More Preference towards Ready to Move in Homes after GST and RERA Implementation
Aug 14, 2017 Real Estate News
Since the two main Acts in the real estate has come into full force, Goods and Service Tax (GST and RERA (Real Estate Regulation and Development Act, 2016), homebuyers are now showing more and more interest in the ready to move in properties.
It’s not a secret that investing in under construction projects is like taking a huge risk. Buyers often hesitate in investing in the newly launched and under construction projects. But since these have come into full force, there is the substantial rise in the demand of the ready to move in projects.
The real estate industry of the country is facing significant changes. The RERA Act prohibits the developer to advertise the projects that are under construction. Though the developers are free to attract buyers with advertising them if the project has Occupation Certificate (OC) with it. This has increased the interest of the buyers to invest in the properties that are complete and ready to occupy.
GST has played an important role as well. The total tax levied on the property will not be 12 percent including the land. This should be enough for the builder to claim input credit, making the projects with OC more economical for the buyers. The reduced tax burden on the buyer is a relief and very welcoming.
In general, the ready to move in projects are expensive than the one that is under construction. But there are more risks involved in the under construction properties. Financing and maintaining your monthly budget becomes difficult too when you are paying the monthly rent and EMI to the bank for the project. To avoid such situation, the buyers prefer to buy the property that has ready OC certificate, saving them both time and money. Paying little extra only to move in the property of your choice and avoid all the hassle is preferred than under construction properties.
Rental income and the decrease in the number of developers, who are dubious and fool the buyers, have also resulted in the sudden surge of the ready to move in properties.
Both RERA and GST are expected to change the game of the real estate in the country for good. To know the exact implication of the laws will take some time. Only after six months or a year, it could be said how these acts have affected the industry. Nonetheless, only is good is expected to come out of it.
It’s not a secret that investing in under construction projects is like taking a huge risk. Buyers often hesitate in investing in the newly launched and under construction projects. But since these have come into full force, there is the substantial rise in the demand of the ready to move in projects.
The real estate industry of the country is facing significant changes. The RERA Act prohibits the developer to advertise the projects that are under construction. Though the developers are free to attract buyers with advertising them if the project has Occupation Certificate (OC) with it. This has increased the interest of the buyers to invest in the properties that are complete and ready to occupy.
GST has played an important role as well. The total tax levied on the property will not be 12 percent including the land. This should be enough for the builder to claim input credit, making the projects with OC more economical for the buyers. The reduced tax burden on the buyer is a relief and very welcoming.
In general, the ready to move in projects are expensive than the one that is under construction. But there are more risks involved in the under construction properties. Financing and maintaining your monthly budget becomes difficult too when you are paying the monthly rent and EMI to the bank for the project. To avoid such situation, the buyers prefer to buy the property that has ready OC certificate, saving them both time and money. Paying little extra only to move in the property of your choice and avoid all the hassle is preferred than under construction properties.
Rental income and the decrease in the number of developers, who are dubious and fool the buyers, have also resulted in the sudden surge of the ready to move in properties.
Both RERA and GST are expected to change the game of the real estate in the country for good. To know the exact implication of the laws will take some time. Only after six months or a year, it could be said how these acts have affected the industry. Nonetheless, only is good is expected to come out of it.
Looking for property portal?
Related Articles
-
-
-
All eyes on REITs this year
Jun 02, 2017 -
Maintenance Charges under GST Regime
Mar 07, 2018
