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An increase in lending rates is almost inevitable, considering the high need to curb inflation. On its own, an increase in lending rates would probably not have a very significant effect on the market. However, the fact is that there are already a number of negatives such as overpricing at play in the residential real estate sectors of large cities like Mumbai and Delhi.
There is a school of thought that states that you should buy a home as soon as you can afford it, or as soon as your home loan application is approved. In fact, the only question one tends to ask in context with home buying is whether property prices and interest rates are amenable at that point in time or not. On the surface, this makes sense. However, not all surfaces are reliable mirrors.
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has suggested the government to introduce Real Estate Investment Trust and Real Estate Mutual Fund to enable investors to own a diversified portfolio of professionally managed assets in the real estate sector. In a note submitted to the government, the Chamber said that the Indian Real estate sector currently lacks any monetization vehicle for capital intensive verticals such as commercial offices and retail malls.
Property management as a subject of specialized study has hardly been discussed in India. While the industry gropes with the huge manpower shortage in almost all functional areas of real estate including property sales, marketing & brokerage, expertise is hardly available in the industry.
Most banks lending for homes are only interested in providing mortgages to people who have a fixed annual or monthly salary and their important criteria for assessment is based upon the amount that is earned. The presumption is that only these people are capable of meeting their repayment options without default.
Capital market regulator the Securities and Exchange Board of India (SEBI) has apprehensions over the feasibility of real estate investment trusts (REITs) in India. The regulator had issued draft guidelines for REITs a couple of years ago, but may drop its plan to introduce it now.
Various factors can negatively affect the value of one’s real estate assets. Being aware of these is an inalienable part of successful property investment.
India Property Tax Rates have been rationalized as whole taxation system has undergone a change. These changes are basically to evolve the system and raise it to international standards.
Home is the most integral part of an individual, who since his birth and childhood, dreams to have a living space of his own in India. Once in a lifetime investment requires loan to accomplish it, and that is how the home loans comes into the scheme of things.