Why Right Now is a Good Time to Invest in the Property
Sep 14, 2019 Real Estate News
There is no denying the fact that the real estate sector has been reeling with low sales and unsold inventory. Some of the most prominent builders of the country are facing insolvency, and the government is offering relief packages to the home buyers to boost the sales. The market is also in a state where there are many opportunities for buyers and investors.
We discuss the benefits that are available for the buyers:
Price correction: overvaluation of the immovable assets is the reason, the price in the market has remained unchanged. A decline in per sq foot rate has been observed in Gurugram and Noida. The price in Noida has declined from Rs 5,250/ sq. ft in 2015 to Rs 4,950/ sq. ft in 2019. The prices have gone down in Chennai as well.
Price correction acts as a prompter for the buyers who are buying the property for their use and not just investment. According to the government data, Kochi has seen a steep rise in the value of the property this year as compared to the last year.
Low-interest rates:
RBI has brought down the repo rates to 5.40 this year. The banks have agreed to pass the benefits of low repo rates to the customers. They have launched the repo rate linked products in the market, i.e., if the repo rate reduces, the interest will immediately reduce as well.
Tax deductions:
Year’s budget proposed an additional deduction of Rs 1.5 lacs for the loan taken to the properties less than Rs 45 lacs. This will bring down the cost of purchase for the affordable segment.
Lower GST:
Looking forward to investing in the affordable segment, this is the right time. The GST applicable to the affordable segment has been brought down considerably to 1 percent. For other projects, the levy stands at five percent of the property cost.
Ready to move in inventory:
Those who are not willing to wait and invest in the under-construction property, worry not. The builders have ample of unsold inventory to choose from. According to the Q1 of F20, 89 lac units are lying unsold with the developers. Nearly half of the stock is priced below Rs 45 lacs. The number available with the brokerage firms show that another 500,000 units will join the market by 2020.
The market has been fluctuating, and it is advised to the buyers to give every detail a good thought before buying the property. Investing right now, when the prices are low, and so are the interest rates, the benefits given to the buyer is ample.
We discuss the benefits that are available for the buyers:
Price correction: overvaluation of the immovable assets is the reason, the price in the market has remained unchanged. A decline in per sq foot rate has been observed in Gurugram and Noida. The price in Noida has declined from Rs 5,250/ sq. ft in 2015 to Rs 4,950/ sq. ft in 2019. The prices have gone down in Chennai as well.
Price correction acts as a prompter for the buyers who are buying the property for their use and not just investment. According to the government data, Kochi has seen a steep rise in the value of the property this year as compared to the last year.
Low-interest rates:
RBI has brought down the repo rates to 5.40 this year. The banks have agreed to pass the benefits of low repo rates to the customers. They have launched the repo rate linked products in the market, i.e., if the repo rate reduces, the interest will immediately reduce as well.
Tax deductions:
Year’s budget proposed an additional deduction of Rs 1.5 lacs for the loan taken to the properties less than Rs 45 lacs. This will bring down the cost of purchase for the affordable segment.
Lower GST:
Looking forward to investing in the affordable segment, this is the right time. The GST applicable to the affordable segment has been brought down considerably to 1 percent. For other projects, the levy stands at five percent of the property cost.
Ready to move in inventory:
Those who are not willing to wait and invest in the under-construction property, worry not. The builders have ample of unsold inventory to choose from. According to the Q1 of F20, 89 lac units are lying unsold with the developers. Nearly half of the stock is priced below Rs 45 lacs. The number available with the brokerage firms show that another 500,000 units will join the market by 2020.
The market has been fluctuating, and it is advised to the buyers to give every detail a good thought before buying the property. Investing right now, when the prices are low, and so are the interest rates, the benefits given to the buyer is ample.
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