5 Reasons Making It a Perfect Time to Buy Home in India

Home buying is a crucial decision. Whether you are buying your first home or looking for a property for investment, you need to pay attention to many things. There are times when homebuyers hold back their decision of investing in real estate due to adverse market conditions. Recent demonetization move is one of the examples when many people who were almost going to pay for their new homes took backstep.

If you have also been planning to buy a new home and waiting for the right time, the right time has finally come. Yes, you read it right. This is the perfect time to invest in a residential project in India. Just have a look at real estate sites in India and you will find most of them promoting housing complexes due to the reasons given below.

The exponential growth of Indian realty sector: Though the market got hit due to demonetization, it has recovered from it. Various amendments in laws including Rera (Real Estate Regulation & Development) Act and Benami Transactions act have played a vital role in the exponential growth of the market. Further, the exemptions provided in the home loan in the Income Tax Act have also encouraged people to buy property.

Low-interest rates on a home loan: There are a limited number of people, who can pay the complete amount for their home from their pocket. With a high ratio of middle-class people, in India, most of the people apply for a home loan to realize the dream of owning an apartment. What if you are looking for a home loan and get it at impressively lower rates? Yes, this is possible now. After demonetization, banks got a colossal inflow of funds, which helped them bring down interest rates. So this is the right time for you to grab the opportunity and buy a flat. You should start searching properties sites in India.

Higher returns: The returns on investment in the real estate sector are expected to grow in near future. This will make this sector a favored choice for investment while leaving behind gold and fixed deposits.

Feasible property prices: Increasing demand for the affordable projects and government’s support to builders will definitely boost the number of quality residential projects. It will also help you find a property at reasonable prices.

The launch of PMAY: Since its launch three months back, the government has already got more than 1.5 crore applications. The Pradhan Mantri Awas Yojna (PMAY) focuses on helping economically backward section get their own home with the help of private builders.  This move has remarkably increased the demand for affordable housing, which will also help the government meet its goal of ‘Housing for All by 2022’. Just check any property site and you will be amazed to look at the increasing number of affordable housing projects launched by builders.

These are just five reasons to help you understand that this is the right time to use your savings in realizing your dream of buying your own home.

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How to make money by investing in real estate in India?

Though making money and earning profits in the real estate market is comparatively easier than other investment ventures like stock and mutual, you still need some tricks and strategies to maximize your return on investment from this sector. Like any other business, you need to spend ample time on research and analysis to earn well.

You cannot expect to earn money in realty market by simply buying a home or a commercial property.From selection of the project to the right time of selling and advertising your house for rent on different property sites in India, everything needs to be done effectively. If you are a first-time investor and confused about the ways to earn money from real estate market, here are three simple ways for you.

Appreciation: Price appreciation is one of the most common ways to earn profits in this market. This is the way our ancestors created wealth from it. People who had huge land parcels made a lot of money when the government started SEZ projects.

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Just wait for the market when it goes down to buy a suitable project at cheap prices and sell it off when the market improves. For instance, now prices of commercial as well as residential projects in most of the cities in India are down due to demonetization. But these are expected to improve in near future due to the amendments made by the government. So now you should buy property in India and wait for appreciation in the value to sell it at right time.

Rental income: If you own residential property in cities like Gurgaon, Mumbai, Bangalore and Pune, where demand for rental homes is high, you can make good money by renting out your extra home. This is one of the best ways to make a regular income until you plan to sell the second home for high capital gains. However, you need to be careful while renting out your house and think about the maintenance expenses as well.

Listing on real estate site: Remember, the internet is a vast ocean of information and opportunities. Whether you are a property buyer or a seller, Real estate site in India can help you a lot. All you need is to understand your requirements and find a suitable site. For instance, if you want to sell your property at high prices, list it on a high-authority and reliable website. Homebuyers will find your residential project and get in touch with you for further discussion. In this way, you can also save the time and money wasted on agents.

Even though investing in Indian realty market is easy, it also has its own risks and you need to work on your part to minimize this. Careful research, right project selection at a strategic location and timing are some of the important points to earn huge capital gains from the investment made in real estate market.  

Should you buy heritage property in India or not?

There are people who love antique and old things. Even when it comes to buying a home, they search for heritage properties made decades back. But is it really wise to invest in heritage properties as it comes with its own challenges? From taking so many permissions to selecting the material, at every step you need to be extra cautious while investing in a heritage property.

When talking about heritage zones with ample choices of old properties, cities including Delhi, Mumbai, Ahmedabad, Hyderabad, Pondicherry, Varanasi and Goa top the list. There are many property websites specifically dealing in heritage properties. But the problem is that you cannot always rely on these sites and the agents because these cities are full of money spinners when it comes to tourism. To prevent guides and agents from cheating tourists, the authorities here are planning to pass legislation declaring heritage zones.

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Now again comes the same question, “is it wise to buy a heritage property in India?” Looking at the huge demand for heritage hotels from tourists, many properties in Delhi, Rajasthan, Agra, and Lucknow have already been converted into hotels and resorts.

Approval:

Whether you want to use heritage property for commercial use or for residential purpose, you will have to face many troubles when renovating it. There are many restrictions on development and improvement of heritage properties. The authorities don’t want the buyers to spoil the look and feel of the property, which was created after a lot a research and creativity. Further, to renovate the old structure, you need to find an architect who has experience working with heritage properties.

Renovation

Once you get approval to make changes in the building, you need to work on every aspect. From wiring to lighting fixtures, paint, interiors, you need to pay attention to everything. Further, to fix issues like windows and doors, you need to explore antique markets as you cannot just buy a window randomly to fix the problem. You need to find a matching window in local second-hand market.

Finding heritage properties in India is not difficult, but making them livable is the major challenge. From getting permissions to ensuring the character of the old building, you need to be extra careful at every step.

If you are looking for a suitable heritage building in India and wondering from where to start your search, just start exploring the best real estate websites. You will definitely get a right home, which not just draws the attention of passer-bys but also links generations.

Leading Real Estate Website in India Highlights Role of PE in Indian Realty

According to a real estate website in India, lending to builders by banks has more than halved over the past two years. Lending by banks stood at 55 percent in 2014 but last year fell below 24 percent. The poor performance by the countries real estate sector has been stated to be the decrease in lending by banks to builders.

Why Builders Are Considered Riskier by Banks

The high proportion of non performing assets on the balance sheet of builders have led banks to lower lending to builders. Greater provisioning for risk and rising losses in the real estate sector have also led banks to extend less credit to builders in the country.

New Sources of Funding

While builders who construct propertyin India are losing their charmed status in the eyes of banks, private equity players have been lending to builders and their funding accounts for sixty percent of the funding received by builders. Notably, the proportion of funding from private equity players to builders comprised a mere 20 percent of the funding received by builders seven years ago.

According to this real estate website the funding received by builders from private equity players is not restricted to PE firms buying equity in the builder, rather the funding to builders from private equity players has moved on to a quasi equity structure.

The Scenario in the Past

Seven years ago Initial Public Offerings were the preferred means for builders to raise capital, yet today because many builders are perceived to have a poor credibility this route to raise money is no longer as viable for builders. Private equity players share of investment dropped from 3.6 billion dollars in 2015 to 3.1 billion dollars last year. The average deal size last year was 56 million dollars.

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What the Future Holds

Real estate in India is almost certain to mature in the future and changes in the regulatory framework and market forces will ensure that PE firms play an even larger role in Indian realty in the future. Notably, currently the huge excess inventory of real estate in India has driven private equity players to shift their focus to investing in commercial space rather than investing in residential space.