A new home or a resale home which one to choose in present market scenario
01, Feb, 2018
A house is seen as the judicious, substantial and nearly safe investment instrument that gives imperative strength and security. The huge residential shortage in the nation, rising population and the expanding number of nuclear families implies that interest for new properties will surely keep on growing. Besides, with softening of the loan costs, the home searchers are relied upon to discover more reasons to make the purchase.
Solid end-client request over the key markets and additionally sound deals off-take across both, recently-launched and existing projects should actually strengthen the restore consumer and ecosystem confidence in the near future. Reducing the interest rates should furthermore demand housing real estate in the coming years. All the factors together with a present demand-supply gap augur well for the realty investment asset.
Advantages of opting for new property
Growth in India’s realty sector has typically been driven by the demographics as the fast-growing urbanization and population which results in ever-increasing demand for the new home especially in commercial and economic centers which have good job creating prospects. Nonetheless, when it comes to the demand for homes, properties may actually find great preference over the homes that are resale as per the experts. The reasons are-
Better resale value prospects
Great flexibility via home loan and finance tenure
Financing options for new and resale properties
If there is a new property, then, home buyers can opt for the tenure of 20-30 years on the home loan. If we take the instance of an old property, however, the housing finance company doesn’t offer the home loans on the properties that are over 50 years old, then, tenure will somewhat be limited to a maximum of 10 years. This will have some adverse effect on equated monthly installments which will grow due to the drop in the tenure.
Also, the buyers stand to gain, if these buy the homes in projects launched after 1st July 2017. Though a 4.5% service tax being swapped by 12% Goods and Services Tax, the gain is that numerous hidden as well as cascading the taxes will remove under the new regime. The developers will get various tax credits under Goods and Services Tax which have to pass on to the home buyers.
Property and availability rates
The resale properties have their own set of restrictions. Due to limited availability in the real estate market, the customers will often get the apartments according to their expectations and the Vastu compliance. This is a prime hurdle, as the customers generally buy their dream home with the long-term perspective.
Furthermore, the resale properties that are available in the market may have been bought at a time when home loan interest rates were over 10% and the property rates were on the upward trend. Thus, the property would have bought at an extensive level, in comparison to the present property rates. Now, interest rates have come down to 8 or 8.5% and realty market is much more transparent.
Rates are developers and realistic are willing to reach out directly to reach out to the customers. Hence, the home buyers may also be able to get better deals by discussing with the developer to purchase new homes in comparison to the resale property.
Posted by : Satish Singh