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
Can You Save Money by Increasing Your Insurance Deductible?
Increasing your insurance deductible will save you some money on insurance premiums but, the money you save may not be substantial...March 1, 2019
Want to Save More Money While Living a Languish Life? Move into these Affordable Countries!
Most Americans tend to quit their corporate job in their home country, despite the big salaries they have. The reason? It’s...March 1, 2019
Remortgaging May Be The Best or Worst Decision You’ll Make
With the continuous rise and fall of the mortgage rates in the market today, more and more people are taking the...March 1, 2019
Things You Didn’t Know Your Car Insurance Could Cover
When you hear about surprising things that can come from car insurance, it’s usually something like rate increases and mishandled claims....March 1, 2019
Financial Setbacks Rock Social Media Giants Twitter, Facebook and Snap Last Week, but Can They Make a Turnaround?
Stocks in the social media fraternity received a major pounding last week after executives from social media giants like Twitter and...March 1, 2019
With the Rise of Robo-Advisors, What is the Financial Advisory Industry’s Future?
In this modern world where technologies continue to evolve, new state-of-the-art robot-advisors like Betterment and WealthManagement have emerged that threatened to...March 1, 2019
Struggling to Find Your Ideal Career Path? These Tips Will Help You Sort It Out
One of the most common trends we see with millennials today is that they all seemed to be quitting their jobs...March 1, 2019
Fans Wait with Bated Breath as Apple Unveils 3 New iPhones
iPhone enthusiasts are now abuzz on social media after being brought to life with last week’s grand announcement that the company...March 1, 2019
How to Get The Best Price On Auto Insurance After Making Online Comparisons?
It is a fact that using online methods can get you good auto insurance prices. When you begin your search online...March 1, 2019