{"id":185568,"date":"2023-10-20T05:26:01","date_gmt":"2023-10-20T05:26:01","guid":{"rendered":"https:\/\/indiansapidnews.com\/?p=185568"},"modified":"2023-10-20T05:26:01","modified_gmt":"2023-10-20T05:26:01","slug":"want-to-buy-a-new-home-read-this","status":"publish","type":"post","link":"https:\/\/indiansapidnews.com\/celebrity\/want-to-buy-a-new-home-read-this\/","title":{"rendered":"Want To Buy A New Home? Read This"},"content":{"rendered":"

Look at the sanctioned plan to know the exact carpet area you will get and pay a law firm to conduct a thorough title check.<\/strong><\/p>\n

Housing sale is displaying strong momentum. Data from Anarock Research shows that an unprecedented 120,000 units were sold across the country’s top seven cities in the third quarter of 2023, a year-on-year increase of 36 per cent.<\/p>\n

Prices are also rising in double digits: they were up 11.4 per cent on average over this period.<\/p>\n

Buoyant sentiment<\/strong><\/p>\n

The COVID-19 pandemic sparked the desire among people to upgrade their homes both in terms of size and facilities.<\/p>\n

Says Vikas Wadhawan, group chief financial officer, REA India & business head, Proptiger.com: “Many wanted a home with an extra room.<\/p>\n

“People also realised the importance of owning a home within a society where most facilities would be available within the campus.”<\/p>\n

Anuj Puri, chairman, Anarock Group attributes the sales momentum to the RBI maintaining the repo rate constant.<\/p>\n

“This has stabilised home loan interest rates and kept buying sentiment high,” he says.<\/p>\n

Currently, the supply coming into the market is largely from branded developers.<\/p>\n

“This aligns well with the shift in buyer preference towards large, listed developers,” says Puri.<\/p>\n

The setting up of the Real Estate Regulatory Authority (Rera) has boosted customer confidence.<\/p>\n

Says Anand Moorthy, co-founder and chief business officer, asset management services and data intelligence, Square Yards: “Projects are now reaching completion without significant delays.”<\/p>\n

Wadhawan asserts that government investment in infrastructure over the past five to seven years has provided a fillip to housing.<\/p>\n

While rising prices generally dampen demand, the opposite is happening in the real estate market.<\/p>\n

“Increasing prices accelerate purchase decisions as prospective customers are struck by FOMO (fear of missing out<\/em>). They feel if they delay the purchase, they may end up having to pay a higher price,” says Wadhawan.<\/p>\n

Higher interest rates have so far failed to dampen demand.<\/p>\n

“Customers feel that any gain they derive from waiting for rates to soften would get nullified by the increase in price,” says Wadhawan.<\/p>\n

The relative strength of the Indian economy has also kept the demand momentum intact.<\/p>\n

A few risks<\/strong><\/p>\n

Inflation and interest rates could play spoilsport.<\/p>\n

“Persistent inflation could force buyers into a wait-and-watch mode. Rate hikes in future could also act as a short-term dampener,” says Puri.<\/p>\n

If next year’s general election ushers in an unstable government, that would be another setback.<\/p>\n

Investors returning to the market<\/strong><\/p>\n

Investors, who had quit the market between 2013 and 2020, are now re-entering it.<\/p>\n

According to Anarock Research data, of over 115,000 homes sold in the second quarter of 2023 across the top seven cities, over 43 per cent were in newly launched projects.<\/p>\n

“The growing acceptance of newly launched units shows investors are back,” says Puri.<\/p>\n

Get title verified<\/strong><\/p>\n

End users should ensure that an under-construction property is registered with Rera.<\/p>\n

“Make sure the phase you are investing in is registered,” says Wadhawan.<\/p>\n

Read the sale agreement before signing it.<\/p>\n

“It must be in the Rera-prescribed format and must not be skewed in the developer’s favour,” says Moorthy.<\/p>\n

Look at the sanctioned plan to know the exact carpet area you will get and pay a law firm to conduct a thorough title check.<\/p>\n

Buyers should also stress test their own affordability.<\/p>\n

“Your equated monthly instalment (EMI<\/em>) based on peak interest rate scenario should not exceed 30 per cent of your take-home salary,” says Abhishek Kumar, Sebi registered investment advisor and founder, SahajMoney.<\/p>\n

Go for limited-sized projects<\/strong><\/p>\n

Investors should stick to quality developers and locations.<\/p>\n

“An investment in a property by a branded developer in a quality location (with well-developed physical and social infrastructure) can prove fruitful,” says Puri.<\/p>\n

Moorthy warns against investing in areas with high supply. He also suggests avoiding very large projects.<\/p>\n

“The supply from the developer continues for a long time, making it difficult for investors to earned good returns,” he says.<\/p>\n

Wadhawan suggests finding whether the developer has a lock-in clause or will demand a transfer charge (0.5 to 1.5 per cent) for selling before the project is completed.<\/p>\n

If you are depending on an infrastructure development to propel prices up, make sure you have concrete information about the completion timing.<\/p>\n

<\/p>\n

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities\/schemes or any other financial products\/investment products mentioned in this article to influence the opinion or behaviour of the investors\/recipients.<\/em><\/strong><\/p>\n

Any use of the information\/any investment and investment related decisions of the investors\/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.<\/em><\/strong><\/p>\n