Real estate has moved from being a luxury that only a few could afford, to being a viable investment option accessible to many. Today, buying an apartment is not just about having a roof above your head; it is also looked upon as a valuable source of income. With home finance easily available, here are 6 reasons why you should consider investing your money in real estate.
- RERA brings transparency
The Real Estate (Regulation and Development) Act was implemented in May 2016. It brings greater transparency to the real estate sector and aids you, the buyer, with your investments in the sector. For example, with RERA it is more difficult to be cheated with an incomplete project or delayed construction. It ensures that detailed ‘carpet-area’ dimensions be given to you by the builder and mandates that the builder incurs penalties if there is a delay in possession. Assured with such transparency, you can sign on the dotted lines of your house purchase deed with more confidence.
- High scope for property appreciation
While it may be wise to be cautious before investing in a city that is not showing many prospects in terms of job opportunities or housing demand, there are plenty of Tier-II cities in the country that have great potential to grow economically. Good growth opportunities mean that the value of your property will increase faster within a shorter span of time. Ahmedabad, Patna, and Guwahati are some of the Tier-II cities you can look at investing in right now to gain from higher valuation for your purchase.
- Affordable housing options
Today, real estate is not confined to buyers who have large pockets. There are plenty of housing options that meet other income categories as well. For example, per square feet rates in Sarjapur Road, Bangalore, range from Rs.2,464 to Rs.9,313. This means that investing affordably is all about being aware and grabbing the right opportunity. So, you can invest now to get the best value for your money, no matter what your budget is.
- Market showing promising signs
The real estate market showed promising signs of growth in both the residential as well as corporate sectors in the first half of 2018. As per a report published by the Times of India, the real estate sector had a 25% year-on-year increase in top Indian cities all through the first half of 2018. These positive facts mean that you stand to gain no matter whether you are investing in property or looking to reside in one yourself.
- Multiple tax benefits available
You are eligible to claim tax benefits on your home loan under Sections 24B, 80C and 80EE. Section 24B allows you to claim tax benefit of up to Rs.2 lakh on the interest you repay on your home loan. Similarly, Section 80C allows you to claim the principal repayment on your home loan up to a maximum of Rs.1.5 lakh annually. You can also include the stamp duty and registration charges for your home under this section. Finally, first-time homeowners can claim an additional deduction of up to Rs.50,000 basis interest repayment under Section 80EE. But before you decide to raise a claim, it is important to read the fine print and check the income tax eligibility criteria. This will ensure that you save the maximum tax every financial year.
- EMIs to become cheaper soon
As per RBI’s statements issued in December 2018, you do not have to shell out a large amount of money on MCLR-based interest rate home loans. From April 1st, 2019, banks have to abide by an external benchmark based on which they have to determine the interest rates on loans. The external benchmark guarantees more transparency in the lending process and gives you a chance to directly gain from the RBI rate cut benefits. So, to put it simply, the interest rates on your home loans will be governed directly by the market and hinge on your personal credit score. This puts you in the driver’s seat, assuring you more convenience and affordability.
When it comes to getting valuable information on the latest real estate projects like Sobha Dream Acres Panathur, or Godrej Eternity Bangalore and getting affordable funding for the same, you can bank on the services coming your way via home loans by Bajaj Finserv Homes & Loans. Here you will get a large loan amount of up to Rs.3.5 crore, a lengthy repayment tenor, and other benefits like zero foreclosure and prepayment fees. To expedite the process check your pre-approved home loan offer here and get access to a customised home financing deal.