Why Buy Properties During the festive time - A Comprehensive Guide
Why Buy Property During Diwali or New Year?
Diwali is considered to be an auspicious time to invest in real estate while New Year is a remarkable event awaited all year long. During this time, people investing in real estate strongly believe that this investment will be profitable. Real estate signifies prosperity and wealth, and buying property during Diwali is believed to bring good fortune.
Buying a Home Can be Cheap During this Diwali
Due to the impact of Covid-19 in 2020, the cost of flats and houses has been reduced significantly to incur more investments in the real estate sector. Government and reputed real estate developers have started offering lucrative schemes such as lower home loan rates, discounts of GST, offering ACs along with flats, etc.
This allows people to buy houses at a 20% lower rate than the circle rate (the minimum cost of a property set by the regional authority). As a result, this Diwali can prove to be a merry one for the real estate market as buying properties has never been this cheaper. Many realtors suggest that there could be a 15%-25% rise in the demand for housing properties in the major cities this festive season.
Buy, Rent, or Renovate Your Home this Season—A Comparison.
This is one of the most common concerns that we have as real estate investors. Most of the time, we feel like renting or renovating a property may be a good option, but in reality, buying a property will be more logical in the long run. Here, we've discussed all these three aspects in a detailed manner.
Buying or Renovating Your House- Which Is Better?
It is always a good idea to buy a house other than opting for a renovation. Renovating a house means giving your property a new look via refurbishing, redecorating or repainting it, but why invest so much on the same property when you can invest in a new one. Here are a few reasons why buying a house is better than renovating it:
If you're planning to renovate your house, the cost of the entire house renovation will be approximately 10 lakhs, and if you're planning to do interior renovations, then it will be more than that. Currently, interior cost per sq. feet is approximately 2000 INR to 3000 INR from a reputed interior designer. Now, you can simply calculate how much it will cost if you hire an interior designer and your flat is 1000 -1200 sq. ft.
There is a financial benefit when you buy a house other than renovating it and spending money on the same property. Buying a new property assures a rewarding return on your investment as its valuation will keep increasing in the real estate market. Real estate investments will offer 8-12% guaranteed price increment of your properties every year. On the other hand, renovating your house might make it look better, but you won't be able to gain any profit from it.
Rent A House or Buy A House?
It is always better to buy a house than to rent one because:
The financial benefits that come from buying a house are greater than renting one. For starters, if you want to move, you can always sell it for a profitable amount of money or rent it to generate a beneficial cash flow.
With a property of your own, you won't have to worry about increased rent or moving out all of a sudden. Buying a property gives a sense of stability, whereas renting one simply eats out your income with time.
You'll get 2L (up to) tax exemption under section 24 from 2018-19 on your income tax when you purchase a property and pay loan.
If you're a first-time buyer, you can avail "Pradhan Mantri Awas Yojana", where you'll get discounts from approx 1L to 3L according to your property's valuation and the loan amount you've taken.
Diwali: An Auspicious Time to Buy Property
Diwali is regarded as the best time to invest in real estate because of the following reasons:
Investing in properties requires a significant amount of money. And it is always good to get discounts when you are investing in real estate. The advent of Diwali brings along you’ll be able to get attractive discounts on the best properties.
Diwali is a time of appraisals, bonuses, and gifts. That’s why Diwali is the perfect time to invest in properties, as there won't be any financial constraints.
Many new properties launch during this auspicious time with lucrative discounts and offers, so if you're planning to buy a property, Diwali would be ideal.
Due to a sudden cut in the repo rate, the rate of home loans has declined to make it easier for buyers to purchase their dream houses.
The home buyers also get lower interest rates and GST benefits. With the decreased interest rate and reduced real estate prices, the COVID - 19 has proved to be a golden period for homeowners to invest in new properties.