In India, the real estate market is currently undergoing a fundamental transformation. The real estate sector in the country has remained relatively static following the adoption of demonetisation, the Real Estate (Regulation and Development) Act, 2016, and the Goods and Services Tax (GST). Even though these reforms will have a significant positive impact on the sector, they must first overcome several time-consuming obstacles.
One of the reasons why developers and lenders have lowered their rates is to attract potential purchasers and revitalize the Indian housing market. In fact, there is no better moment than now to purchase a home in India from an investment standpoint.
We'll look at some of the best reasons to buy a home in India in 2022 in this article.
1. The price of a home loan has dropped
To expand their home loan portfolio, some of India's biggest financial institutions have lowered home loan interest rates in recent months. State-owned banks including the State Bank of India and the Bank of Baroda lowered their marginal cost of fund-based lending rate (MCLR), essentially lowering the interest rate to 8.30 per cent. Even private lenders followed suit, lowering their home loan interest rates. Many economists currently predict that interest rates will continue to rise from here.
2. Implementation of Pradhan Mantri Awas Yojana (PMAY).
Pradhan The Government of India introduced the Mantri Awas Yojana (PMAY) to provide affordable housing. Affordable housing will be offered to the country's urban poor who fall into the Economically Weaker Sections (EWS), Lower Income Groups (LIG), and Middle Income Groups (MIG) categories under this scheme (MIG).
Applicants who meet the criteria will be eligible for grants and subsidies from the federal government, according to the initiative's numerous components. The Credit Linked Subsidy Scheme is one of the components that are popular with the public (CLSS). If the eligibility criteria are met, a rebate on house loan interest up to Rs.2.67 lakh can be obtained through this scheme.
3. The 2016 Real Estate (Regulation and Development) Act
Is a piece of legislation that regulates and develops the real estate industry.
Prospective purchasers were at the mercy of builders and developers up until the moment this Act was adopted across the country. Many of them were taken advantage of and had to deal with issues such as hidden fees, delays in housing projects, and so on before ultimately receiving their ideal home.
Customers in the sector were becoming increasingly upset due to a lack of a robust procedure for grievance redress. The Real Estate Act of 2016 addresses this issue while also increasing openness in the real estate sector.
According to the Act, a Real Estate Regulatory Authority (RERA) has been constituted in each state and union territory, with the exclusive purpose of dealing with real estate concerns in that area.
RERA also has the potential to act as a mediator between builders and buyers in the event of a disagreement. Buyers who are displeased with the developers can file a complaint with RERA and make the builders responsible for their ineptitude.
4. Home Loan Tax Advantages
Aside from paying for your dream home, one of the best things about getting a home loan is that you can deduct a portion of the EMI you pay.
An EMI is made up of two parts: principal and interest, as you may know. According to Section 80C of the Income Tax Act of 1961, the amount paid toward the repayment of the principal amount of the home loan is eligible for a tax deduction, with a maximum claim of Rs.1,50,000. Similarly, Section 24 of the Act addresses the tax benefit on the interest component of the EMI for a house loan. For the same, the maximum tax deduction is Rs.2 lakh.
5. The Sense of Security That Comes With Owning a Home
Paying your monthly EMI on your house loan may appear to be a financial strain, but it is a commitment worth keeping. After all of your hardships and sacrifices, you finally have a house to call your own. It's a tangible asset with a rising value. If you require immediate cash, you can take out a loan against your property. No other investment is going to provide you with the same level of returns as owning a home. As a result, property investment is something you should think about doing at least once in your life. It will necessitate a significant amount of budgeting.
Interest rates are now low, and RERA protects the interests of consumers. If you can afford a home loan, 2022 is the year to take action.