Tips For Investing In Real Estate
The idea of investing money in real estate is really a welcoming one. The real estate marketing is booming and many people are showing a great deal of interest in real estate investment. One of the biggest makes made by beginner investors is investing money when the prices of the property are so high. This will less likely to fetch lesser or no profits over the course of time. In this article, we will tell you the reasons why you should seriously consider investing money in real estate in the year 2018.
In the past few months, the government of India has taken various measures to regulate and reform the real estate industry. The establishment of Real Estate Regulatory Act (RERA) has given good direction to the real estate market. It is must for every real estate project to comply with the RERA, which mandates the projects to be delivered on time and the money from the buyers should not be spent for reasons other than specific projects. In a nutshell, the RERA will prevent the over-night real estate operators and only provide space for the serious real estate operators.
Currently, the real estate market offers favourable conditions for the buyers. This is due to the combination of high prices, surplus supply and lower consumption. However, you be aware that this situation won’t prevail for longer. You need to make use of this situation as soon as possible. With surplus supply, the potential buyers have better opportunity to negotiate and strike a good deal.
With the implementation of RERA, the operators are speeding to complete the current projects. The percentage of launch of new homes across the eight important states has dipped down by 75.
The RBI has revised the lending rates due to the surplus liquidity in the banking industry. As a result, the interest rates have come down to 8.3% compared to the 9.5% in 2016. With lower interest rates, the buyers can save their EMI costs significantly. As per the forecast, the home loan rates are expected to be low for next few months and also expected to lower down further.
With the robust regulatory mechanism in place, the global investors have gained more confidence to invest in Indian real estate market. According to the industry reports, the Indian real estate sector is expected to gain US$ 4 billion as Private Equity (PE) investments from countries such as Canada, US and Singapore. Additionally, the countries like China, Japan, Qatar, Netherlands and Hong Kong are also expected to invest in the real estate sector.
It is right to say Indian real estate industry is receiving more benefits with the recent regulations. The new environment makes the developers more accountable for their actions and only those comply with the regulations will be able to thrive in the industry.
Before you begin to invest in real estate, you should know the new reforms and regulations of the real estate industry, and then deal with the developers those, who comply with new norms. Keep reading the real estate news regularly to stay updated.