Right time to invest in Property in India/ Real Estate- the Buyer’s Market in India
While everyone wants a place of their own, buying a flat in Metro cities and all developing areas have their own challenges, including financial challenges. In the recent wave of events though, this might be the best time to go beyond all such challenges and invest in property in India. Unbelievable? It might feel so, especially when everyday there are plenty of news articles being published about how the real estate sector of India is facing trouble- but not necessarily for the aspiring buyers. If it still sounds like a fairy-tale to you, then look at the following factors and the picture will become clearer about current scenario.
- The stagnant and hence, steady price point
While there has been a lot of opinions floating around the fact that the real estate sector is going through a slump, the truth is every coin has two sides. So, the better side of the story is in most cases, and this is applicable throughout India, barring an exceptional scenario, the price point of property is no longer on a steep rise. Metro cities as well as tier I & tier II cities have a lot of projects that are either ready to move in or under construction where the trend of ever rising price every month is no longer applicable. It gives you a better chance to plan and buy a property. After all, the slump is not here to stay forever. This is the right time to cash in on the steady price point.
Key Tip: Make merry while it lasts; buy the property while the cost of the same is steady and stable
- The ‘Add-on’ benefits
Owing to the lesser number of eager buyers looking to shell out the dough, most builders (and yes, this includes the reputed ones too) are offering additional benefits of different kind at no additional cost out of your pocket. The old saying of killing two
Key Tip: Get more for less; pay the price for the property and earn additional benefits while the offers last
- Lessening burden of interest rates
If you have not followed the details, here is an update for you- there have been several consecutive cuts implemented by the Reserve Bank of India on Repo Rate. It now stands at a 5-year low and this is reflecting clearly in the interest rate that is applicable on home loans offered by banks and non-banking financial corporations. If you were aiming for a home loan, it is most pocket friendly right now.
Key Tip: Check the interest rates offered by different entities- take the benefit of the one with lowest rate on home loans
- The latest tax benefits
Did you check the budget of 2019 thoroughly? Here is a quick recapitulation of a key fact- for units costing less than INR 45 lakh, home loans taken will yield an additional benefit of INR 1.5 lakh additional deduction on the interest component. In turn, it brings down the cost of buying affordable property.
Key Tip: Pay less tax for the same home loan compared to previous years, if you take the loan now
- Loosened grip of GST
For affordable property (as per the limit set by the Government), it gets even better. Not just higher tax benefits, but even the GST rate has been lowered. It now stands at only 1%. So, the additional amount to be added on the price of the property is lesser right now.
Key Tip: Find a residence close to your workplace (or at least easy to travel to your workplace)
- The problem (and advantage) of plenty
What may seem like a problem to many builders (including quite a few reputed ones) is an advantage for the buyers. With the slow down in the property market taking over, there are plenty of projects with many units that have not been sold but are ready to move in. Gone are the days when property units were sold like burgers in a fast food joint the moment they were announced. You would find many options available in the market in your budget. For anybody looking for options to choose from, the time is ripe.
Key Tip: enjoy the sweet problem of plenty; with many options of property available, choose what you like in your budget
What essentially might have looked like a slump for the real estate sector in India is actually a blessing in disguise for the aspiring buyer. Financially and otherwise, this is, in fact, the golden period to obtain a property in India. Just remember this- like everything in life, the slump is not here to stay forever, and the same is applicable in case of the golden time for buyers. So, if you want to purchase a property, you might as well make the move now