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It is The Best Time to Invest in Real Estate Because.
Posted on 1st Jan 2018 16:42:34 in CA
If you were planning to invest in real estate from a long time then its good news for you.
According to the current situation of real estate market in India, the market is facing for the fourth time a recession period which is very unfavorable for developers and builders but a golden ticket for those who were planning to purchase a property.
The market has faced its 4th recession and created different lobbies for buyers and sellers as the effect of recession on buyers and builders are totally different, below we have mentioned various effects of recession on both sides.
Opportunity for Buyers
Fall in property rates: “One’s loss can be profit for others” same rule do applies in real estate recession as the loss of a builder is beneficiary for a buyer.
When the value of property falls every potential buyer looks for gaining a maximum profit out of that recession situation as a plan of long term investment.
Best time to invest: If you do a little bit of research and homework you can find the best property with almost more 30% less of its actual value.
And a situation of fall in real Estate market is a Win-Win situation for the buyers, so better to invest at the right time and in the right property, does consult with some Real Estate experts for better options.
Invest wisely: the market is low, property rates are going down and it is a perfect situation to invest in real estate but where exactly to invest is the biggest question.
Now what to check before investing is, The location of project, Builder’s goodwill, proposed govt. planes which will affect the cost and chances of rise in property rates in that area.
Recession for builder
Fall in rates: but the situation for builder is totally different as recession affects the builder most and he needs to bear the burden of financial loss at a huge scale.
Recession’s definition in real estate for builder is exactly opposite from buyer as recession means a temporary economic decline which directly do loss to builders, developers and brokers etc.
Construction cost increase: during the time period of recession the very first effect which comes in notice is the hike in prices of construction related requirements for example. Raw material cost, labor expenses and many more.
These factors do affects the real estate Price trend and creates problem with funds for builder.
Budget issues creates delay situation: As the budget of a builder faces the situation of decline, it directly effects the development of a project hence the funds are not sufficient project gets delayed and directly hits on the reputation of builder in the market. So recession could also be a threat to builder’s goodwill in market.