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Impact of RERA and GST – Investors Looking For OC Ready Residential Projects in Alwar
by R.Tech Developers R.Tech DevelopersWith the implementation of RERA (Real Estate Regulation and Development Act), the real estate industry, especially residential projects in Alwar, is seeing major changes. The enactment strictly proscribes developers from marketing their projects that are under-construction, while consenting on advertising projects that have their OC (occupancy certificates) ready. This brings buyers more inclined towards investing in properties that are essentially ready for occupancy or ready-to-move-in.
There is no denying the fact that possession-ready properties are pricier than the properties under-construction. However, investors in current times are ready to invest in properties on an immediate basis, afore waiting for years for construction to be completed.
Following are a few reasons for investors to look for projects that are OC-ready or ready-to-move-in, in today’s real estate market:
Cost differences
The last year was worst for real estate market, which resulted in lower new launches, higher unsold units, and price reductions. This forced the builders to provide their customers with attractive discounts, freebies, and deals. Although the industry is recovering from its downward phase, the above-mentioned dynamics are still at work.
Hence, it makes obvious for the investors to put their life-savings in ready-possession properties, more willingly than waiting for new projects to be launched and delivered over lingering periods of time. With the gradual market recovery, the market prices have started increasing, but this increase is at its initial stage, hence it makes sense for investors and buyers to focus on OC-ready properties.
Cost of rentals
The newly launched projects are utilized by investors who use loans from banks and other financial institutions, involving substantial financial drain. Not only do the investors have to pay back the EMIs on the loan but also monthly payment of the rent for their current homes. Whereas, paying little more and acquiring the house without ado is cost-effective than undergoing two big deductions over long periods.
Date of delivery
In India, the newly launched projects or the projects under-constructions are infamous for delays, these delays often result in an increase in unit costs and the rental for existing property. Despite the fact that the delays have their own justified reasons, at some point, the financial situation of some buyers do not allow them to wait beyond a certain point of time.
Rental income
Many people put their money on properties with the sole aim of earning regular rental income, with a quick evaluation of resale to cash-in on asset appreciation. Investing in a property in a ready to deliver project, aids them to start earning almost immediately through rentals, instead of locking their money on a non-income generating property.
Supporting infrastructure
Many newly launched projects are allotted with lands on the city peripheries, where the supporting infrastructure, which includes: roads, water connection, electricity, etc. are still to be developed. These infrastructure necessities are promised only when the project reaches its completion phase and the under-construction projects have to wait for the deployment of these basic infrastructural needs. This is a big put-off for a buyer who wants to move into his new home.
Impact of GST
With the implementation of GST (Goods and Services Tax), there is a considerable reduction in tax, thus reduced burden on the investor who wants to invest in OC ready property. The tax on the project cost, which also includes land, will be charged at 12%. This brings the developer in much stable stage and in a better position to claim input credit, hence, making ready-to-move-in properties more economical for their consumers.
Moreover, retailing properties that are ready with the developer, works in his favour, since selling them would help him in shedding off his unsold unit and attain liquidity to broaden his investment to businesses, which are in demand.
Apart from the above factors, the government made it mandatory for the local bodies to the strict implementation of the rules and the developers need to be careful and remain extra cautious to follow the same.
For more information on residential projects in Alwar, their cost, dimensions, and delivery schedule and other infrastructure related queries, visit https://www.rtechgroup.co.in/
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About R.Tech Developers 
R.Tech Developers
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Created on Nov 11th 2017 03:31. Viewed 568 times.
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