Thursday 19 October 2017 News Updated at 07:10 AM IST
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Buying a home this festive season - Deccan Herald
Buying a home this festive season
Ganesh Vasudevan
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DeccanHerald
The festive season is considered to be one of the most active periods for the realty sector. This time of the year is not only synonymous with celebrations but is also considered highly auspicious. Many people prefer taking big decisions like property buying and moving into a new house around this time since they believe it would increase their wealth in the future. People also have higher disposable income during the festive season as many companies give bonuses to their employees. To attract more buyers, most of the builders also give attractive offers.

Positive signs
The realty sector in India has been sluggish for the past two to three years. Many realty experts are expecting this festive season to be fruitful for the sector since many new reforms have been introduced in the past one year to safeguard property buyers. Factors like restricting cash payments, reduction in home loan rates, focus on affordable housing, clarity on goods and services tax (GST), real estate regulatory act (RERA), and creation of regulatory authority in every state would definitely have a positive impact on the sector this festive season.

The current home loan rates are the lowest in a decade. Last December, two new categories were added under the Pradhan Mantri Awas Yojana - Credit Linked Subsidy Scheme. This made families having annual income up to Rs 18 lakh buying middle income group (MIG) housing units, having an area up to 1184 sq ft, which is also eligible for home loan subsidy. Since the scheme is eligible only till the end of 2017, many property seekers are expected to finalise their property decision in the next three months, adding to the festive season rush.

In the past six months, many developers in the country had to stop property sales since they had to register existing projects under RERA and realign their sales and marketing as per the new norms. Since people spend their life savings in buying a house, even property buyers were cautious and stalled their property buying decision till they got clarity on RERA. Most of such projects and property buyers are back in the market and developers would not leave any chance to woo property seekers in the coming months.

Property values have not appreciated much in Tier-1 cities in the past two to three years. Buying a property in the next three months would be a great choice not only for living but also from an investment perspective. The capital values in all the major cities in India are expected to increase in the next three to four quarters. The expansion of cities and infrastructure are expected to play a pivotal role in boosting the property prices in the coming years. Thus, investing now is certainly a wise decision.

The current market is ideal for serious buyers for both new and resale properties as both developers and existing property owners are ready to negotiate. It’s advised to buyers that they should do a thorough property check before investing and not get lured by attractive deals offered during the festive season.

(The author is CEO, IndiaProperty.com)


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