Real Estate Market
Did you know that difficult times can be used to make money in Real Estate Market? All jokes aside. The icing on the cake is a favorable market scenario that favors buyers. It only takes structured market analysis to maximize your returns and find the best deals as an end-user.
The current situation is difficult because the general perception is of economic turmoil; however, the market is flooded with projects, and developers are going above and beyond to attract buyers. This is an excellent time for end-users or long-term buyers to enter the real estate market. When purchasing a new property that has recently been completed or is nearing completion, the end-user is now in control. Several developers offer to pay the loan’s interest rate until the property is occupied.
Residential home buyers are in luck, as interest rates on home loans are at a 15-year low. All banks are now offering home loans with interest rates below 7%, which has significantly reduced EMIs. Consider the following scenario: a buyer paid an EMI of around Rs 800-900 per lakh a few years ago, and it has now dropped to around Rs 700 per lakh.
The simple calculation is that for a Rs 50 lakh property, a buyer will receive an EMI of Rs 28000 after paying a 20% down payment, which was previously between Rs 32000 and Rs 36000 per month.
Today, the EMIs of middle-class homes are lower than the rent of middle-class homes in good areas.
Prices in the residential sector have been low for a long time, making it even more appealing to buyers. Given the current situation, where raw material prices are rising, realtors will have to raise their prices soon. A pandemic situation has caused the developers to maintain their pricing, giving the buyer a window to take advantage of.
Similarly, the commercial segment is extremely beneficial to investors, as market research indicates that demand for office spaces and shopping malls is at an all-time high. Some developers have devised novel investment strategies based on the pre-leased option. In the case of pre-leased properties, the risk factor for commercial property investors is zero. One of the most recent investment options is the fractional investment, which allows you to own a portion of a property and divide the earnings accordingly.
Following the Budget announcement, in which the FM emphasized infrastructure development, the possibility of purchasing affordable properties in outlying areas has increased. Many affordable housing projects are moving away from city centers, but with improved connectivity, buyers no longer need to worry about commuting. When it comes to the Delhi NCR, there are numerous opportunities on the Yamuna Expressway, Sohna Road, Dwarka Expressway, Manesar, and so on. It is not always the case that affordable homes are located far from populated areas, as there are lucrative options in areas such as Greater Noida West, Raj Nagar Extension, and others.
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purchasing a property in a remote location
If you are purchasing a property in a remote location, please consider the location’s long-term benefits. When you first begin your purchase, it may appear to be a wilderness. However, if you wait for infrastructure, the values will not be low. As a result, evaluate the area’s infrastructure plans. Developers are usually more than happy to provide you with this information. The proposed metro lines, for example, are a big draw in the Delhi NCR region. Property near metro lines is always attractive to end-users. So, before you buy, look into the proposed metro plans. Expressways and bypasses also have an impact on property values. If you buy today, you will have to wait two years before you can move in. Your deal is safe if the infrastructure is built at that time or soon after.
If you want to make consistent returns on your property investment, it is a good idea to buy even at a slightly higher price in areas with high rental returns. Rental returns have increased by up to 15-20% in the last year, with 5-10% in the last six months alone. If you have a transferable job and are hesitant to buy in a city where you may move, keep in mind that rising rental returns are in your favor.
It is about time for buyers to capitalize on the improving real estate market.