News: Realty queries: Don't let GST or RERA delay purchase decisions-19.08.2017

Realty queries: Don't let GST or RERA delay purchase decisions

GST and RERA have just kicked in.Should I wait to purchase a new property or should I buy it right away?
Developers are trying to ensure that they adhere to the new systems and taxes. If you are planning to purchase an office that is ready to move in, you should surely not wait because of GST and the Real Estate Regulatory Act (RERA). Ready to move in properties remain out of the GST and RERA ambit and hence should have no impact on the timing of your decision to purchase a new office. However, in case you are planning to purchase an office that is currently under construction, then there will be impact of GST and RERA. Yet, I feel that there may not be much benefit in waiting; as GST shall need to be paid even later (unless the Government decides not to charge it or if the property is fully completed and GST would not be applicable on it anymore). And even as far as RERA is concerned, delaying your decision to purchase may not really help as RERA is principally designed as an Act to help property buyers.

What are the important aspects that I need to keep in mind?
Location and building quality are important factors which determine rents. Hence you need to be sure if you want both or if one factor is much more important than the other.It is also vital to understand the way landlords function in that location. Are they seeing more demand than supply or the other way around? Knowing these facts will help you in your negotiations.