WHY CURRENT POOR REAL ESTATE MARKET IS A GOOD OPPORTUNITY FOR YOU??

If you see the current scenario, there will be many Wealth Management companies or experienced people suggesting you not to buy a property in this market condition as there will be no resale value in the next couple of years. However, having more than 10 years of experience in real estate sector, I will strongly suggest you these 2-3 years will are actually golden period for investing in real estate. 

Allow me to explain! We all know that the real estate market & global economy is not performing well. The reasons were back-to-back blows received by a major fall in stock exchange across the globe in the year 2000, a fall of real estate stock in 2008 by more than 50% and US Sub-Prime Mortgage loan crisis & Housing bubble, resulting into huge disparity between demand & supply of property. Most importantly, the collapse of Lehman Brothers ($600 Billion) has extinguished the hope for real estate market. Now, talking about the current scenario of Real estate market, which probably from everyone’s views, doesn’t seem to be optimistic.

But I will use the term “opportunistic” for long term investment.

In many Tier-1 cities, the property prices have been slashed by more than 15 to 30% of their original prices. While in Tier-2 and 3 cities, the property prices have decreased by 20% in new constructions.

From the above statistics and current market conditions, I must say even though there is technically a correction in property prices. I see more ongoing property projects in Delhi NCR & Gurgaon. Obviously, Mumbai & Bangalore retain the top spot for property demand due to them being major business hubs. While property data surrounding Ahmedabad seems to be at much lower level.

The RBI intervention in increasing the base loan rate & decreasing the interest rate has severely impacted the property market . Unlocking the power & benefits of real estate I would like to highlight its benefits:

1. Rent your Property:

If your property is vacant then try to put it up for rent as the demand for rentable properties is ever on the rise. Due to slashing of salaries & a weaker job market, more people are looking for cheaper sources of accommodation like renting or sharing the property.

2. Hold with Selling:

If you think selling your property in 2016-17 will do you any good then think again. There is absolutely weaker demand for new property in the market. Hence, selling will be a very tough task in the market as 40% of business houses are not performing due to recession is some major industries.

3. Nice time to buy:

Yes absolutely, this is probably the best time to buy your property in two years. In order to gain a long term profit, I must say you should opt out for the commercial projects & residential spaces in smaller cities.

4. Tax Benefit:

Under the new BJP government, there are many new initiatives taking place in the real estate sector which have received Tax benefits from Sec 80C for income from property & has increased a TDS exemption limit from Rs. 1,00,000/- to Rs. 1,50,000/- for Salaried Person & for self-employed it has been increased from Rs. 1,50,000/- to Rs. 2,00,000/-

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