News: Cover story - The advantage is on your side-08.01.2017
Date created 08.01.2017 19:15:46
Cover story - The advantage is on your side
Are you a first-time home-buyer? Is the ongoing real estate climate making you a little skeptical about home-purchase? Fret not, say experts.
Mark Twain once said, "Twenty years from now, you will be more disappointed by the things you didn't do than by the ones you did do." So, if you wish to postpone your home-buying decision in the wake of demonetisation, chances are high that you might regret it later. In fact, experts believe that this measure, along with the Real Estate (Regulation and Development) Act, 2016 (RERA), will align the real estate sector to international standards of doing business, thus resulting in more fund flow from institutional investors, banks and higher unit sales. Hence, don't let your anxiety come in the way of one of the most important decisions of your life.
"Mumbai and the MMR are yet to witness any significant reduction in prices or additional incentives but that doesn't mean that customers shouldn't try securing their dream abode. In fact, great customer service seems almost guaranteed, especially if you are a first-time home-buyer," says Rohit Poddar, MD, Poddar Housing.
The Union Budget 2016 bought some cheer for first-time home-buyers and the realty market. "The introduction of an additional interest deduction of Rs 50,000 a year for loans upto Rs 35 lakh (provided the house value doesn't exceed Rs 50 lakh) was a welcome move. Besides, with the RBI keeping the repo rate unchanged at 6.25 percent and the game-changing policy amendments such as RERA, the home-buying ecosystem has tremendously improved, thus setting the momentum for a home-pur chase," says Ashish N Shah, COO, Radius Developers.
Developers today are coming up with several schemes and incentives to lure first time home-buyers. "To cater to and clear the doubts of customers who have been sitting on the fence post demonetisation (fearing the market will crash which is unlikely), developers are offering flexible payment plans, price protection guarantee and other such schemes," says Munish Doshi, managing director, ACME Group.
The government had announced several other key initiatives as well that had a strong impact on the realty market. "Exemption from service tax on construction of affordable houses upto 60 square metres under any scheme of the central or state government including PPP schemes will not only boost the affordable housing segment but also the sentiment of first time home-buyers," says Shubika Bilkha, business head, The Real Estate Management Institute.
Other key decisions such as 100 percent deduction for profits to an undertaking in a housing project for flats upto 30 sq metres in four metro cities and 60 sq metres in other cities, approved during June 2016 to March 2019 and excise duty exemption for ready mix concrete announced in the budget, will bolster the prospects of first-time homebuyers.
"Home-buying can be nerve-racking. And since the real estate market's growth is cyclical in nature, now is an apt time for first-time buyers to own homes at a good value and catch the next upswing cycle. This will ensure a higher return on investment in the medium-to-long-term horizon," says Cyrus Engineer, senior VP sales and marketing, Shapoorji Pallonji Real Estate.
Besides the incentives offered by the government in order to get the market back on track, the developers are also doing their bit to lure the fence-sitters. "From offering semi-furnished and furnished apartments with modular kitchens and built-in wardrobes to other stimulants like stamp duty and registration waivers, waivers on floor rise, memberships, gold coins, airline points, among others, there is an increase in the innovative schemes available to home purchasers," says Fali Poncha, director (residential and land) Mumbai, Knight Frank India Pvt Ltd.
The government has initiated a slew of reforms in the real estate sector such as the Real Estate Regulation Act (RERA), GST, REITs and Benami Transactions (Prohibition) Amendment Act, 2016, the recent demonetisation, besides reforms related to FDI, in order to bring in transparency. Hence, now is the right time to buy your dream home as the realty sector is undergoing an overhaul and expected to boom in the coming years, which will be beneficial to the consumers.
Shehzin Shaikh, Times Property, The Times of India, Mumbai
