Is the year 2019 the best time to buy a house?
The time has come that the developers are really willing to offload their inventory while offering various incentives. So, what can the homebuyers expect in 2019? Let's examine different aspects of Indian Real Estate and figure out if the year 2019 is a right time to buy a house.
The time has come that the developers are really willing to offload their inventory while offering various incentives. So, what can the homebuyers expect in 2019? Let's examine different aspects of Indian Real Estate and figure out if the year 2019 is a right time to buy a house.
Over the past few years, there have been several positive developments in the Indian Real Estate. Some of the greatest schemes that make an impact are Pradhan Mantri Awas Yojana (PMAY), the infrastructure status granting to affordable housing, 100% tax exemption on the profits for developers building affordable houses, RERA Act implementation, and the subsidy schemes for first time home buyers. The intensive infrastructure development also makes it just a right time to invest in real estate provided that the completion of the infrastructure project may result in the rise in property prices.
With all these aspects, timing can be everything and that goes double for buying a dream home. The levels of interest rates, pricing, the calendar month of the year and your personal financial aspects all can be essential factors on if you should buy a house in 2019.
Affordable Housing in 2019
When you take a look in the past few years, you'll notice that many developers have launched affordable and mid-segment housing projects. Gujarat has one of the states where the demand of affordable housing is increasing rapidly. Industry experts are taking cues from the demand and building impressive projects in the reasonable budget. That makes 2019 a year of amazing yet affordable real estate projects giving homebuyers a great reason to buy a home in 2019.
Reduced GST Rates From April 1st
The GST Council has reduced the GST rates on Real Estate and it turned out to be quite positive for the home buyers as well as the developers. Over the years, there have been issues regarding the transaction costs and affordability have plagued the real estate and now these issues have been addressed pretty well. The rates of the under construction properties have been reduced from 12% to 5% and the developers will also be relieved as this could potentially be a great selling factor for under-construction properties. Also, the fact that the rates of affordable houses has also been reduced from 8% to 1% and that will help the sector grow on a big scale. The removal of Input Tax Credit (ITC) will also help GST implementation much easier but now they will have to deal with the increased cost of 18% and they must account for the same when planning project costs and the cash flow.
Second Home Will Witness A Revival
The modern day home buyers are increasingly exposed to travel a lot across different tourist destinations and thus the demand of uniquely designed houses in such tourist destinations.
According to Dhruthi Reddy Kasu, director, Kasu Assets, "People appreciate and value homes that are unique in design, as it enables the home buyers to have a fresh experience. This has a direct impact on the second homes market, where more people want the opportunity to have a getaway with family and friends, away from their otherwise urban lives." Punit Agarwal, CEO of Nirvana Realty, says that the second homes market remained pretty much stagnant over the past few years.
HNI investment in Indian realty and returns on investment
Since the developers were holding back on launching new projects, the demand and supply gap was likely to increase and therefore, it must have resulted in higher return on investment. Niranjan Hiranandani, co-founder and managing director of the Hiranandani Group, points out that for investors, real estate is about getting remarkable appreciation in capital values or rental income. At the same time, it could be a method of capital creation for others. "Given the prevailing price points, the first half of 2019 would be an apt time to buy a home. This is a factor which should be taken advantage of, by the home seekers," he maintains. Developers have also gained more clarity of what the buyers are looking for. Dhaval Shah, joint managing director of the Parinee Group, concludes that offers like fully furnished homes, easy subvention schemes and relatively easy availability of home loans, are some of the reasons why one should not wait to make a real estate investment in 2019.