Monday, May 8, 2017

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

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