FLAVOUR OF THE MONTH· It could beat inflation.
· As the value of the tangible
asset is huge, unless and
until there is uncertainty it
cannot lose the value
completely.
· Home loans provide tax
benefit to the individuals.
· House property could be
utilized for a debt instrument
i.e. utilizing it as mortgage.
· Going for a rent than
purchasing a flat would be
beneficial to the individual
who shift location.
· There is less volatility in this
investment as compared to
the unstable market
condition.
· As, house property has
higher value getting a loan
becomes easier.
· There is higher chances for
an appreciating value in a
house property that gives
rise to growth potential in
this investment.
RERAs role in house property
RE R A i s R e a l E s t a t e
(Regulation and Development
Act) 2016 that is implemented
to protect the home buyers and
boost investments in real
estate. This Act has brought in
transparency in the investment
segment with real estate,
avoiding any malpractices that
could be involved by the
builders and promoters. In
situation when the owner feels
the builder could do something
wrong with regards to the
property the owner has the
right to complain about it to the
authority of RERA. The biggest
responsibility of a RERA is
being a government body to
safeguard the interest of the
home buyers. In order to
enhance the trust of the buyers
on the builders and real estate
the Act comes in place.
Some essential features of a
RERA act is:
· There is a mandatory
registration required by
residential as well as
commercial real estate areas
having projects that are
above 500 sq. mt in size or
having eight apartments.
· A minimum of 70% of the
buyer's money is kept aside
in a separate account of
which the value will be used