Do you have fund corpus and are unsure where to invest for good returns? People in India primarily Invest in real estate, stock markets, buy gold and go for fixed deposits. Among these, Real Estate Investment in India has traditionally been the preferred investment choice for most of the people. The booming real estate sector, growing economy and increasing purchasing benefits have contributed to the rise in demand for more investment options in this sector. Several Government policies and schemes have also made this sector more profitable, not only for homebuyer but also for those looking to make an investment in residential projects. Be it plots, flats or a land for sale, investors are pitting high bets in residential sector to get the promising returns.
The Indian housing sale has also been increased in 2017 as compared to that of in 2016. There are many government initiatives that have made people more interested to Invest in Real Estate in residential sector as compared to commercial sector. Some of these are:
RERA Act: The Real Estate (Regulation and Development) Act has been enforced in May 2017 in India. That’s why people are making investment in this sector. According to this law, buyers can file a complaint about the builder, know the status of their project and can easily compare the builders on the state regulatory authority website. This way, buyers are getting empowered and secured.
GST (Goods and Services Tax): Another reason that has made investments in real estate more lucrative is GST that has been implemented in July 2017 in India. This tax has brought transparency in taxation system and even it has lowered the tax rates on the residential projects in India.
Pradhan Mantri Awas Yojna: This is an initiative by our honorable Prime Minister, Narendra Modi to provide the affordable housing facilities in India. According to this yojna, housing will be provided to all by the end of 2022. As per this scheme, the interest rates have been reduced and subsidies are also offered on the purchase of residential properties, which is attracting people towards real estate investing.
Demonetization: The revolutionary demonetization move by the government has resulted in more transparent investment in residential real estate in India. The prices of real estate projects have decreased due to demonetization, which would bring higher returns in future.
As compared to other assets, home loans are also cheaper in India. A home loan is available at an interest rate of 8.5% -11% as compared to the personal loan offered at 15% on an average. That means home loans are comparably cheaper and may suit everyone’s budget. Time would change, but the benefits associated with real estate investment are only going to increase.