This is the right time to buy the property
Aug 18, 2017 Home Trading Steps
When you think of buying or investing in property, you have to tread carefully, make sure everything is to your advantage. From bank loans to the right property, everything has to be well thought upon and measured carefully. When you ask your friends or relatives, they would suggest you that this is the right time to invest in the property.
Thanks to Real Estate Development and Regulation Act (RERA) coming into force in every state of the country, the real estate sector will now see strict governance and better authority to make sure that the interest of the buyers is not exploited by the developers. Timely delivery and promised construction with the good quality material will be the motto of RERA. Not only RERA, but the application of GST in real estate sector will reduce the prices of the property. Under GST, the buyer will only have to pay one set of tax as compared to the different taxes that were levied at different stages while buying the property.
If these two doesn’t make you want to invest in property, then the next will definitely make you give a thought. The banks and loan lending companies have come forward and are now offering low rates on the home loans. Demonetisation has over flooded the vaults of banks, urging them to reduce the interest rates. The RBI has also reduced the repo rate further by 25 bps. The repo rate is currently 6 percent which is the lowest since 2010.
Since April 2015, there has been 150 bps points reduction. The banks and lending companies have reduced their MCLR to the range 75- 250 bps during the same time.
Since the banks have the habit of not passing the entire benefit to the borrowers, the RBI has come forward to help the buyers. RBI has setup an internal panel which will monitor the banks and will submit the report accordingly in late September. It is likely that the panel will suggest the banks to link their lending rates to the market determined benchmarks.
The RBI said in a statement on developmental and regulatory policies, “Though the marginal cost of funds-based lending rate (MCLR) system is an improvement over the base rate system, monetary transmission by banks has not been entirely satisfactory.”
As of now, the buyers shouldn’t worry about buying the property. It is indeed the best time to invest in the property when the loan interest rates are less and the government is making efforts to make sure you get the best and fair deal.
Thanks to Real Estate Development and Regulation Act (RERA) coming into force in every state of the country, the real estate sector will now see strict governance and better authority to make sure that the interest of the buyers is not exploited by the developers. Timely delivery and promised construction with the good quality material will be the motto of RERA. Not only RERA, but the application of GST in real estate sector will reduce the prices of the property. Under GST, the buyer will only have to pay one set of tax as compared to the different taxes that were levied at different stages while buying the property.
If these two doesn’t make you want to invest in property, then the next will definitely make you give a thought. The banks and loan lending companies have come forward and are now offering low rates on the home loans. Demonetisation has over flooded the vaults of banks, urging them to reduce the interest rates. The RBI has also reduced the repo rate further by 25 bps. The repo rate is currently 6 percent which is the lowest since 2010.
Since April 2015, there has been 150 bps points reduction. The banks and lending companies have reduced their MCLR to the range 75- 250 bps during the same time.
Since the banks have the habit of not passing the entire benefit to the borrowers, the RBI has come forward to help the buyers. RBI has setup an internal panel which will monitor the banks and will submit the report accordingly in late September. It is likely that the panel will suggest the banks to link their lending rates to the market determined benchmarks.
The RBI said in a statement on developmental and regulatory policies, “Though the marginal cost of funds-based lending rate (MCLR) system is an improvement over the base rate system, monetary transmission by banks has not been entirely satisfactory.”
As of now, the buyers shouldn’t worry about buying the property. It is indeed the best time to invest in the property when the loan interest rates are less and the government is making efforts to make sure you get the best and fair deal.
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