Property hike is directly linked with the policies made or rated by Reserve Bank of India as the main tiebreaker is only RBI on taxes as well as on liquidity ratios incase of commercial or residential property. Any hike on real estate market is more or less determined by the strategies implemented by RBI. So the correlation between the climb in price of property or real estate is directly linked to repo reverse rates offered.
But the home makers or the developers need not to get upset with the hike in the policy rates completely as in spite of increase in cost declaration for the year 2010-2011 by RBI as the banks and other financial institutions responsible for providing loaning and funding in HOME LOANS segment to creditors will be raising the tax rates on property which is already declared revised. An action will be required to follow throughout the season by sales team with financial and loan department as hike in prices will somehow suck the market trend as the investor will start closing there hands by sudden turn up section on rise in prices.
Presently HOME LOANs are offered at the rate of 9-10% with different compiled schemes by different banks depending on the facilities and term of credit but this will be go up due to tightening rates and hard fluctuation of funds in the country we will face little set back in home investment. Hope the same will not carried to pitiable homeless children in long run.
For checking updates on post hike season on land purchase we have to wait for while as HOME LOANS rates which are declared liberal by RBI will be in the performance composition to hike in prices of land. Due to changed implementation of price plan many budgets will get hold up including the FDI and forthcoming land investment project to Delhi region.
Tags: bank of india, financial institutions, home loans, homeless children, investment project, land investment, liquidity ratios, loan department, market trend, reserve bank of india