Realty Sector Looking Back At 2014

Buy sell Property & Real Estate Investment Guide

Buying Property Tips#1: Choose the Right Location
Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.
Buying Property Tips#2: Study the Local Market Dynamics
It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.

2014 was unforgettable as it turned out to be a year of wait and watch. The year raised the inventories in many cities which belied the hopes of developers and caused delay in various projects that dashed the expectations of homebuyers. Due to the cascading effect of meltdown of economy, realty sector has been severely hit. Despite the fall in sale of properties, rental properties have also witnessed the slowdown. It was difficult to find out the tenants even in the MNC hub in the Millennium City Gurgaon. Hence you can judge the state the real estate was in.

The scenario was expected to change as the Modi government sworn in. The policies were amended but it will take time to bear the fruits. First half of 2014 has been considered as the roller coaster ride for real estate market while second half has been seen as the transition period. However with the impact of amended policies and initiatives of government, New Year started on a positive note.

Buying Property Tips#3: Choose the Right Property
Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.
Buying Property Tips#4: Do the Math Properly
Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.
Buying Property Tips#5: Consider Additional Expenses
When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.

Spotting the need of rapid urbanization, funds of Rupees 51,000 Crore were assigned to urban infrastructure by Indian government in addition to funds of Rupees 7,060 Crore for for creation of smart cities. Presently there is dearth of approximately 19 Million dwelling units and 90% of it has been recognized as the low cost and in affordable segment. 'Housing for All by 2022' is marked as diagnose for affordable segment. Mr. M. Venkaiah Naidu- the Urban Development Minister iterated that realty sector has to develop affordable housing inclusive of rental housing devoted to Economic Weaker Section and Lower Income Group segments.

Urban Development Minister is in talks with Finance Minister to provide infrastructure in order to chase the dream of affordable housing. FDI boost and incentives for Real Estate Investment Trusts are other financial add on to accomplish the mission. Indian Realty sector has miles to go and some major challenges to face. One of the major challenges to accomplish the affordable housing mission is to get the funds of Rupees 1, 32, 000, 00 Crore over the subsequent eight years. The shortage that has been observed as 19 Million condominiums will shoot up to 30 Million by 2022. New government has built the confidence in foreign investors. With the allowance of 100% FDI in realty sector and easy exits, the friendly policy is tagged as 'catch the bull by horn' policy that set a motivated memo of 'Housing for All by 2022'.

Modi regime welcomed the suggestions from private developers soliciting the affordable housing mission. Few developers marched ahead to envision the 'Ache Din' by providing the ideas for low cost homes and that too without imparting harm to prestige that they developed in the years.

Buying Property Tips#6: Inspect the Property
To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.
Buying Property Tips#7: Pick the Right Financing Option
While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.
Buying Property Tips#8: Invest through Equity
One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.
Updated: April 3, 2017 — 8:09 am
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