There is a lot of hue and cry in the market about the slowdown in the real estate industry. A lot of research papers and studies by some renowned IPC’s are giving some crazy number with regards to the unsold inventory available in the market. We also keep hearing about various protests being held by some disenchanted buyers against the builders and developers who have delayed their projects for long and failed to meet commitments with respect to timelines, amenities and quality etc.
In such an environment, it is obvious for a buyer to get demotivated and they are forced to rethink about their buying plans. Buying real estate is the most crucial financial decision of anyone’s life and it is obvious to weigh all pros and cons before taking the plunge. A lot of people postpone their buying decision waiting for that ‘Right time’.
I just wanted to address this puzzled situation by adding my two bit. There is very famous saying, ‘The Best time to buy Real Estate is today’. I don’t recommend you to follow this saying always, but as of today, you definitely should. Yes, I personally think there is no better time to buy Real estate than today. And I have my reasoning to back this statement and some of the reasons are as follows:
1. Prices are on an all-time low:
This situation shouldn’t bother you at all if you are a long term investor and it should bring a big broad smile on your face if you wish to buy the property for self-use. As Indians, we tend to stay in a single property for around 15-20 odd years or even more. So it shouldn’t really concern you that your property wont appreciate for the next couple of years. In fact the only point, which you should be happy about and should look at is that are you getting it cheap from what it was or what it should have been if the market wasn’t down. Since you aren’t looking to sell the property in the next few years, the cheaper you get today is better for you. In long run, real estate prices never go down.
2. Developers are offering attractive discounts and payment plans:
The developers and builders are in a very tight situation today. They have a severe liquidity crunch and they want to offload the unsold inventory that they have by all means possible. They have resorted to offering attractive discounts and payment plans to the clients so that there are more takers. All of this is an icing on the cake for a long term investor or someone looking to buy property for self-use. No developer would give these plans or offers if the market is hot and their product is selling like a hot cake. So it’s an advantage for all those people who are sitting on the fence and thinking of buying.
3. RERA is being implemented:
RERA (Real Estate Regulatory Act) has been passed by both the houses in the parliament and will very soon be implemented across all the states. Once implemented, it would ensure that the developers put their act together and they deliver what they promised. The act would ensure greater transparency and would force the developers to adhere with timelines, ensure quality construction and provide all the promised amenities. The consumers would also have a body to register their complaints with if any of the above commitments isn’t met.