Home Loan will be available on Lower rate - Due to huge cash deposit in the bank account. The collection is expected to cross Rs. 10 Lac crore. The bank will be having all time high deposits the liability to pay interest on the deposit bank have to give loans to in the market. As the bank can only earn by lending money to the borrowers which leads to reduction in the home loan rates the current home loan rate offering by banks and financial institutions are around 9.10 to 9.25. which is also expected to come down by another 1-2% in coming time ahead. Which results in more home loans will be distributed for buying real estate. Bank loan can be reduced to the prevailing rates any time during the loan period by giving application to the financial institution which small conversion fee. It wlil give more confidence and affordability of buying property to the buyers
Good News for End users/Real Buyer- Interestingly their will be positive impact on Primary market and good news for end users or real buyer who can only buy property availing the home loan. The first time Home buyer who is living on rent or what to relocate on new location will be positively benefited due to reduction in price and clear transaction/deal.
Good News for Builders and Real Estate Projects- There is a good news for builders and real estate projects due to better transparency in the system. When the secondary market will be get effected the buyer will prefer to buy from authentic real estate developers who have good track record and deliverability. The builder will accept 100% white and the buyer is also happy to pay consideration amount through cheque and home loan. Long term their primary market will grow rapidly .
Adverse Effect on Secondary Market / Resale- Due to Change in Indian currency the most effected market will be the Secondary Market which is also know as resale market in real estate. The properties of Resale will be effect badly due to involvement of un accounted money (cash) in the transaction value. Now the seller have to accept the 100% white in transaction and needs to pay the capital gain tax to the govt. Other wise the cash which was the major portion and component of resale properties can not be converted into new currency due to limit of exchange policy of the govt. i.e. Rs. 4000. The rates are expected to decrease by another 15-20%.
Benefit of implementation of RERA (Real Estate Regulatory Authority bill).- Implementation of RERA will give confidence to the buyer of timely delivery / possession as well as the clear transaction deals. Due to many clauses on conditions on the developers related to the non diversion of funds from one project to another and heavy penalty on account of delay possession, buyers will fearlessly take the decision of buying the underconstuction properties and projects. Buyer will get home loan on lower rate and able to manage his lower EMI with more confidence. The decision making will be fast which give boost to the real estate market.
Big Boost to India Economy- Inflation will come down , govt tax collection will be on all time high, govt will have more funds to build roads & infrastructure. The FII( Foreign Institution Investments) inflow will be more the GDP (Gross Domestic Product) will grow faster the ever before, maximum use of plastic money or online transaction for sale-purchase.