Home Loan rates Slashed.

Lot is going on in the Real Estate market. The latest is the rate cut by 25 Basis Point (bps) by India largest lender that is the State bank of India. This bring the affordable home loans to 8.35 pc per annum, the lowest in the market.

While the woman borower get a home loan at 8.35 pc for male salaried the rate will be 8.40 pc for loan upto 30 lacs. Over and above an eligible home loan cutomer can avail of an interest subsidy of Rs. 2.67 Lakhs under the Pradhanmantri Awas Yojna Scheme.

To supplement the affordable housing push, SBI has also come up with special offerings for the construction finance to the builders for affordable housing projects. This will give dual push both for the construction finance and also for home finance for affordable homes.


Flying Shark.

Want Your Home ? This is the Best time. Know Why?

Having his own Home is everyone dream. But the sector was so badly overtaken by the corrupt builders due to lack any governing authority that millions of people lost their money and didnt get their home. Some who got dint get the property to be registered under their name as the unscrupulous developer just gave them a self written NOC to shift in a society which was still under construction. Lack of facilities, Dust, Leakages, Seepage became the end users daily chaos. but he was complelled just to prevent the over burden of rent and the EMIs.

But now this would change after coming of the RERA and now the developer cannot escape with their responsibility towards their customers.

Secondly, on the point of affordability this time is the best time since 2005.
Mortgage rates have come down by 150 basis points which is 12 Years low and this is gradually improving affordability. as per latest data average prices across cities have felled by 1.67% sequentially over the december quarter. as the developer is eager to liquidate inventory in a market badly hit by demonetization.

Affordability has improved much more for the lower ticket priced home. For instance for a 20 lakhs house credit linked subsidy scheme (CLSS) is around 10-12 per cent of cost, which has led to improvement in affordability levels to best ever.

Further, the government is incentivizing affordable unit construction through changes like affordable house having a carpet area of 60 SqM with affordable project seeing tax rates at effective 20 per cent versus 34 per cent. Also giving infrastructure for such projects has further improved the sectors ability to get cheaper loans.

Flying Shark
Inputs from ENS Economic Bureau

RERA: What Should You Know?

RERA or The Real Estate Regulation and development Act 2016 was passed by the Indian parliament in March 2016 with an aim to bring in transparency in the Real Estate sector and protect the consumer who are the main victim of the Builder - Neta - Authority Nexus.

The Details of the Act you can easily find online, but here the objective is to let you know what is the status of the act Vis-a vis State and the UTs and where the Act stand as of now.

As of today only 13 states have notified RERA and it migh take another few months before it becomes a reality across the country.

Some of the important points of the bill are as follows:-
1. RERA covers all projects with minimum plot size of 500 sq M or Eight Apartments.
2.In order to prevent diversions of funds 70% of the money collected by the Builder would be deposited in a separate Account.
3.Now no Builder can avoid refund for Years but he will have to refund within 45 days in case of cancellation and also have to pay equal penalty in case of delay of projects.
4.All ongoing projects and new projects shall be registered by Builder with RERA within 3 months i.e by the end of July.

Though there has been states which have diluted some provisions like related to ongoing projects but still in the long run this regualtor would be very beneficial for the sector. It will segregate the serious players in the buisness with the Black Sheeps. This will help in building confidence of the investor and the end user to the sector which will result in greater capital inflow in the business.

Flying Shark.