The Real Estate (Regulation and Development) (RERA) Act 2016, has finally come into effect. In March last year, Rajya Sabha had passed the Rera act, which was aimed to bring transparency in the real estate sector.

The Union Ministry of Housing and Urban Property Alleviation had however provided a time of one year until May 1, 2017, to states and Union territory for formulating and notifying rules to ensure the smooth functioning of the regulator.

It had been noticed that from the past few years, the investors weren’t too keen on putting money in the reality sector, due to lack of transparency, highest black money and corruption, delay in completion of projects and various other factors.

For home loans click here 

Combining all the factors which are mentioned above, foraying into the real estate was generally considered risky.

But now that RERA has come into effect, things look bright for the real estate industry.

How RERA will affect home buyers.

In the past, if there was a delivery delay, buyers could do little, but now that RERA has been brought in, it will ensure that the delivery is on time and even if there is a delay, Buyer is compensated properly.

Not only will the money invested by the buyers, even the pre-agreed amount of interest rate mentioned in the contract will have to be returned by the developers. For buyers not willing to take back their money, developers would have to pay interest to the buyer on each month delay until the delivery.

The average home loan rates have gone down by more than 1% across most banks in India in the last 3- 4 months. The lending rates now are now down to 8.35% – 9% per annum across major banks across the country.

With RERA coming to the rescue of the buyers, it seems to sort out the project delay issues, tax benefits which buyers can claim after possession within five years from the starting date of construction of the property

If you are planning to invest in real estate, right now is the right time.

The post With RERA kicking in, now is the best time to buy property appeared first on Corporate Finance Loans.