Is Investing in Real Estate a Good Move This Coming Festive Season?
Now that the BER months have started, the Festive Season is now around the corner. With this comes the barrage of real-estate discounts and offers to attract customers into buying a house or real-estate property. But is it really a good time to invest in real estate during the festive season? Let’s hear what the experts have to say.
The Divided Views
Rahul Agarwal of Wealth Discovery says that if you’re planning on buying your first home this festive season to accomplish your dream of having a house, then he claims it is the perfect time to buy. According to him, home-buyers can take advantage of the discounted rates since most builders like to offload their stock during the festive months.
However, it’ll be a different story if you’re looking to buy real estate as an investment asset.
According to Agarwal, buying real estate as part of your investment, the asset simply doesn’t make sense. He claims that there is still a huge inventory build-up that the real-estate sector has to clear first before determining the right prices for the properties.
Moreover, you still need to study the trends and wait for a long time before your prices go up to get ROI. He said it was better for first-time home-buyers to buy real estate on ready to move-in houses compared to ongoing projects, which will be delivered at a later date, and the chances of cancellation are high.
A Slow Trend
Agarwal also says that while there’s some positive movement projected in the real-estate sector this year, the property’s prices are still not enough for the investors, especially in the metropolitan areas. According to him, the price trends of real-estate properties in metros and urban areas remain sluggish. In fact, even Delhi NCR, Pune, and Mumbai still charter in the negative territory.
Agarwal also adds that the enactment of RERA last may 2016, also known as the Real Estate Regulation and Development, as well as the government for last 2017 has dampened the real-estate industry. While the sector can still benefit from the said movements in the long-run, Agarwal reiterates that real-estate companies nowadays struggle to meet their short-term financial goals due to its negative impact.
The Rising Rates
Meanwhile, Parikh of Bajaj Capital says he’s also not positive about the real estate sector in the next coming years. According to him, because the mortgage rates are to increase, generally the customers wouldn’t invest in buying a house due to the rates. Aside from the limited housing availability, inflation also continues to rise, which makes it harder for customers to buy a house.
Meanwhile, the and RERA also brought a heavy blow to the developers who were leveraged and the tight real-estate market competition makes it hard for prices to increase. While the steady prices are good news to end users and buyers, it’s not for the investors, unless they are planning to hold on to their properties in the long-term until the industry copes up.
If not, the investor must have at least the ability to select projects from developers with a track record of timely delivery and low leverage to get their ROI.
Dhaval Ajmera of the Ajmera Group, however, says the festive season is the perfect time for home-buyers and end users to take advantage of the discounted home loan rates. According to him, these offers are fairly unique compared to the deals you can get the rest of the year.
According to him, the RERA and GST rates have also been adjusted to entice customers into buying a house during the festive season. It also boosts the consumer’s confidence in buying their own homes.
More in Loans & Mortgages
These Surprising Workplace Perks Can Save You a Lot of Money in 2019
Retirement funds, health insurance and yearly bonuses aren’t the only benefits of working a nine-to-five job. If you need a little...February 20, 2019
The Simple Way To Save Money and Live Debt-free
In actual fact, saving the amount of money you spend on food isn’t so difficult if your area is one with...February 20, 2019
Home Insurance Mistakes That Can Seriously Cost You
One of the biggest monthly expenses that comes with buying a house is homeowners insurance which keeps us under the protective...February 20, 2019
What Next After You Buy Your Life Insurance Policy?
A lot of factors go into the determination of the life insurance policy which is perfectly suitable for your needs. In...February 20, 2019
Why Mortgage Application Rates Will Continue To Go Down
It would seem that the real estate market will continue to struggle. That is because I’d the mortgage applications for new...February 20, 2019
New Study Reveals Films With Female Leads Make More Money
It has been such a sensitive topic nowadays to talk about equality for both gender in all aspects in the society....February 20, 2019
Tesla’s Shares Continue to Stumble as Executives Quit
As if Tesla’s CEO Elon Musk’s admission in an explosive interview in NYT about him taking pills to sleep. This, after...February 20, 2019
Important Things You Must Know Before Getting a Pet Insurance
Feeling down, blue, or just bored? Animals have always found a way to cheer us up. They are like friends who...February 20, 2019
Study Reveals That Debt Repayment Isn’t A Top Priority For Most Millennials
A study by Northwestern Mutual found that Millennials have debts totaling an average of $36,000 and they spend nearly 34% of...February 20, 2019