Property investment has always been the one of the most lucrative assets. But there are many factors to consider before you invest in property. So is there ever a ‘good time’ to invest in property?
Demonetisation, Union Budget and various other policies have sent the Indian real estate sector on a whirlwind ride for the better! Industry experts believe NOW is the best time to invest in real estate in India.
The Union Budget 2017 brought about many positive measures for the real estate sector. Affordable housing was given infrastructure status. This will reduce the cost of funding for the builders, which in turn will benefit buyers. Moreover, the capital gains tax period was reduced to 2 years. This will levy less capital gain tax for people selling a house after 2 years of purchase.
Commenting on the Union Budget, Vineet Relia, Managing Director, SARE Homes said, “We welcome the move of the government to give infrastructure status to affordable housing. This status will make it easier for developers to access low-cost funds via Foreign Direct Investment (FDI), External Commercial Borrowings (ECB) and domestic banking assistance. The need for collateral against loans will also stand reduced. Bank lending rates for housing loans coming down is a positive development and will help stir demand in the market and help clear up unsold inventory for the builders.”
Relia, further explains, “Another positive move is to provide developers tax relief on unsold stock as liability to pay capital gains will arise only in the year a project is completed. This will help the developers plan their liquidity better. The move of considering the carpet area of 30 and 60 sq meters instead of built up area of 30 and 60 sq meters will bring in more housing projects under the ambit of affordable housing and will encourage developers to introduce more such projects.”
All these factors contribute towards boosting India’s real estate market. So will you make the smart move and invest in property now or will you watch from the sidelines?