Month: November 2018

The demand side of any market is dominated by buyers. Their importance is prodigious but being an informed buyer is of maximum importance.

Better decision making

Information gives knowledge and knowledge gives power. An informed buyer is knowledgeable and powerful. Gone are the days where the sellers played the role of an educator and the buyers customized themselves to the product. Today’s world is perfectly competitive, perfectly informative and knowledge dissemination is universal. This gives leverage to the buyers to harness and predict the market forces correctly and make better decisions.

Role of a credible agent

In an organized real estate market, the buyers today are perfectly informed but since their decisions involve major financial undertaking and psychological attributes, they often tend to take sub-optimal decisions. Here comes the role of a credible agent. With the help of diverse and seasoned market knowledge that a credible agent brings on board, buyers can get completely assured of where they are parking their money into. An informed buyer gets more sense of assurance by consulting a credible agent. With the introduction of RERA (Real Estate Regulatory Authority), the importance of a credible real estate agent has become much more prominent. The three areas where an informed buyer gets leverage by consulting a credible real estate agent are as follows:

· Detailed information

· Trustworthiness and reputation

· End-to-end solution

Collaborated efforts: All that it takes!

An informed decision making is an outcome of collaborated market efforts. A buyer becomes informed when he leverages all the necessary market forces and then takes judicious decisions based on them. A collaborated effort with the agents and other stakeholders like the local government, regulatory bodies is very much necessary that makes a buyer completely informed and thereby helps in taking wise decisions.

_Image Courtesy: brisbanebuyersagent.com.au_

Yes it is true! Resale properties enjoy first hand leverage over under-construction properties in the current scenario.

Lesser Cost
Resale properties actually put lesser burden on pockets than under-construction properties. The major demand for resale properties comes from the end-users. On the supply side, with significant volume of inventories, investors do not mind offering the buyers at marginally discounted rates which gives a win-win situation for both buyers and sellers. In the current scenario, quality properties from reputed developers are available for possession at rates previously available to buyers willing to wait for two years or more for possession. Furthermore, the buyers also receive GST waiver for resale properties as compared to under-construction properties.

Rental benefit
People opting for under construction properties will have to choose an alternative rental property to live until they get the possession for the property. In case of resale properties, there comes no question of delay in possession and people actually save the rental that they have to bear in case of under-construction properties.

What you see is what you get
People opting for resale properties buy what they see. Fully functional amenities and ready specifications give the buyers the full conviction of where they are putting their hard-earned money in. Skepticism often arises regarding the amenities in the minds of the buyers when they are going for under-construction properties.

Precisely, resale properties provide a firsthand leverage over under-construction properties and the trend of consumption is more towards resale properties in the current scenario. Furthermore, with renowned real estate consultants your search for your dream property becomes easier!

Affordability to buy houses has increased over the past three years (especially in urban areas), even as property prices have remained flat, incomes have risen and mortgage rates have fallen by around 250 bps from five-year peak leading to 15 per cent reduction in EMI payments.

One of the reasons why affordable housing never took off was the issue of the applicant not having enough money to give the margin for taking a housing loan. The government has done three things to make it affordable.

First, it is giving a subsidy of the 6.5 per cent at the lowest rung of the ladder. Secondly it is crediting the entire subsidy of a 20-year loan to the loan account of an applicant, which reduces EMI, which further makes it more affordable to the applicant.

Thirdly, they have allowed withdrawals from the EPFO to the extent of 90 per cent of the amount for housing in case there is a group of eight other people who are doing so for a house in the same society.

The demand for housing in the affordable segment has increased in cities due to a large migrant population. The main reasons for rise in shortage in affordable housing on the supply side is lack of availability of urban land, rising construction costs and regulatory issues while lack of access to home finance for low-income groups are constraints on the demand side.

Affordable housing in India remains one of the most straightforward growth stories in India. Even if the private sector capex revival takes some more time, there will be an acceleration in economic activity in India in the coming 18 months driven by housing.