Latest Posts

1. Pros and Cons of Buying vs. Renting

   January 24, 2018 8:50 am Leave a Comment

   After a few years of living in rental properties, the constant upheavals of having to move house as well as pandering to the whims of your landlord, begin to get tiresome and get you thinking; should you buy your next home or continue with the insecurity associated with renting home.

   While every person dreams of owning a home of their own at some point in their lifetime, buying a home doesn’t come easy in the pocket either. That having been said, buying a home is one of the best ways of building equity. With every EMI payment you make, you are making a saving as it increases the equity in your home. Owning a house makes your expenses more predictable over the years as against renting which is only set to swing upwards. Owning your own home also means that you are saving towards your future as home values only go up. Additionally, the interest and property tax payment portions of your EMI payments are eligible for tax deduction.

   Here are some pros and cons of renting vs. buying:

   Stage of life – While you are below 30, you are looking to settle down into a career and not a home. But after the age of 30, you are planning on setting up a family and it’s better to have your own home so children can grow roots.

   Setting up equity – By paying out rent money every month, you aren’t getting any asset in return; rather, you are just helping your landlord pay off his own EMIs and build his equity!

   Responsibility – It’s the homeowner who gets to pay the EMIs, property taxes, maintenance, so here the renter gets away scot-free, except that repair works are only done when the landlord’s wishes.

   Kids – Families with kids and pets are usually not on the priority list of landlords as they are considered, noisy and messy and capable of destruction. A homeowner gets to enjoy providing space for their kids and pets at their own discretion.

   Décor – A renter needs permission (not always given!) before they can make any changes in the home to suit their needs. Such is not the case with homeowners who can make whatever changes needed according to their tastes.

   Flexibility – Renters are free to move home to wherever they wish; though it’s believed that homeowners are unable to move, it doesn’t stand true, as they can always move out and give their homes out for rent and even earn a second income from it!

   Control – A renter is always at the mercy of the landlord increasing his rent or not renewing the lease as suitable to his own whims. A homeowner, on the other hand, owns his own home and there are no insecurities, only stability in every sense.

   Based on the above, becoming a homeowner seems better – but then, there are always two sides to every coin!

2. Has Demonetization Affected the Real Estate Industry?

   January 22, 2018 10:53 am Leave a Comment

   Since November 6, 2016, demonetization has dominated every conversation with debates flaring up incessantly on its effects on the various sectors. The realty industry hasn’t been left out of the debate either and due to fears of what demonetization could mean to ready-to-move-in homes, many buyers have been holding off from investing. Of course part of the reason is due to paucity of funds with many predicting that this could lead to further reduction in prices.

   With the realty sector contributing about 5-6% to the country’s GDP, misinformation on this can lead to potential chaos. Almost a year has passed, but rumours are still flying around about the effect demonetization has had on realty sector. Of course, the naysayers are of the opinion that paucity of black money has lead to lower sales rates, but builders obviously are of the opinion that the expected softening of interest rates, as well as the thin margins in the industry, haven’t resulted in price cuts or any negative impacts on the realty industry. Real estate is divided into luxury, mid- and low-end sectors, with their having been no direct impacts on the mid-market and affordable housing sectors.

   After the initial few months when homebuyers went into the ‘wait and watch’ mode (similar to slow-downs witnessed in other sectors too), sales are on an upward swing again on the back of numerous positive factors including a growing economy, low home loan interest rates, and deals and discounts by developers. Also, the primary market for ready-to-move-in homes are funded by banks as home loans, so effectively, this sector has been unaffected by the currency ban; just as precautionary measures, buyers delayed investments due to uncertainties on market trends.

   However, buyers should understand that this is the best time to buy homes and negotiate and strike deals as the climate is just right. Developers are also interested in selling volumes, so negotiations aren’t so difficult to swallow.

   Aside from this, credible developers with transparent business practices and their reputations at stake had their sale volumes unaffected by demonetization. Such Grade A developers are still expanding and launching new projects on a regular basis.

   And as far as secondary markets go, landlords are holding on to their properties and not selling now till they are sure that markets have stabilized. The popular hypothesis touted by many about tumbling realty costs has fizzled out obviously, but many landlords are still preferring to hold on to their properties till they are happy with the going rates. The realty industry did not tumble because most Indian buyers are end-users and not investors who could sell-off and get out of the market en masse.

   In conclusion, though the market was slightly affected post-demonetization, the sooner the realty industry stabilizes, the better it will be for all stakeholders.

COPYRIGHT 2024 - Heather Homes .All Rights Reserved.