False Beliefs Regarding Demonetization Caught Up In the Mind of People
May 18, 2017 Home Trading Steps
Real estate has been one of the most favourite and preferred investment tool in India to lock all your excess money. As it’s believed to be one of the safest means to invest in and one can expect high returns in the long run. Real estate sector has been a pre dominant place where the majority of the transactions tend to happen in black money which has been happening ever since in the real estate industry. So to bring out all this unaccounted money back into governance this step has been taken and it’s expected to bring much more clarity and transparency in real. Yes, the entire step has taken the country over a stir leading to a lot of inconvenience and people have given multiple opinions over this entire step. This complete discussion has given rise to several myths which needs to be explained and made cleared in the mind of people so that things could be understood in a much clear way.
Real estate being no more profitable place to investThis is the biggest myth of all the time yes, the people has to go through cash crunch and suffer during this entire period but this is just for short term and things will gradually get better and things will get more transparent, organised, and clear. This entire move has been taken for eliminating the use of black money not only from this entire sector but also as whole from the entire country. It will cause inconvenience to the people in the near time but it will be beneficial to the people in long run.
There will be cut down on all the additional costs this will also help to retain the confidence of the customer by bringing the real costing into the picture.
Break down of property prices in secondary or resale marketAnother myth which tends to exist is there will be huge break down in the property price which is a completely false. Yes it’s a known fact that majority of real estate transactions tend to happen in cash so there will be fall in the amount of transactions happening in resale or secondary market there will be decrease in demand leading to price fall but it will be for short term until the time everything gets settled down and making the things stabilize. It won’t be surprising if the price rises in the future as sellers need to come with the term of paying gain tax on monies.
Problems in doing land transactionsAs its believed that normally almost all the land transactions tends to happen in cash and they do not qualify to be financed by bank loans so yes they may be primarily be affected by it but not all has to suffer it as some of the lands purchased through joint ventures, joint development or corporate divestment will not go through this suffering as they have very little or no cash involvement in it.
Hence, there will be a correction in the real estate prices and this will now make it difficult for the buyer to make payment with the help of black money. There will be more accountability, transparency, and clarity. In earlier times even for large properties, no records were maintained now this will change making the things legal and compulsory.
Real estate being no more profitable place to investThis is the biggest myth of all the time yes, the people has to go through cash crunch and suffer during this entire period but this is just for short term and things will gradually get better and things will get more transparent, organised, and clear. This entire move has been taken for eliminating the use of black money not only from this entire sector but also as whole from the entire country. It will cause inconvenience to the people in the near time but it will be beneficial to the people in long run.
There will be cut down on all the additional costs this will also help to retain the confidence of the customer by bringing the real costing into the picture.
Break down of property prices in secondary or resale marketAnother myth which tends to exist is there will be huge break down in the property price which is a completely false. Yes it’s a known fact that majority of real estate transactions tend to happen in cash so there will be fall in the amount of transactions happening in resale or secondary market there will be decrease in demand leading to price fall but it will be for short term until the time everything gets settled down and making the things stabilize. It won’t be surprising if the price rises in the future as sellers need to come with the term of paying gain tax on monies.
Problems in doing land transactionsAs its believed that normally almost all the land transactions tends to happen in cash and they do not qualify to be financed by bank loans so yes they may be primarily be affected by it but not all has to suffer it as some of the lands purchased through joint ventures, joint development or corporate divestment will not go through this suffering as they have very little or no cash involvement in it.
Hence, there will be a correction in the real estate prices and this will now make it difficult for the buyer to make payment with the help of black money. There will be more accountability, transparency, and clarity. In earlier times even for large properties, no records were maintained now this will change making the things legal and compulsory.
Looking for property portal?
Related Articles
-
Essential Task Checklist for a New House Owner
Jun 02, 2017 -
-
6 Tax Free Transactions in Real Estate
Oct 26, 2017 -
See comments (0)
Write a comment
