Property investors with 10 to 15 years old home loans are now
finding it difficult to tackle rising interest rates. Besides high rates, they are also dealing
with less rental income, inflation rate, low wage revisions, high cost of
living and the worsening economic slowdown.
Amidst such less favorable events, selling the property seems
to the best option to escape from heavy EMIs and beat inflation. Over the last
few months, many such properties are put up for sale. Statistics show about
thirty percent increase in the sale of such properties.
Industry watchers take a closer look at the scenario.
Price water house Coopers’ executive director Shashank Jain says that this trend
is mostly happening in metro cities. Buyers of such property will benefit from
the reasonable rates, comparatively lesser than on-going market rates.
And, for the sellers of such properties, there is significant
rise in the price than at the time of acquisition. This is a beneficial deal
for both the sides, and buyers don’t have to deal with the risks associated
with new projects.
It has been a common practice to give properties for rent;
however, the rental yield from such properties fails to compensate the rise in
rates. This is yet another reason why people are opting to sell off the property.
However, experts also point out that these trends might have
a strong impact on current investments in India’s real estate sector. They
believe such deals will attract only primary buyers and not those looking for
second or third investment options.
No comments:
Post a Comment