Festive season, which spans between mid-October to mid-November in India, is considered to be an auspicious time to invest in real estate.
Festive season, which spans between mid-October to mid-November in India, is considered to be an auspicious time to invest in real estate. Historically, this is also the time when developers slash their rates and lenders come up with special offers and discounts on processing fees, etc., to make investing in property more lucrative.
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This year, the interest rates have fallen even more, and builders are also offering heavy discounts to make up for the stagnation during the earlier phase of the COVID-19 pandemic. Taken together, this could mean a bigger home at the same cost, said Adhil Shetty, CEO, BankBazaar.com in an exclusive interaction with CNBC-TV18.
“If individuals can afford it, this could be a great time to invest in property,” he said.
Talking precisely, real-estate players too are well aware of the market phenomena and consumers sentiments during festive season. Hence, they organize their offers and sales accordingly.
Elaborating further, Honeyy Katiyal, Founder of Investors Clinic said that different developers and real estate consultants offer a slew of deals during festive season, including brokerage reductions, cash savings, registration and stamp duty advantages, vacation vouchers, free membership, complimentary gifts to name a few.
"Even cash discounts, tax exemptions and heavy discounts on stamp duties are provided," he said.
Hence, this becomes an apt time to buy properties.
Besides, the second festive season after the COVID-19 pandemic, Katiyal said, is offering a bigger opportunity for consumers to invest, as more measures have been taken this year to boost sales and provide lucrative offers to consumers.
"Majority of banks have reduced home loans this year, which is an added advantage along with the offers provided by the developers. Reserve Bank of India (RBI) has also made changes in the maximum loan amount a borrower may get," Katyal added.
According to the new laws and regulations for house loans in India, borrowers can get a loan for 90 percent of the property's actual value if the property is worth less than Rs 30 lakh. The maximum loan to value (LTV) ratio for loans more than Rs 30 lakh but less than Rs 75 lakh is 80 percent. If a person takes out a house loan to buy a home for Rs 75 lakh or more, the maximum LTV is 75 percent.
After the RBI cut the repo rate to below 4 percent, house loan rates in India have reached a 15-year low. Thus, all these timely policies are beneficial for investors now, Katyal told CNBC-TV18.
The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
(Edited by : Aditi Gautam)
First Published: Oct 26, 2021 5:31 PM IST