There has always been an argument whether commercial or residential property will yield better returns. Buying or investing in a property need not always means making profits. However with the recent alterations in the real estate field, buyers can now make investments without worrying about the returns. This remains true for buyers who are investing in residential properties for reasons of their own. Indian real estate market has evolved from the last decade. It is now seeing more investors than before.
Favorable market value
Residential properties have made a comeback in India with a new face. Luxury apartments being the latest trend is attracting a lot of buyers. A steep rise can be seen in this segment in terms of profit. It is estimated that value of the apartment rises about 7 to 10% every year which is more when compared to rise in the rates of land which stands to 5%. Moreover a fully constructed apartment will never face a depreciation in value in the future years. This leads to many buyers investing money in residential property.
Demand in residential properties
Real estate professionals have experienced a huge demand in properties from the last 4 years. Apart from metropolitan cities, two tier and three tier cities have experienced growth in luxury apartments. Urbanization is another factor that contributes to the demand. With constant expansion and families been shifting to big cities, cities do require to expand as per the requirements. For instance, one decides to check properties in Hyderabad, he will definitely find apartments for sale in Hi-tech city, Hyderabad. which is the latest residential area.
One of the major benefits that buyers receive when buying a residential property is the tax benefit option. Buyers are exempted form GST when they plan to buy a ready to move in apartment. As per new law, buyers not only save on tax but also on interest. Thus it becomes one of the most desirable option for buyers from investment point of view. Another added benefit that buyers receive is that of reinvestment. One can sell and reinvest in another property without paying taxes on the gains incurred. Such benefits are not applicable on other options like that of mutual funds or shares.
Investing in residential property is no day a bad idea. Investors look in for residential property not only as an additional investment but also to secure their future. It is important to note that residential properties in India have experienced a growth due to numerous reasons. Investors prefer to buy a property during the development stage and either sell or rent it out once the project nears completion. This trendis one of the reasons why India has been witnessing high growth. Another factor that contributes to the growth is the unforeseeable future. NRI prefer buying a property so that they can reside after retirement.
Loans and experts
Bank also lends support to buyers looking to invest in housing or a residential property. Having lower the interest rate to 9.25% motives them to own a house rather than taking up loans for other factors. With over car loan and personal loan being touched over 15%, buyers seek housing loan as it is comparatively cheaper.
No expert advice is required in case of investing in a house or property. Whereas in case of mutual funds, one sees advice of experts or professionals in order to have a safe investment. Thus, no paid experts are required when investing in a residential property.
The major reason as to people keen on investing in a residential property is the additional hike that they would receive in case of real estate rates increases. Real estate is not a steady industry. Its fluctuations tend to affect the residential property. This unexpected rise or fall of the rates per sq.ft affects the overall price of the property. For instance, you decide to invest in 3 bhk flats for sale in Kukatpally, Hyderabad. Once you have signed the documents and given the down payment, the price would remain the same until the property is handed over. In such a case, the slight increase in the price will boost your flat rate even before it is completed.
There are several first time buyers who were initially skeptical about the buying process, now see to be confident in investing in a residential property. Matching to the latest trends in India, they prefer investing in a luxury apartment than a regular one.