Buyer’s Cry: To Buy or Not To Buy an Asset

Potential homebuyers have always been categorized as either buyers or tenants. For instance- Mr. Shubhajit Chatterjee was looking for a suitable property in north Kolkata for his family of four. But his search and research went on without any limit as he was totally perplexed with the various options he was getting within his budget. There were luxury properties with rental provision and as always there were on hands. In this course he almost had reached to a saturation point where he had to make a full stop to it. He chose buying over rent. Here’s why this confliction between buying and renting shoots a potential buyer at the beginning of the entire occasion-

Rented properties 
Rental properties don’t need humongous money to be invested after. The choice has flexibility of alteration of residential items. In case any problem with the property; landlord is the person to contact without spending a penny from your pocket. Hardly 20% of the property value has to be paid during the contract. So there is no burden of interest of home loans involved in the business.

Buy properties
Your asset is your sole possession. It’s an investment of lifetime. None can throw you out of your house as there is nothing that deals with any contract here. Stability of an asset brings you the optimum level of security and pleasure. Over the time the valuation of the property gets higher. Real estate investment is much secured than investing in any bond or mutual fund which envelops market risks. There would be no tantrums of any landlord.

If you take a home loan to buy your residential property the principal amount repaid up to 1.5 lakhs qualifies for presumption under Section 80C; while up to 2 lakhs of interest paid is tax-deductible under Section 24. For tax deduction buying asset could be a safe choice.
Rather than rented properties owning asset has a greater sentiment involved. You are going to have the entire control of your property for decades. You can put them on rent or use as PG accommodation too. Thus owning home makes more sense than being a complaining tenant.

_ By LNN (Liyans News Network) 

It’s 60% Returns in 2 Years For The Buyers

Mahindra Lifespaces a residential project was sold at 2275 Rs per sq ft during the initial offering stage. Buyers of these properties are mostly were the ultimate users. The combine end user ratio was 80:20, while being in the under construction these apartments used to have this ratio at 50:50 level. People who were interested in buying these properties have already done their investment. Roughly, withdrawal level was 2% after the post development stage. Now after the demonetization announcement some abrupt changes have come in these back out percentage. After the declaration of money ban buyers who had already paid the booking amount started thinking that the currency ban would have a correctional effect on builders’ inventories. They were in total confusion whether the price will rise or go down not at all for the builders’ capability of project deliverance on time. Now it’s retailing about Rs 5000 per sq ft. Last set of buyers are likely to get 25-30% returns.  700 units are handed possession and over 500 families have already occupied.

Speaking about the area like Dwarka Expressway has witnessed a lot of developments starting from the year 2009. With the each passing day this place is likely to see more and more potential property buyers with positive buying sentiment. Now with the decision of central government to connect the area with 42 mtr 2 lane expressways will fuel up the progress of the area on a broader spectrum. Now we try to explore why people are interested in investing in these properties, in Kolkata the situation is reverse rather than laying out money on residential properties people are keen to buy commercial properties in Kolkata in areas like Rajarhat and Salt Lake. These two areas have come a long way in terms of infrastructural growth.

Dwarka Expressway the investment zone 
People will have a wide ranged offering of residential units based on individual prices. All the residential apartments are uniquely crafted with breathtaking new age features. The average claim along the Dwarka Expressway is for 2&3 BHK units of about 1000-1450 sq ft in the below Rs 1 crore per unit category. Not only that investors are putting their money on these projects as they find the value of investment in these apartments are higher than investing any other asset of the city.

On the completion of the highway 
As soon as the highway connector will put to an end chances of a price hike is likely to be foreseen. Currently, Gurgaon is retailing for Rs 9,000-10,000 per sq ft. Price to go up to Rs 8,000 once the Expressway is done. The Bijwasan connectivity will definitely increase convenience of the buyers. It says that with the new investment comes up it will make more than 60% returns within the 2-3 years with the infrastructure growth.

Chief commercial influence 
The expressway connecting Delhi and Gurgaon have wide spread open spaces all around. Its immediacy to the recognized business hub of Udyog Vihar is a booster. The Metro connectivity between the Dwarka Expressway development and the established Gurgaon city is also a bonus gain. Conversely, prices are at least 10% cheaper than the developed portion of the city which can be easily compared with the flats in Rajarhat area of extended Kolkata. These flats are outstandingly designed and of lower price in comparison to the other key areas of Kolkata. These properties are also situated in the proximity of IT hub Salt Lake.

In conversation with Ramesh Ranganathan, business head - Residential, North and West, Mahindra Lifespaces on the recent property buying trend in Dwarka Expressway Ranganathan shares, “In 2009 we saw Sector 110 as a place close to the existing social infrastructure in Palam Vihar. The land was really close to Palam Vihar and was cheaper than rest of Gurgaon and so we found it economically viable. Since social infrastructure was already in place, we found it easy to sell to people who stayed in Palam Vihar. These people wanted to upgrade to gated communities with club houses and lifestyle features.”