Is It Possible to Use PF Withdrawal to Buy a House?

Purchasing a new house in Coimbatore is a major financial undertaking, and not everyone has the immediate capital available to pay for a home outright. Thankfully, there are options to assist with your purchase — such as withdrawing funds from your Provident Fund (PF).

You can utilise your PF to purchase a ready-to-move-in property from a housing board or a reputable builder. The withdrawal limit is capped at the lesser of either 36 months of your basic salary plus Dearness Allowance (DA) or 90% of your total PF balance.

 

What are the conditions for PF withdrawal to buy a new house in Coimbatore?

 

To withdraw from your Provident Fund (PF) for a home purchase, you must have completed at least five years of continuous service with your current employer.

The amount you can withdraw is limited to the lesser of 90% of your total PF balance or the actual cost of the home.

Note that your PF funds can only be used for:

·         Purchasing a new, ready-to-move-in house, or

·         Purchasing a plot of land and constructing a new house

 

You can also use your PF to repay an existing home loan, provided the loan is from a government-recognized lender.

The new house in Coimbatore must be registered in your name or jointly in your and your spouse's name.

Ensure that your property purchase agreement is finalised and ready when you apply for the PF withdrawal. The Employees' Provident Fund Organisation (EPFO) requires this document to verify the intended use of the funds.

 

Documents to show when withdrawing PF to buy a new home

 

You need the following documents for a smooth PF withdrawal:

·       Sale agreement or builder’s agreement

·       Owner declaration to show the property is in your name or owned jointly with your spouse

·       Employer’s signature on Form 31

·       Bank account details

 

Need advice?

 

If you are buying a new house in Coimbatore from JRD Realtorss, you can contact our team for personalised advice on PF withdrawal. Call +91 60339-3333 or download our app.

How to Calculate a Property's Market Value

 

Villas in Coimbatore are a significant investment, making it important to understand their value before you buy one. Knowing how to calculate the accurate market value of a property will allow you to make an informed decision and give you an edge when negotiating deals. This requires an understanding of various factors and having the right valuation techniques.

 

A property’s market value is essentially the price at which it could be sold in a competitive market. Multiple factors determine the market value of villas in Coimbatore, and three of the most important are community amenities, location, and property size. Current market trends and the property's condition also influence this valuation.

In India, property valuation employs several methodologies, including the equity approach, investment analysis, and transaction approach, depending on the property type and specific circumstances. That said, the Comparative Market Analysis is the most common and practical method for determining residential property values. It involves analysing recently sold comparable properties within the same area using this process:

Step 1: Gather comprehensive data regarding the villa's type, location, and square footage.

Step 2: Identify recently sold properties that are comparable to the subject villa in terms of size, location, and amenities.

Step 3: Calculate a benchmark value by multiplying the average price per square foot of the comparable properties by the subject villa's total square footage.

 

Invest in high-value properties.

 

At JRD Realtors, we are meticulous about planning projects. We build villas in Coimbatore only at carefully developed locations. JRD Vistara Villas, for example, are thoughtfully designed, eco-friendly luxury villas in Ettimadai with stunning views of the Western Ghats. Our properties provide a stunning nature retreat without being too far from modern conveniences.

 

Discover our villa in Coimbatore by getting in touch with us. Call +91 81899-99999 or speak to one of our team members at +91 81899-99999. You may also download our app to learn more about our ongoing projects.