Perfect Time for First-Time Buyers to Invest in a House in India

Perfect Time for First-Time Buyers to Invest in a House in India

 If you’re looking to sell your house in India online, this is just the right time to do it as the interest from buyers has only been picking up. There is a huge demand for affordable housing in India, which has really been kicked off by the recent budget and reforms such as Goods and Services Tax (GST).

A number of measures were introduced by the government to encourage more buying and selling in the real estate sector. One such measure was to incentivize developers to build more budget friendly houses.

Affordable housing is the biggest trend in India’s real estate sector. This is the need of the hour in a country where a decent apartment in any of the top cities costs 40 times as much as an average person’s annual income.

A top executive with a real estate consultancy service who chose to remain anonymous said this in an interview with the magazine Business World:   "The industry expects dozens of announcements of projects falling in the affordable housing segment. These projects will also be governed under the new Real Estate laws and therefore will get completed in a time-bound fashion.”

He further explained why there this would encourage people to buy real estate in India fast: “It makes sense for any un-decided home buyer to wait for few more months and then invest in a brand-new home rather than negotiate for the best deal in ready-to-move in properties (several of which have been ready and unsused for several months, even years)."  

The government has also made it easier for salaries employees to withdraw money from their Employees' Provident Fund (EPF), which is similar to the 401 (k) plans offered in the United States. This money can be used for investing in a property for sale in India.

Bandaru Dattatreya, the labour minister said, "The Government has taken a decision for modification in the Employees' Provident Funds (EPF) Scheme, 1952, to add a new paragraph 68 BD.” He added, "Monthly instalments for repayments of any outstanding payments or interest may also be paid from the amount standing to the credit of the member, to the Government/housing agency/primary lending agency or banks concerned."  

The government has also offered a number of tax sops to encourage people to buy homes in the country. These incentives are expected to help reduce the cost of borrowing substantially. A member of a top non banking financial institution said that he would advice buyers to wait a bit for the best deals: "Again, many of such projects will come up in next few months, to say the least. Lower project cost for developers will mean lower cost of housing units. It makes sense to wait."  

The Real Estate (Regulation and Development) Act, 2016 (RERA) has also kicked in, which provides a single-window clearance to all home sales. Generally, things are moving in the right direction in India. Home prices are more affordable and there are more people searching for properties. Experts say that this is as good a time as any to be buying or selling property in India.

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