) from a developers perspective, selling bare shell properties is a good strategy to push sales
4) flexibility to plan post possession makes the bare shell option most popular
5) Bare Shell Properties are much cheaper than fully furnished properties 6) developers save up their cost and capital investment for bare shell properties
7) need of occupancy certificate
8) for developer, the liability of finishing is much less in bare shell properties
9) bare Shell Properties is a win-win condition for both ie developer and customer
Disadvantages of bare shell properties
1) time and cost to be considered for converting bare shell into furnished
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