Published on Friday,
The Indian government has tried to take measures like the amended arbitration act for contractors and many more to revive the ailing real estate sector in the country over the past few years. Some of these measures were working but with the recent demonetisation move, what little progress had been made has also suffered a setback. The demonetisation drive hit thereal estate market the most because this sector heavily depends on cash transactions.
But for the homebuyer, things might actually be working out for the better. Most homebuyers can take advantage of the falling property prices and interest rates. Demonetisation has also impacted the number of cash transactions that take place in the sector, benefiting buyers who are dependant on cheque transactions and bank transactions.
The move has restored faith in the real estate market because demonetisation ensures cash free transactions and homebuyers need not fear the excessive rates usually demanded by real estate brokers. The transparency established will only attract more homebuyers to the market. By putting a limit on cash transactions, the government has also ensured that legal checks on developers and agents can be performed on a regular basis. The result has been increased confidence for the buyer in the whole process, which will naturally boost sales of apartments and villas.
And with banks having more liquidity, home loans will be easier to avail and homebuyers can take advantage of this situation too. Not only that, since home loans will be easier to come by, this also means EMIs can be expected to be lowered and made more easier than ever. The homebuyer will receive income tax benefits due to the increased number of people who will move their money to formal banking systems. This ensures long term benefits for the tax payers as well.
“The greater impact of this move will be the wind given to the aspirations of thousands of homebuyers who have a fierce desire to buy their first home and it will also reinstall utmost faith in real estate sector as an asset class. More money will be brought into the banking system while excess liquidity in the market will be normalised. Demonetisation, coupled with the implementation of RERA, will make the buying process for consumers more transparent. With this move, the government has facilitated consumers' realty desires and there has never been a better time to buy your dream home.” says Mr. BrotinBannerjee, MD and CEO, Tata Housing Development Company Ltd.
With special interest rates and schemes being announced for the home-buyers by the government, the real estate sector, which has always been a buyer’s market, will only become more so. So, if you are a homebuyer and you have been waiting to buy a property in Bangalore, now is the right time. Make use of the government’s special schemes and choose from one of the many reputed
real estate developers in Bangalore.
Do your research and talk to your bank to understand how much loan you will be eligible for and depending on that, choose between investing in a luxury apartment or villa projects in Bangalore. Read our other blogs to understand the best locations and other details you will need to know before deciding to invest in property in Bangalore.
Make the most of the opportunities now!