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.
For Homebuyers
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
-
Navigating the Mortgage Maze as Interest Rates Take a Historic Leap
The U.S. housing market is nothing short of a dynamic entity. It evolves, reacts, and sometimes, just like the current real-estate...
November 3, 2023 -
Celebrity Couples Where the Woman Has a Higher Net Worth
In a world where gender roles and financial dynamics constantly shift, it’s not unusual to find celebrity couples where the woman...
October 27, 2023 -
Why the Gender Pay Gap Could Be Worsening
Picture this: Two college students, Alex and Charlie. Both are bright, have the same interests, and are ready to embrace the...
October 19, 2023 -
JC Penney’s Remarkable $1 Billion Revival Plan
In a remarkable turnaround, JC Penney unveiled a bold $1 billion revival plan, breathing new life into a brand that faced...
October 12, 2023 -
Shattering the American Dream: Mortgage Rates, Inflation & Cost of Living
You know that feeling when you are dreaming of something you have wanted for so long, only to watch it vanish...
October 6, 2023 -
Navigating the Workplace Dynamics With Generation Z
With the entry of Generation Z (born from 1997 onwards) into the workforce, a fresh breeze has swept through office spaces....
September 22, 2023 -
Why Businesses No Longer Offer Perks and Freebies
Have you noticed a shift in how companies are doling out customer perks and rewards? It’s not just your imagination—there’s a...
September 15, 2023 -
Paying Off Your Debt Through a Home Equity Loan | Is It a Good Idea?
Debt can be overwhelming, and finding ways to pay it off can be difficult. One solution that many homeowners consider is...
September 7, 2023 -
The Benefits of Doodling for Creativity and Concentration
Doodling, once seen as a mindless distraction or a sign of boredom, has now emerged as a powerful tool for enhancing...
September 2, 2023
You must be logged in to post a comment Login