inside times of india_page … · lines five reasons why buyers should invest in real estate now....
TRANSCRIPT
Thanks to a host of institu-tional reforms on the part ofthe government, the real
estate sector has emerged as alucrative investment option. Thereal estate sector has becomemore transparent and moreand more buyers as well as in-vestors have come back to thesector. With RERA in place, thesector has emerged as a moretransparent and trustworthy op-tion for buyers. So they are backwith a bang to park their moneyin the sector. Festive season isconsidered to be the most idealtime to buy a home and to in-vest in properties.
The second quarter of everyfinancial year is known for its
festival bonanzas. This is anidealoccasion for the first timeconsumers to buy a home
or a commercial space.Amit Goenka, MD &
CEO of a leading fi-
nance firm, says the real estatehas emerged as a viable optionfor investment. He says, “Theimplementation of The Real Es-tate (Regulation & Development)Act, 2016 (RERA) has brought alldevelopers under a commongovernance regime.” He out-lines five reasons why buyersshould invest in real estate now. Compelling price: Real Estatesector has seen a subduedprice growth in last 3 years dueto various transformations in
regulations. Withincreasing input prices,stagnant sale values, it has be-come imperative to reduce in-ventory levels and consequentdebt levels via price reductionand attractive schemes like sub-vention, GST waiver, car park i.e.reducing the overall cost ofownership by a reasonablemargin. With inventory off-takenumbers looking better over thelast 2-3 quarters, theseschemes, discounts and price
benefits are unlikely to last.Safer investment: The imple-mentation of demonetisation,RERA and Goods and ServiceTax (GST) has seen the completetransformation of the unorgan-ised and opaque real estatesector into a regulated, trans-parent, affordable and con-sumer-friendly asset class. Government mandate: Thegovernment's flagship mission,‘Housing for All', focusing on af-fordable and mid-segmenthousing, provides 6.5 per centinterest subsidy (up to `2.67lakh annually) under PMAY,which has been responsible forenhancing affordability. Tax benefits: Homebuyers canclaim tax benefits on homeloan for both principal repay-ment and the interest paid.Principal repayment qualifiesfor tax deduction under section80C of the Income Tax Act,1961. Apart from principal re-payment, you can claim de-duction of up to `2 lakh for in-terest payment on home loansunder section 24(b) of the Act. Infrastructure Boost: The gov-ernment gave top priority to
infrastructure developmentby setting up the National
Investment & InfrastructureFund of `40,000 crore. The
high priority to highways, withrecord construction of 25 kmper day, has given real estate aconnectivity boost. Cheap financing: Home loanshave become easier, faster andcheaper to avail. Almost 90 percent of loan-to-value (LTV) ratiois available in affordable hous-ing for loan tenure of up to 30years at very competitive rates.Also various subvention and de-ferment schemes allow for lowequity contribution like 5 per
cent upfront and balance to-wards completion or com-mencement of EMIs i.e post Oc-cupation Certificate, making itrelatively easier to fund apart-ment purchase. Thus, pavingthe way for real estate growth.
A developer says, "Real es-tate sector is booming in Indiaand there is a huge demand forresidential spaces. Growth inthe real estate market can beattributed to favourable demo-graphics, increasing purchasingpower and lending benefits of-fered by banks." Real estate willalways be a safe tangible assetbecause there will always be avalue for land and home.
Ankit Kansal, Founder, andMD of a leading real estate firm,says, “RERA, demonetisation,and GST have definitely resultedin muting the housing demandin the shorter run. But in thelong run, they are playing an in-strumental role in bringing inmore organisation and trans-parency in the sector. Every realestate project now need to beregistered with RERA to ensuretimely delivery safeguard buy-er's interest. This has resulted intremendous buyer confidenceboth in the domestic as well asNRI markets."
With formalisation in thesector, new launches havestarted to come back into themarket. Prices have beenmostly stable or moving down-ward during the recent quar-ters, which has affected buyingdecisions of the homebuyersand also resulting in overhanginventories at the developers'end. A healthy balance be-tween the end-user and in-vestment activities will be in-strumental in containing thespeculative forces.
FESTIVE SEASON BRINGS
CHEERS TO HOMEBUYERS
WITH MANY OFFERS
RIGHT TIMEIS HERENOW!
02
MAKE YOUR HOMEBURGLAR-PROOF
03
MOVE INTO YOURDREAM HOME
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I N S I D E
04
MAKE YOUR HOMESHINE BRIGHT
ADVERTORIAL, PROPERTY PROMOTIONAL FEATURE
YOUR REALTY COMPANION SINCE 1998
BENNETT, COLEMAN & CO. LTD ● ESTABLISHED 1838EPAPER.TIMESOFINDIA.COM
Ahmedabad, October 21, 2018