Is Now A Good Time To Invest In Luxury?
Every individual dreams of a home that could be luxury personified; it is only our pockets that stop us from investing in them. However, pricing trends show luxury in the recent times has become far more affordable than it was earlier.
Is that true?
Under the impact of Prime Minister Narendra Modi's demonetisation drive, the luxury real estate in India is expected to see a price correction. According to Majesh Shah, one of the private wealth managers active in Mumbai: “Luxury realty had a fair share of black money component which is currently subsided. This is a great time for end-users to own a home as some of the builders are resorting to distress sale.”
However, buyers will have to incur higher costs on taxes, registration charges, stamping duty, etc, now.
“As buyers used to pay a part of the property value through unaccounted cash, the taxes were applicable on the actual property value for which the payment is being done lawfully,” added Shah.
The right spot
Tier-II and Tier-III cities offer good opportunities for investors eyeing luxury. Moreover, cities such as Lucknow, Jaipur, Hyderabad, Bhubaneshwar and Vizag have an active economy and good infrastructure, and also are well connected with the rest of India. Being booming employment hubs, these cities also offer better rental prospects.
What to look for?
Since buying a luxury home is an expensive affair, make sure you follow these tips:
- Understand the difference between your needs and desires. Be clear about the priorities.
- Invest time in knowing your neighbourhood even if you are buying the property for investment prospects.
- Look for a home, which has a strong resale value. Not every buyer looks for space or just the interiors or management of space.
- Go for a reputed developer only. Since a luxury house is all about the quality of the services, choose a developer who has a brand value attached to it.
- Due diligence is must. Make sure all the amenities promised in the agreement should be made available to you.
- Do not ignore the growth prospects of the location, the city and the property.
Also read:
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