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Five Reasons to Buy a Home in 2019

By March 11, 2019 No Comments

The year 2018 was of milestones for the real estate sector. Several new policies and act amendments like, GST, RERA, IBC, etc. and schemes like the Pradhan Mantri Awas Yojana (PMAY) and granting of various subsidy schemes for first-time buyers of residential properties have made the ground for you to buy a home in 2019.

Here are some compelling reasons to own your home this year.

The year 2018 was of milestones for the real estate sector. Several new policies and act amendments like, GST, RERA, IBC, etc. and schemes like the Pradhan Mantri Awas Yojana (PMAY) and granting of various subsidy schemes for first-time buyers of residential properties have made the ground for you to buy a home in 2019.

Here are some compelling reasons to own your home this year.

  • Tax Benefits on Home Loans

Regular home loans offer a range of tax benefits. These benefits include deductions on both principal repayment and on the interest paid in a single year under the Income Tax sections 80C and 24, respectively. These amounts can range from Rs 1.5 lakh to Rs 2 lakh on every segment.

Moreover, there are added benefits on taking top-up over home loans. Top-up home loans have lesser interest rates than personal loans and can be used for various purposes or exclusively for renovations and repair of properties. In addition to it, tax benefits can be claimed on top-ups too by citing proper documentation.

  • Reduced GST

From the current 12% GST levied on payments for under-construction properties and even for ready-to-move flats who have not secured a completion certificate, the rate is likely to come down to 5%. This move will definitely boost sales and provide confidence to end-users. Although the 32nd GST Council meeting didn’t reach a consensus, several attractive options have been considered which look positive for buying a home.

  • Increase in Rentals

No matter what the trend for capital values in the residential units sector, the rentals are seeing a steady upward trend. The demand for rented properties will push the rise higher. While home loan rates have attractively lowered, it makes sense to stretch a bit and build an asset.

  • Returns on Realty

The year 2019 foresees a lot of investment in residential properties from foreign investors and even non-resident Indians. Buyers can take advantage of this by securing discounts and deals across all segments. Besides, developers are also looking forward to off load the excess inventory and even holding back from launching new projects. Buying a home in 2019 will therefore mean good returns on investment.

  • Build Equity

Finally, the most compelling reason is to have an asset in your own name. According to Divya Seth Maggu, Valuation & Advisory Services, Colliers International India, ‘When you own a home, it opens up a number of options for you, both financially and aesthetically.’

To conclude, buying a home is profitable in the long term and will help increase your net asset value. But if you’re planning to become a homeowner in 2019, the time is right to make the move!

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