We’re looking at some of the lessons from 2019 that should be considered for those hoping to buy a home by 2020.Lots of things you can know from your experience. Now that 2019 is over, you can look back and pick up some items that can help make 2020 a better year. The previous year saw several major announcements affecting both the real estate sector and the home buying process.

img1: Real estate industry 

Some of 2019’s key announcements and events relating to the real estate sector area:

1. The Union budget 2019-20 announced the surplus tax deduction of Rs 1.50 lakhs on interest paid on home loans, for the affordable housing segment.

2. Permission to reinvest the capital gains of up to Rs 2 crores of a person, in two homes.

3. Increase in the standard deduction, from Rs. 40,000 to Rs. 50,000, for wage earners.

4. Introduction of first REIT in India.

5. The GST rate for residential real estate is reduced.

6. Creation of an Immobilien Stress Fund to relieve the sector’s liquidity crisis.

Few lessons to buy a house by 2020:

1 . Choosing the right project and Builder:

Choosing the right developer and project for homebuyers will be essential in 2020, he maintains 

The track record and financial integrity of the developer remain extremely important considerations, especially when looking at a newly launched project.Make sure the project is approved by RERA and is listed on the respective RERA website. Even for an under-construction project, the developer’s financial strength is significant. So, it’s important to pick the right brand.

Consideration should also be given to the construction stage of the project and possible customer reaction. One should be aware of their housing needs, and not just enticing pricing deals, “Adhiraj Builders suggests.

The right developer and a near-finished project may be somewhat costly but will prove to be a better choice for the home buyer by 2020.

Real Estate in Navi Mumbai 

2. Competition timing in the market:

In terms of pricing the market remains attractive. While ready-to-move-in properties and those close to completion remain preferred options, this inventory is also slightly expensive and represents a relatively smaller share of the residential market as a whole.

So, in this chapter, one has to move fast.  Attractive offers, discounts, and payment plans for new releases continue to be the standard and while they should not be the sole criteria for choosing a house, in terms of pricing, the home buyer never had it so good.

img2: real estate market growth 

3. Budget vs. Volume:

Carry out proper due diligence of your finances and budget, while also keeping in mind the most appropriate size and design of the apartment that will serve your purpose. Make the best choice. If budget is a constraint, look for smaller family-size starter homes, which will allow you to buy now and upgrade later.

Look at the offer of affordable homes. Some of them are targeted at middle-income classes by private developers and offer decent amenities within the given price bracket.

4. Smartly select the place:

Property seekers should note that projects differ according to the location, ticket size, in terms of offers, Deepak Goradia, Vice-President and Managing Director, Dosti Realty, points out the specialization of the company.

Properties in areas of steady growth or in developing areas will have more enticing deals for buyers than properties in developed areas.

Even banks and other financial institutions can sometimes offer incentives, in the form of lower interest rates for home loans and flexible payment plans, to improve the buyer’s buying experience, “adds Goradia.

5. The correct lending and savings balance:

Home loans are at their cheapest in a decade, so you can optimize the value of loans instead of depleting your savings.

While most banks lend up to 6-7 times their profits, this does not mean that your finances should be over-stretched.

It should not become impossible for you to service the debt after spending on household expenses and should leave room for savings.

Here again, the option of the right product is paramount, in terms of ticket size. In 2019, banks related their interest on home loans to the repo rate.

So, when the interest rate drops you can benefit immediately. If the interest rate moves up, however, then you need to be prepared to pay higher EMIs.

Keep track of interest rate movements in 2020. Apart from the above points, taxes should also be managed smartly, in order to get the maximum benefit from the allowable deductions on home loans.

Whether you purchased a home on loan in 2019 or intend to purchase it before March 31, 2020, you can take advantage of the Rs 1.5 lakhs extra tax deduction gain under section 80EEA.

6. Delivery times and project delays:

The construction process is also changing, with Indigenous developers following global best practices. Increased mechanization and construction schedules planned and monitored by AI (artificial intelligence) and IoT (things internet) will lead to reduced construction time. New standards, such as build technology from Mivan, save time compared to traditional brick wall technology.

There is also the greatest reduction of energy because there is no need for a special ‘ finishing ‘ of the surface of the wall.

Although delivery time can vary across regions, micro-markets, and ventures, it’ll be less than it has been until recently, “NAREDCO National President Niranjan Hiranandani maintains.

img3: Real testate graph overview  

7. Next decade’s demand and supply:

The next 2-3 years will mostly be driven by end-users in terms of demand and will increase by at least 10 percent -15 percent annually.

Delivery will depend on existing demand and on the quantity of existing unsold stock.

In the next 2-3 years, markets with large unsold and under-construction stock are unlikely to see new launches.

Navi Mumbai Property Rates Commercial / Residential January – 2020

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