The second wave of Covid-19 has brought distress for many sectors. Real estate too is severely affected by the pandemic. Reserve Bank of India, with an aim to strengthen the economy has declared many relaxations. This includes the lowering of interest rates for home loans. The low home loan rate was demanded by real estate developers. The key benchmark rates have been kept unchanged by the central banks’ Monetary Policy Committee.
Shaktikanta Das, Governor of RBI said that RBI’s accommodative stance shall continue to prevail to take care of the pandemic hit economy. The repo rate remains at 4% whereas the reverse repo rate at 3.35%. The good news is that the floating retail loan rates are at the lowest level over the past two decades. Due to their direct relation with external benchmark repo rates, they shall continue to remain lower in the coming days too.
Working from home is becoming the new norm. Now is the time to consider buying one for yourself. Major cities of India are witnessing the residential housing prices going down. There has been a relaxation in stamp duties in cities like Mumbai. The government has allowed builders to sell property up to 20% lower than the going rate without any taxes on the differentials against the erstwhile 10%.
The Atmanirbhar Bharat 3.0 package by the government of India allows the buying of a house up to a value of Rs.2 crore with a 20% incentive. This offer is valid till June 30, 2021. However, it is quite likely that such schemes are not going to continue indefinitely. Once the situation normalizes, all these benefits shall come to an end.
There has also been an uproar over the banking sector extending monetary support to the real estate sector. Banks and NBFCs rendering loans to the potential buyers of homes at lower rates of interest will result in a substantial demand in the real estate sector.
Looking to the various factors cited above if you are looking for investing in a house property or owning a house, now is the time get one without any second thoughts.
Smrutirekha Bhoi
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