You Guide To Flats In Zirakpur
With the turmoil going on from the past few days in the real estate market, we all know Demonetization was a major factor which is responsible for this transition. Demonetization has left the common users and many others with a cash crunch which doesn’t seem like to get over very soon. The major effects of demonetization are yet to be seen but the effects on reality market were instant and both the builders and buyers can feel the heat generated by Demonetization in this short time span.
1. Prices in the resale market have come down
A large number of homes bought today which are under the category of budget apartments in zirakpur are lower than 50 lakhs when we talk about either 2 bhk or 3 bhk flats. Most of these homes are bought by end users with primary money coming from hard earned savings of many years and other half consisting of home loans. However still a fraction of black money were included in the home deals. With demonetization this factor has reduced to almost zero. This change led to lowering of prices in resale or secondary market.
2. Increase in property transaction transparency
Post demonetization both buyers and sellers are forced to use digital payment methods for transferring the payment for property purchase. This has led to clean transactions and almost nonexistence chance of property transaction fraud. With the real estate bill and benami property act a lot of fake property owners will be removed from the system, which means more opportunity for end users and lowering of prices for houses and flats in zirakpur chandigarh.
3. Simplified taxes
One cannot deny the fact that the direct and indirect taxes poses a huge burden on the shoulders of common Indian property buyer. Other than the real estate bill the GST bill is also in the timeline which is another addition to the list of positives for the common people who are going to purchase new or resell property. Add to the fact that the GST bill will help reduce the direct and indirect taxes which will ultimately help the buyers with lowering of the property prices. Another major impact of the GST will be seen on the construction cost which will be lowered with the lowering of the taxation and hence lowering the prices of the construction material, the most important product in the real estate construction process.
4. Resale market opens up for new home buyers
Whenever we talk about real estate market, the salaried people are the most prominent buyers in case of budget property which are mostly 2 bhk flats and sometimes even 3 bhk flats in zirakpur in the starter category. As analyzed in the next article we can also see the impact of lowering of prices in the budget market when the cash component is removed from the market and the property sellers are forced to sell the property with having to accept the payment which leaves a legal trail like bank transfer, check or another digital payment methods. The salaried people are at a huge advantage here since they have the upper hand in in the deal like this as almost all the amount they hold is in the form white cash even if the amount is not in cash the other assets they hold are in legal tax paid accounts like fixed deposits and tax paid bank interests. Also worth mentioning is that most buyers in 2 bhk category flats rely on home loans so the chance of circulating black money or even helping in promoting the system of use of back money in the real estate market is less likely to happen.
5. Curb of usage of black money in real estate
We also cannot deny the fact that the affluent people are most prominent for converting their black money to white in real estate market by investing the money in resell properties and using cash component to infuse the black money they hold in cash. Another step for generating white money from previously invested black money is by demanding full amount of money in check while reselling those properties. This the major method of disposing the unaccounted cash of illegal black money hoarders to infuse their black money into the real estate market without appearing on the radar of the income tax officials which might mean losing of the black cash or even getting heavily penalized for being involved in the black money transactions which can be as high as 200% of penalty of the current cash they are holding.
6. Home loans can become easier
Government has showed us their commitment to increase transparency in the real estate market by introducing the Real Estate law, GST bill and the latest in the offering, housing for all by 2022. A lot of people are depositing huge amount of money in the bank currency circulation system. This has helped the banks in solving liquidity issues while lowering the interest rates to ease up on the emi factor for the middle class salaried section which in turn has opened up a new pathway for the budget buyers section to purchase their dream home.
All in all we can see that the new era in the Indian Real estate sector will be witnessed by both first time buyers, people looking to invest in real estate property and even new builders who offer quality construction will inspire the older real estate giants to follow the same level of commitment in the past as well as future projects.