Real Estate Investment: Owning a home has been one of the most noticeable trends since the outbreak began. Work or school from home has become the new normal, encouraging the millennial inclination toward properties that provide them with their own space and a sense of security during these trying times.
Furthermore, with the government focusing on sector revival, the real estate industry has seen the implementation of several regulations and policies. These initiatives (for example, RERA and GST), combined with a broader agenda such as Housing for All and the Smart Cities Project, create a favorable environment for Real Estate Investment. Besides this, falling interest rates in established markets act as a strong motivator, encouraging people to consider investing in this sector. Bank interest rates are at an all-time low. Buyers who were hesitant to purchase property due to project delays now have a large and affordable ready-to-move-in inventory to choose from. However, before making a decision, homebuyers should consider the following factors:
Credibility of the developer
You should take a developer’s financial standing and reputation into account carefully. Buyers should conduct extensive research on the developer’s market credentials, financial strength, past delivery track record, capacity to manage multiple projects, unsold inventories, and pending cases before making a purchase. Caution is required because the market contains a large number of fraudulent operators who are looking for situations where they can profit from the financial distress of the customers.
Project features and attributes
As a homebuyer, you should be familiar with the property in which you are investing. Some factors to consider include the project’s location, supporting urban infrastructure, connectivity, future potential for habitation, education, and health, and entertainment facilities in the surrounding area. The focus on project features and attributes should be increase. Currently, RERA ensures a basic level of project monitoring and control.
Cash flows and profit
The cash outflow and return expectations are determine by the purpose of the real estate investment. Projections for various types of investments should be considered, whether it is expected cash flow from rental income or an increase in intrinsic value due to long-term price appreciation. Tax adjustments, such as set-offs for interest on home loans and capital gains savings, must also be consider.
Project fundamentals
The primary goal of RERA is to protect the interests of buyers. The chosen property must be RERA-register. Such registrations demonstrate that the developer has the professional capacity to manage the project’s completion. The delivery will also include amenities, a master plan, a floor plan, a unit plan, and utility spaces. Once again, RERA registration binds developers to time, cost, and quality targets. Another way to avoid differences is to see if the developer has any pending legal cases listed in RERA.
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Home loans
They have been at an all-time low, which has greatly benefited homebuyers. There are four types of mortgage loans available (Fixed Rate, Adjustable Floating Rate, Interest Only, and Zero Down Payment). They should be aware of the terms and conditions, as well as any additional fees imposed by financiers. Consider negotiating a lower rate, lower insurance premium, or a waiver of processing fees before making a decision.
Buying a house is not a decision that happens in a matter of minutes. By keeping these few things in mind, people can achieve advantageous deals and a dream home.
