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Nine reasons why this is the best time to buy a house
Tax deductions on home loan interest, credit-linked subsidy schemes, and tax holidays for developers of affordable housing projects have provided the necessary incentives and policy support. Low ticket prices and better financing terms have kept demand resilient for such projects.
The real estate sector is one of the most important contributors to India’s economic development. It is the second largest employer and accounts for a significant proportion of investment demand and fixed asset creation, along with extensive forward and backward linkages to many allied sectors.
The residential segment, in particular, is of crucial importance given that property accounts for a significant proportion of an average Indian household’s asset ownership. Thus, the need to incentivise home ownership through a calibrated policy approach, both on the demand and supply sides, cannot be overstated.
- Implementation of RERA
- Affordable housing
- Home loan rates are at the lowest
- Reduction of stamp duty
- Structural changes
- The demand for plotted villas and bungalows
- Author : SHALIN RAINA is managing director, Residential Services, C & W.
- source : https://www.moneycontrol.com/news/business/real-estate/nine-reasons-why-this-is-the-best-time-to-buy-a-house-7342841.html
- in 2016 and creation of a proper framework to ensure project standards, funding mechanisms and timely disposal of cases have generated trust and added stability to the market. According to a recent study by the Boston Consulting Group (BCG) and Omidyar Network, 70 percent consumers are aware of RERA’s status as a regulator and 76 percent of these consumers have stated that they will buy only RERA-registered properties.
- as a segment, has witnessed major traction over the last few years, largely due to the government’s policy push and has gradually attracted institutional capital as well. Tax deductions on home loan interest, credit-linked subsidy schemes, tax holidays for developers of affordable housing projects have provided the necessary incentives and policy support. Low ticket prices, better financing terms and various amenities provided by developers have kept demand resilient for such projects.
- for more than a decade (6.75 percent currently on a loan of Rs 30 lakh or less), and some banks such as SBI have waived off the loan processing charges. The gap between the cost of financing an apartment and the cost of renting one in some micromarkets and for mid-segment projects has narrowed, thereby incentivizing home purchases.
- charges in Maharashtra and Karnataka (for affordable housing) have not only driven growth in transactions, and boosted the overall sentiment. In its recent Budget, West Bengal announced cuts in stamp duty and circle rates, following the footsteps of the other two states.
- brought about by remote working trends have highlighted the need to own one’s own apartment that is spacious and environmentally friendly. WFH has forced families to spend greater hours at home and many are now are looking for spacious homes that have greater focus on health and safety.
- have also been on an uptrend across the peripheries of major cities. Locations such as Whitefield (Bengaluru), Gurugram (Delhi NCR), Shilaj (Ahmedabad), Joka (Kolkata), have been witnessing higher interest amongst Millennial homebuyers with rising affordability are also driving the housing demand. Millennials are resorting to home buying at an early age (late 20s to early 30s) unlike their predecessors, owing to improved affordability, faster rise in incomes, promising job market outlook, and the fondness to enjoy superior lifestyle.
- Ultimately, residential transactions are intrinsically related to the trust and confidence of homebuyers since it involves a huge investment. Implementation of the Special Window for Affordable and Mid Income Housing (SWAMIH) Fund to provide last mile funding to stalled projects is a crucial initiative that is helping restart projects and deliver completed homes to numerous homebuyers. As more projects are delivered and funding challenges are addressed, it is likely to have positive spillover effects on broader market sentiments.
In short, the residential sector is currently a buyers’ market and is likely to remain so in the near future. This is certainly the right time to buy residential property and we advocate prospective homebuyers to make investments into residential assets. However, consumers are also advised to do complete due diligence on the developer and plan their finances carefully while making the investments.