Why Property Sellers Need Not Panic Over Demonetisation
May 17, 2017 Home Trading Steps
Eighth November 2016 shall always be remembered by all the countrymen for the brave move taken by our Prime Minister, Mr Narendra Modi. In the late evening of this day he had declared the demonetisation of the existing Rs.500 and Rs.1000 notes. They would henceforth be “worthless pieces of paper”. However, the process of depositing demonetised notes continued and the last date for this is December 30.The main objective behind this strong move was aimed at curbing the use of unaccounted money — popularly known as black money along with controlling the circulation of fake notes. But the initial reaction of the entire country was deep shock and panic.
This decision has undoubtedly affected almost all the people of the country in some way or the other. In fact, some experts had predicted that impact of the announcement was going to be devastating. And the real estate sector was on the top of this list. The reason for this panic is: a huge amount of cash transaction takes place in this sector. All hopes of the home sellers, who were expecting to secure good returns on their investment by selling properties this festive season, were lost with the news. Moreover, media reports kept adding to the jitters of these sellers, predicting a great fall in property prices.
But if you analyse the situation in depth on the following line of thought, you can surely understand why there is no reason for sellers to lose hope. Nevertheless, you should not have undue expectations.
For this reason, some reality check is necessary:
This is the time to sit back and wait till the ripples come down. Unless it is an emergency, do not sell a house that you bought for Rs 40 lakh five years back at Rs 35 lakh now.
Those who have taken home loans should not expect cutting down of prices right at this moment.
Unlike the good old times, prices of your resale property are not going to double.
But on the brighter side:
Home buying is never going to be out of fashion. Not only does it have great financial implications, especially those properties that are bought in the major cities, but for most of us, it is an emotional investment.
Within a short period of time, money transactions will flow, and buyers will soon come back to the market.
However, India’s real estate sector has to redefine itself. There is a perception about Indian real estate market that, the sellers have been securing money through wrong channels. In simple language, a huge amount of black money had said to be involved in the property sale and purchase in the Indian market.
The demonetisation move is an opportunity for those who were not there to use the real estate sector as a money-making tool.
For all these reasons a genuine builder, as well as a home buyer, need not lose their sleep because of demonetisation.
This decision has undoubtedly affected almost all the people of the country in some way or the other. In fact, some experts had predicted that impact of the announcement was going to be devastating. And the real estate sector was on the top of this list. The reason for this panic is: a huge amount of cash transaction takes place in this sector. All hopes of the home sellers, who were expecting to secure good returns on their investment by selling properties this festive season, were lost with the news. Moreover, media reports kept adding to the jitters of these sellers, predicting a great fall in property prices.
But if you analyse the situation in depth on the following line of thought, you can surely understand why there is no reason for sellers to lose hope. Nevertheless, you should not have undue expectations.
For this reason, some reality check is necessary:
This is the time to sit back and wait till the ripples come down. Unless it is an emergency, do not sell a house that you bought for Rs 40 lakh five years back at Rs 35 lakh now.
Those who have taken home loans should not expect cutting down of prices right at this moment.
Unlike the good old times, prices of your resale property are not going to double.
But on the brighter side:
Home buying is never going to be out of fashion. Not only does it have great financial implications, especially those properties that are bought in the major cities, but for most of us, it is an emotional investment.
Within a short period of time, money transactions will flow, and buyers will soon come back to the market.
However, India’s real estate sector has to redefine itself. There is a perception about Indian real estate market that, the sellers have been securing money through wrong channels. In simple language, a huge amount of black money had said to be involved in the property sale and purchase in the Indian market.
The demonetisation move is an opportunity for those who were not there to use the real estate sector as a money-making tool.
For all these reasons a genuine builder, as well as a home buyer, need not lose their sleep because of demonetisation.
Looking for property portal?
Related Articles
-
-
-
-
5 Financial Mistakes that You should Avoid
Jun 03, 2017
See comments (0)
Write a comment
