A few days back say on 31st December 2016, the interest rate was 9.10% and now banks have offered at 8.60% or even lower etc. For a 1 Cr property on an 80% loan the earlier EMI for a 20-year loan was Rs.72,493/- which now at 8.50% will be say around Rs.69,426/- and if the Interest rates fall to 7.75% as well, then it will be around 65,676/-. Going forward you can save around Rs.8000 more for an 80 Lacs loan for 20 Years. Which perhaps can help you pay the loan earlier or buy the New Automatic Cars or your disposable income goes up.
By the time we get to the later part of January we will have clarity on the real economic impact of demonetization. Once, the impact is clearly seen, the RBI will be able to align itself with the market expectations. We also expecting some good tax cuts in the upcoming budget, so there will be further saving on the outflows.
Money in Real Estate Sector contrary to the belief of many people in the financial Market, does not remain in the hands of one person being the Seller or the Developer. In fact it flows into multiple channels, industries and the list is endless, so it’s imperative in today’s date and time that the real estate market should be given more impetus as this alone will lead to a good economic movement, growth and prosperity.
The current situation is actually the most opportune moment for Home Buyers in the market, as while the reforms are taking place and markets need a good 2 months or so to align, it may be a good idea to go ahead and close on the deal which you are getting today. As once the markets go into a movement post-March, what all is available currently, will not be there and surely the prices will increase.
Over the past 2 months, a handful of developers have already increased prices in the anticipation of a strong negotiation from the home buyers thinking that real estate market is going into a free fall. Agreed, that the sentiment has been low, however, no developer or seller will go down 20-30% percent. Marginal negotiations or even good negotiations are a possibility but they are closed-door negotiations which happen all the time in good or strained times.
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