Want to Invest in Luxury Property? Is It A Good Time?
May 17, 2017 Home Trading Steps
Buying a property is everyone’s dream and if given a chance to invest in luxury property, no one wants to step back. Investing in luxury segment has its own pros and cons. Though they are expensive than the affordable segment and buyers usually hesitate to invest in them. The pricing trends reveal that the luxury segment has become more affordable recently and can suit buyers pocket without burning a huge hole in it.
After demonetization by the government, it is expected that the pricing of the luxury segment will see some correction and will become more affordable. Most of the transaction in luxury estate happens in cash rather than a non-cash transaction. This is where black money gets involved. But with demonetization it will be difficult for people to invest with cash. Non-cash and bank transactions will be involved more. This becomes a good time for the buyers looking to invest in property in luxury segment. However, buyers may see a huge cost involving registration, stamp duty etc.
As most of the transaction involved black money before, it is expected that the taxes involved with the property will be higher than usual.
Finding the right luxury property to invest in
Tier II and Tier III cities are expected to see a huge rise in interest in the luxury segment. Cities like Lucknow, Vizag, Jaipur are not only emerging as big cities but also a promising employment hub. They have well connected with the country and the real estate prices are affordable. Rentals are also expected to see a boom in these cities.
Investing in a luxury segment is an expensive process and buyers should look for certain points before investing in them.
1. Be clear about your budget. If you are taking a loan from any bank or housing finance institutes make sure you will be able to repay and maintain the property.
2. Put your needs first over wants.
3. Not just the property but also look and research on the neighbourhood.
4. Look for the property which promises a good resale value. Don’t be too hung up on the interior, not everyone looks for it.
5. Buying a luxury property is a huge investment and make sure it is from a reputed developer.
6. Make sure that the developer provides all the amenities that were promised at the time of booking.
7. Keep in mind that not only the property but also the location and neighbourhood play an important role in the price of the property.
After demonetization by the government, it is expected that the pricing of the luxury segment will see some correction and will become more affordable. Most of the transaction in luxury estate happens in cash rather than a non-cash transaction. This is where black money gets involved. But with demonetization it will be difficult for people to invest with cash. Non-cash and bank transactions will be involved more. This becomes a good time for the buyers looking to invest in property in luxury segment. However, buyers may see a huge cost involving registration, stamp duty etc.
As most of the transaction involved black money before, it is expected that the taxes involved with the property will be higher than usual.
Finding the right luxury property to invest in
Tier II and Tier III cities are expected to see a huge rise in interest in the luxury segment. Cities like Lucknow, Vizag, Jaipur are not only emerging as big cities but also a promising employment hub. They have well connected with the country and the real estate prices are affordable. Rentals are also expected to see a boom in these cities.
Investing in a luxury segment is an expensive process and buyers should look for certain points before investing in them.
1. Be clear about your budget. If you are taking a loan from any bank or housing finance institutes make sure you will be able to repay and maintain the property.
2. Put your needs first over wants.
3. Not just the property but also look and research on the neighbourhood.
4. Look for the property which promises a good resale value. Don’t be too hung up on the interior, not everyone looks for it.
5. Buying a luxury property is a huge investment and make sure it is from a reputed developer.
6. Make sure that the developer provides all the amenities that were promised at the time of booking.
7. Keep in mind that not only the property but also the location and neighbourhood play an important role in the price of the property.
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