READY-TO-MOVE HOUSES ARE GREAT INVESTMENT ASSET
The residential real estate industry is registering significant changes on the ground after RERA came into force across the country. Other reasons attracting buyers to this asset class in today’s market environment:
1. IMPACT OF GST
The implementation of GST has reduced tax burden on buyers purchasing ready-to move-in apartments.
2. RERA ERA
With RERA in place, dubious developers will diminish in number; over the long term, as the strict guidelines ensure that only serious and genuine players operate in the market. Thus, the confidence of homebuyers has increased and they are beginning to enter the market in greater number than before.
3. COST FACTOR
The real estate sector has gone through one of the worst downward phases in the last couple of years, resulting in fewer new launches, price reductions, and higher unsold inventory.
4. DISCOUNTS, FREEBIES
These dynamics induced developers to offer lucrative deals, discounts, and lot of freebies to attract buyers.
5. BUY, OCCUPY, OR RENT OUT
Therefore, it makes a lot of sense for buyers to invest in ready-to-move-in projects rather than wait for new projects to come up over protracted periods of time.
6. RENTALS, DELAYS, COST OF EMI OUT GO
Most of projects are patronized by buyers who avail bank loans, implying a significant financial burden. Buyers have to pay EMIs as well as the rent of current house while awaiting completion of projects.
7. RENTAL INCOME
A lot of investors buy houses with the objective of earning rental income, along with an eye on the eventual resale to cash in on capital appreciation.
8. INCOME FROM DAY 1
Purchasing a property in a completed project helps them to immediately start earning out of it through rentals rather than waiting a few years and locking their money away in a non-income generating projects.
9. DEVELOPERS DIVIDEND FOR
Selling ready-to-move-in properties obviously works well for developers, as it helps them offload their unsold inventory and get the much-required liquidity to further invest in projects which are in demand.
10. OF STABILITY AND PEACE MIND
Your home will not only give you stability and peace of mind but also make you emotionally much stronger to take higher risks in life. (The author is CEO of Anarock Property Consultants)