Property investments are pivotal if one needs to save up for a secured future. Considered to be the most coveted in nature, residents need to plan in advance and allocate surplus funds in order to arrive at constructive purchase decisions. The Indian property market, say 10 years back wasn’t performing as expected. Real estate brokers who worked with first-time property aspirants weren’t able to meet up set expectations which resulted in delayed project delivery. Property developers were left with inventory that have to be sold for liquid assets for their upcoming projects. With rising demand for residential homes, the Indian realty market was not performing up to set standards. However, with the inclusion of governing bodies like RERA and formidable tax reforms such as GST, the national property market is at an all-time high. Realtors are required to sign up with such entities which gives them an identification number which would be shared with investors who are looking for property investment options. Also, any delay can be risky as developers are liable to hefty penalties.
Builders are now devising affordable strategies that would help residents invest at the earliest and help developers release their excess inventory. There are numerous benefits if one choosing to tie up with projects that are RERA certified. It would give residents complete information about the property, the project features, amenities, floor plans, specifications, land ownership transfer and legal formalities that have be abided with. The recent GST rate cuts for under construction projects has helped residents formulate affordable budgets and invest in properties based on their requirements. RERA or the Real Estate Regulatory Authority act, which was passed on 2016 cater to individual needs of residents and is entirely customer-driven.
Here is how an investor can benefit from RERA rules and regulations.
Prompt project delivery
Back when the Indian real estate market wasn’t governed by a regulatory body, residents were promised expectations that were often not met. This wasn’t healthy for the industry as residents were not quite skeptical about the delivery. This wasn’t good news for the developer as well as it affected project credibility. The inclusion of RERA and tax reforms such as GST has brought about a sense of purpose and order in the Indian real estate market. Property developers are liable to hefty penalties in case of any delay in project delivery. This has brought about structure in operations as prominent builders can strategize their priorities and go about creating residential architectures. With prompt project delivery, residents have the necessary time required to consult, analyze and implement affordable purchase decisions.
Before the RERA act which was passed on 2016, customers weren’t provided any written information like a brochure that would be available to residents who area looking to purchase properties. As far as the features are concerned, residents weren’t provided with a final copy which would entail the entire project and investors were literally at the mercy of realtors. Developers would make changes that resulted in change in individual perspectives. However, with RERA into the picture, realtors are not allowed to amend project specifications after the details are presented to residents at the initial stage. According to Section 14 of the RERA act, only with prior consent of customers who have booked units can any developer make any changes that would suit individual residential expectations. Residents who are forced or compelled by developers to be alright with changes can file a complaint under section 31 of the RERA act. This gives end users the privilege to trust and make concrete investment decisions. Developers, on the other hand should promote complete transparency with prospective investors which would help establish business relationships.
How is RERA going to impact potential property aspirants?
There are many ways by which residents can benefit from RERA. For instance, as far as project delivery and specifications are concerned, developers are to strictly adhere to the information provided to customers and can alter features only with the customer’s prior consent. Similarly, developers are not allowed to promote or advertise their project before they are provided with a RERA identification number. Legal papers in regards to land acquired should be shared with the customers so residents know prior ownership data to be on the safer side. Therefore, considering what RERA and tax reforms such as GST has to offer, investing with RERA registered projects is nothing short of a jackpot. Happy Investing!