Why it is a Good Time to Buy Property

Real estate sector in the country has been witnessing underwhelming business since the last couple of years. Thanks to the skyrocketing property prices coupled with ever increasing property scams and frauds, there have been very less potential buyers seeking properties in ongoing as well as completed projects.
 
However, developers are expecting a change in their fortunes in the coming months. The latest move by the central government to demonetize 500 and 1000 rupee notes has disrupted majority of the ongoing property deals involving black money. Moreover, property transactions with cash as the only payment component do not seem to be happening at least in the near future. The said move by the government to clamp down on black money is speculated to bring down the property prices by several notches. Demonetization coupled with the introduction of GST bill and RERA Act is only going to motivate the potential home buyers thereby improving the present situation of the India’s realty sector.

Let us discuss in detail why it is an excellent time to buy a property.
 
Demonetization will help reduce property rates:
There used to be large scale flow of black money and undisclosed cash in a majority of the real estate transactions. The demonetization of higher denomination notes will bring such dubious property transactions to a complete halt. As a result, developers will get stuck with piled up inventory. This will ultimately result in the reduction of property rates as the real estate developers would be keen to sell their unsold units. Moreover, potential home buyers can further negotiate prices with the seller taking advantage of this situation. The demonetization will help create a clean environment in the primary market and has come as a boon to the home buyers who had been unable to buy a home due to unrealistic property prices.
 
Introduction of Real Estate (Regulation and Development) Act, 2016 (RERA):
Continuing its efforts to lift the business in real estate and protecting the home buyers, the union government has introduced the Real estate (Regulations and Development) Act 2016, (RERA). RERA aims to protect the interests of potential home buyers and to bring down the corruption in the realty sector. The union government has ordered to set up RERA in all the union territories and states with legislatures in the country.

According to  the rules and regulations of RERA, a property developer, as well as a promoter, is liable to pay monetary compensation to the project allottees for any delays in the delivery of the project. For years, home buyers had been suffering losses due to the delayed deliveries of housing projects. RERA aims to penalise such developers thereby safeguarding the home buyer’s interests. The RERA Act also aims to bring accountability and transparency in the otherwise opaque structure of the real estate sector. Property builders will now have to publish all the legal documents of the project on their websites. Home buyers will be given easy access to all the projected related information such as floor plans, total apartments, approved plans, carpet areas to name a few.
 
Implementation of GST from next year:
The introduction of GST will further ease the process of purchasing and register a property. While the current tax structure comprises of several charges such as registration fee, service tax, VAT which is hard to compute, GST aims to bring a single tax structure to be paid while registering your property with the concerned authority. All the current taxes will be amalgamated together into one single tax which will be helpful for the home buyer.
 
All these discussed recovery steps are speculated to lift the spirits in the country’s real estate sector.