Adopting the changes- The Indian Real Estate Industry
Posted: Jun 20, 2019
The growth of the real estate industry is ensured in terms of tax rates and regulations by the government. This may look like most of us could take benefit from but in the long run, it may not be adequate. Besides taxation and policies, innovations in other important sectors could help maintain a stable expansion across the industry.
Research and development is a key aspect of any given industry. Speaking of which, the Indian Real Estate Industry is slowly but gradually adopting the technology, however, R&D still remains to be a challenge. The problems need to be addressed in the areas of infrastructure, affordable housing, sustainable development, and others.
After the research, implementing the above mentioned is also a challenging task. The dynamics of the market for the residential segment tend to change often. This leads to the rising and falling trends of the market. If we observe the population closely, we can point that it consists of buyers who are common working people and are cash trapped.
In general terms, buyers are mostly working day and night enough to fulfill their basic needs suppressing their dream of buying a home. Or saving till the age of 40 for buying the home they dreamt about all these years. In case the funds don’t permit then people turn to find cheaper options or live in rented homes. But in order to make the industry more stable and fulfill the dreams of the buyers, the government is trying to make amendments to their housing plans and initiatives.
Your first step in the home-buying process is to determine your budget, just as you'd likely do for any other major financial decision.
But where to start in the first place? The general rule is to look for a home that costs about 2 or 3 times your annual income. It ensures that you don’t spend too much over your expense limit and that you don’t take a large loan commitment than you can afford. A simple rule is that you should take a loan on which you can pay your EMIs comfortably along with your other living expenses. In case you are stuck somewhere feel free to get help from a financial professional who can help to get you through an appropriate breakdown, based on your individual situation.
Now that your budget is defined you need to check your cash reserves. You will need to save at least 20% of your property price as the down payment. This is the major hurdle in front of the first time home buyer. Other than this you might also want to check the other expenses for decorations, improvements, or any maintenance costs after you buy a home. Sometimes there are urgencies that can occur anytime and need to be fixed right away.
With such reduction in tax rates and other regulations by the government as well as organizations like HomeCapital with their down payment assistance program, the buyers can see a ray of hope to fulfill their dream of buying a home. It is now made possible for the buyers to be a proud homeowner in their early stages of life rather than waiting for years to accumulate savings.
Initiatives and provisions are a great way to enable buyers to invest in residential properties. As such it helps the wheel of the market roll easily satisfying the needs of both the buyers and the developers giving way to a better economy for the country.