Buying a property is a milestone in every household. Like any big investment, this huge financial move is bound to bring in a lot of research and investigation to make sure you are making the right choice and, most importantly, making this choice at the right time. The coupled effect of the newly introduced affordable housing segment and low-interest rate structure, along with the positive aftermath of demonetization on the real estate scenario, has made 2017 the perfect time to own a home instead of renting one.
Rent rates are going up
Every passing year brings in a hike in rent rates, and 2017 is no exception. Buying a house may seem like a much greater investment when compared to a little expensive rent, but the benefits are multi-fold. With a decent amount of savings and a steady income, getting a housing loan is much easier now. More ever, rent will always spike up with inflation, but your monthly installment against the home loan will remain fixed.
The sooner you make this long-term investment, the better
Buying a home is the investment of a lifetime, and it is always beneficial to invest at a younger age. The value of your home is bound to increase in the upcoming years. You can always sell the property for almost double the investment value and use the wealth accordingly for your child’s college fund or your retirement. Why spend your hard-earned money in the form of rent when you can use it yourself in your later years.
Positive effects of Budget 2017 on real estate
Budget 2017 brought in some fantastic measures for the benefit of both buyers and developers. Buyers are subjected to pay notional tax for their properties only after a year of project completion, instead of paying it right from the time the agreement is signed. This measure gives you a year’s extra time to pay off your taxes, making 2017 the best year to invest in your dream home.
Demonetization – A blessing in disguise
The ending of 2016 witnessed a huge turmoil in the Indian economy when the monster of demonetization showed up, targeting the black money market. The overnight ban of 500 and 1000 Rs notes brought the whole nation to a stand-still. However, demonetization can be considered as a blessing in disguise for home buyers in 2017 with more transparency in financial transactions, considering the fact that most properties are purchased in black. The recent banishment of black money assures timely project completion and a devoted governing body with promised amenities and facilities.
Bills which have created a positive impact on real estate
The real estate regulatory bill (RERA), introduced in 2016, came up with some spectacular reforms to smoothen out property deals for potential home buyers. The RERA ensures that the regulatory bodies are branched out state-wise to gain better control over the governing system. This bill also assures timely project completion. Real estate developers are expected to deposit 70 percent of their project funds into a pre-designated bank account to ensure the funds are not used up for other projects. This, in turn, avoids delay in the completion of the ongoing project and provides more transparency to the home buyers.
Another bill which has introduced some impressive reforms, beneficial to the real estate industry, is the Goods and Service Tax bill (GST). This bill focuses on replacing a cluster of taxes, like VAT, CST and excise duty, with a single tax and hence bringing in even more transparency in the real estate industry. As a reform, the heavy taxes levied on construction materials will be eliminated, leading to significant reduction in construction costs. Also, the GST bill will eradicate central, state and local taxes making the transfer of raw materials easier between states. Developers can now have a centralised warehouse of high-quality construction goods which, in turn, benefits potential home buyers.
With such magnificent reforms which ensure a simplified tax structure, reduced construction costs and transparent transactions, 2017 is bound to be the best year to buy a house. It is time to take the leap and invest in an address that gives you the best of everything at Radiance.
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