Why Is It The Best Time To Invest In a Home?

By Basav Mukherjee, CRO, Columbia Pacific Communities
April 17, 2019

If realty investment is all on your mind, here is why it is the most betting time to undertake housing investment.

Across metros, developers have not only shifted their focus on affordable housing projects but also emphasising on design efficiencies to attract homebuyers. The spurt of the low-cost housing units across metros coupled with well-designed products and various initiatives undertaken by the government has made it the most suitable time for potential homebuyers to plunge into the market. Besides, several other factors can be leveraged for realty investment such as:

Big players have forayed into the affordable housing segment, and offering optimised apartment sizes. Several schemes and heavy discounts have also been rolled out to clear the existing inventory.

New product categories under development such as senior housing (https://www.99acres.com/articles/best-placesto-settle-after-retirement-in-india.html), co-living, student housing etc. are creating additional value.

  • Banks are offering attractive interest rates. There are many financial schemes available for buyers, including deferred payment plans and subvention schemes that have reduced the risk as well as made it easy for buyers to take the plunge.
  • The government has reduced the GST rates for under-construction apartments to five percent from the earlier 18 percent and for the affordable housing sector to one percent.
  • Besides, with the introduction of Real Estate (Regulation and Development) Act (2016) (RERA), homebuyers are protected by law for any delays or issues with the delivery or quality of their home.

There is no excuse to defer home buying anymore. However, homebuyers sometimes fail to factor in the cost of stamp duty and registration of their apartments. This is not a small amount, and it may come as an unpleasant surprise. One of the lesser known facts is that senior citizens and women pay lower stamp duty in most states.

Brokers are an essential part of the real estate distribution network since they have much superior information and intelligence about real estate. Good brokers understand the needs of the consumer and try to offer the best solutions to them. In secondary sales, brokers play a crucial part as they typically know the actual prices of the micro market and understand the factors impacting the real estate sector in the locality. Also, brokers have relationships with developers and are therefore able to offer the best rates to the homebuyer. However, technology has changed the landscape. Customers and developers can now get a lot of data, recommendations, reviews, experiences and references from digital tools.

For the best value, the homebuyer should opt for a pre-launch unit in an under-construction project of a reputed developer. This will entail paying only the lowest price and will also offer the best payment terms, bank loans and amenities. Besides, an investment in an under-construction project gives the best appreciation to the buyer. This does carry the risk of delays, but since the customer has protection under RERA, the risk is now much less. However, if the customer is risk-averse, has ready capital, it is better to invest in a ready-to-move property. Ready-to-move properties have no surprises and customers can take immediate possession. The additional benefit is that the buyer can immediately lease the home and earn an income.

If you planning to invest in Bangalore for a dream home then some of the important destinations offering high value with self-sufficient and quality projects from reputed developers are Budigere Cross, Yelahanka, Hennur Road, Devanahalli and Sarjapur Road.

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