Best Investment in Real Estate – Residential PropertyRadhe Developer
Many real estate laws and regulations have come to the fore in the past one year, making Indian real estate a lot more transparent and lucrative market. Whether we talk about the Real Estate (Regulations and Development) Act or the Pradhan MantriAwasYojana, the government has taken various initiatives to make the residential property more favorable for the buyers. These government policies and rules have made real estate a more profitable sector, not just the homebuyers, but also for the people who are looking forward to investing in real estate. Be it the residential plots, apartments, flats, or lands, the investors are putting high bets in the residential sector of Indian real estate to get promising returns.
The Indian housing sale has also increased by 70% in the Q1 of 2017 with 23,000 units sold as compared to the Q4 of 2016 where only 14,000 of them were sold. Both the primary and secondary markets for residential property in Indian real estate have seen a positive shift in the first half of the year.
There are many government initiatives that have made people more interested in investing their hard earned money in the residential sector as compared to the commercial sector. Some of these are:
- Real Estate (Regulations and Development) Act: The Real Estate (Regulations and Development) Act aka RERA has been enforced in India on May 2017 and is one of the main reasons why people are showing more interest in investing their money in the residential real estate. Buyers are getting empowered and can now file a complaint, know the status of projects, and compare the builders easily on the state regulatory authority website through this act.
- Goods and Services Tax: Another reason that has made investi8ng in residential real estate more lucrative is the Goods and Services Tax that has been enforced in India on July 2017. GST would bring more transparency in the taxation system and has even lowered the tax rate on various types of residential projects. The benefit would this lowered and transparent taxation would be passed on to the homebuyers as well.
- Pradhan MantriAwasYojana: The Pradhan MantriAwasYojana is an initiative by the PM Narendra Modi-led government to provide affordable housing facilities and even provide housing to all by the end of 2022. As a part of this scheme, the interest rate has been reduced and subsidies have been offered on the purchase of residential real estate which is attracting people towards this sector.
- Demonetization: The revolutionary demonetization move by PM Narendra Modi that startled the public in November 2016 is also a major reason why more white and transparent investment in the residential real estate would be seen. As a long term effect of the demonetization move, the prices of real estate have seen a decrease and would bring higher returns in the future.
Moreover, the rental income that comes with residential property is an add-on bonus. You can pay the EMI on the property with the rental income that you are getting. All in all, investing in residential property is sure to get you higher returns because of the increasing demand in this sector.