Real Estate News
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How can A First Time Buyer Make Money from Real Estate?
Investing in real estate is the sure shot way of getting better returns. The increasing prices of properties across the country make it an easier investment option. Real estate is one such investment sector which does not have any set parameter or any budget restriction for that matter. The market is liberal and the investor can sell or lease the property at their own will to get better higher returns. Even though it is an easier option for the investment, beginners get confused as to how to proceed and pick out the right property. REITs: Real Estate Investment Trusts have recently gained popularity in India, though they have been us...
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Real Estate Sector Expectations are High from Budget 2017
The government has proposed several moves and laws in 2016 for higher transparency and stricter laws in the real estate sector. To make them a success, the government will have to tighten the norms and make sure the laws are abided by both the buyer and the builder. With the Union budget right on the corner, there are few expectations from the government for the real estate sector. Firmer policies, stricter laws and low cost housing is of foremost importance. It has been highlighted in RERA, the fake promises, the possession and completion related issue. There are certainly more areas that need to be looked in the upcoming budget: 1. ...
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2017 Promises to Be a Good Year for Investment in Real Estate
2016 has been a crucial year for real estate sector. From government’s policies to huge steps taken to curb the black money, every move has been reflected in real estate market as well. The breakthrough in the real estate sector happened when the government passed the bill for Real Estate Regulation and Development Act (RERA). The bill was proposed by the RERA supporters almost eight years back and it has been welcomed by both the buyers and developers. RERA promises more transparent and unbiased environment for both the builders and buyers. RERA is going to be applicable full force from 1st May 2017. The government has laid out certain po...
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New Interest Subsidy Scheme Set to Benefit Lower and Middle Income Groups
Continuing its efforts to provide housing for all, the union government, led by PM Narendra Modi, has announced an interest based subsidy scheme for home loans. Although the details are still to be notified by the centre, the middle class is expected to benefit from the sops announced by PM. People having annual income up to Rs 12 lakh will now be benefited with a 4 percent rebate in interest against home loans not exceeding Rs 9 lakh while those having a yearly income between 12 to Rs 18 lakh can avail a 3 percent rebate in interest for home loans. As per the soon to be implemented interest subsidy scheme, it is expected that the govern...
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SEBI Announces Disclosure Norms for REITs
India’s security market regulator SEBI has announced new disclosure norms for real estate investment trusts (REIT). As part of the newly curated disclosure norms, the said document will contain detailed information of REITs including financial data, historical performance and related party transactions. The move by SEBI to issue disclosure norms has come a month later after the security watchdog had stated norms for public issuance of real estate investment trusts. It is worth remembering that back then, SEBI had updated several regulations aimed at making the whole task of raising capital for REIT easier and a lot quicker. Back in 20...
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Reduction in 90 bps Lending Rate: A New Year’s Gift to the Borrowers
The impact of demonetization has slowed down the buying and selling in the real estate market and the buyers are now stepping back from investing in property. To revive the trust and the real estate market, major banks have decided to reduce the lending rate, which has come as good news to the borrowers. State Bank of India has recently reduced the lending rates by 90 basis points in one swoop. This has reduced the loan tenure by 3 to 5 years. The loan term of 25 years is now almost 5 years shorter. The banks don’t change the monthly EMI rate but change the tenure of the loan to align with the new rate. Though, the loans that are near comp...
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Real Estate Sales Come to Halt Following Demonetization and Benami Property Prohibition Act
Since the central government has put a ban on the higher denomination currency notes, Rs 500 and Rs 1000, the sales in the real estate market has gone down. Demonetization along with the re-emergence of Benami property prohibition act, the investors are dissuaded from investing in the real estate. The sales have gone down around 20 percent since November 8, 2016. Although, the end users and new willing buyers are now awaiting the reduction in interest rates and some price correction across the real estate market. Benami property act is even stricter than previous law and has threatened the investors. Though the government does not seem ...
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Real Estate Market will Experience more Transparency in 2017
The real estate market has suffered badly since demonetization almost two months back. The slowdown in sales has been reported throughout the country. The major reason behind it was the ban on the higher denomination currency notes (Rs 500 and Rs 1000). Since the cash involvement is higher in the secondary sector than the primary sector, the sales have suffered. According to experts, it will take a couple of months more for the sales in the real estate sector to revive. With the government’s move on benami property, implementation of Real Estate Regulation and Development Act (RERA), and the reduced interest rates by the banks, it is exp...
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Policies to Look Up To in the Year 2017
We know that the real estate industry in the last year hasn’t experienced a great boost. The prices and the home loan interest rates have been a little high in the year 2016. The homebuyers encountered a great problem in owning a house in the metropolitan cities last year, this lead to a fall in the demand and a rise in the unsold inventories. However, nothing to worry about, the year 2017 is expected to change this scenario of the industry and bring a boost. Let’s have a look at some of the policies or key factors that the real estate industry along with the buyers is looking forward to in the year 2017. 1. The first one is the...
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PM Narendra Modi’s next Big Target to Clean Black Money Invested in Realty Market
Such a brave and smart move by PM Modi. At least it’s a commendable effort and great start to clean off all the black money and corruption from India. A great step forward to enter into the league of becoming a developed nation and to be at par with all those completely developed countries. The change is clearly visible demonetization was just the first step to clean all the black money. But demonetization can only work if adjoining steps are equally worked upon where one being the corruption in the real estate sector where the maximum amount of black money exist. Getting into the cleaning of black money will only help us to know how pivota...
