16 November 2011
Present Home Loans Scenario and the Borrower
Present home loans scenario is still before the storm. With so many financial housing companies offering and offering perks, facilities and concessions still the market trend is not getting the right push. people wishing to buy ne homes and applying for home loans is going on a snail pace movement. Many financial institutions have come to terms with the losses they have to bear with unsold flats and lots of stuck up finances in their new constructions. Why are so many flats unsold and why did the festival season not bring smiles on the faces of satisfied sellers and satisfied buyers except for a few?
The home rates are shooting the sky and the common man still cannot afford a good house. With so many articles in the media it is a well known fact that homes are built only for the rich and upper middle class. The majority homes constructed and built target only the upper end of the financial circle and there are hardly any or in fact very few budget homes available. People are not having any in-between option to purchase a new home or go in for investment in a second home.
With property and home rates ranging from fifty lakhs to one crore and more for the same one bedroom hall kitchen flat is over whelming and important to note at. Are the salaries increasing at the same rate and are the finances improving at the respective percentages as home loan rates? You end up with paying a huge sum as interest and buy a home which when you go out to sell will give you only the amount for area rate of your area. The amount paid as interest will not be accounted for during selling your flat, which we all have understood.
The prime lending rate increasing faster in few past months has led to increase in rates for offering loans by all financial loan lending institutions. Builders blame government rules for delay in approval of projects and approval of loans. But finally the home loans and home buying scenario is moving at a snails pace with only a few committed buyers and home loan borrowers.
People are waiting for rates to drop but there seems to be along wait without any hope. Rates will not drop any further and will only go on increasing except for a major inflation crises, and that will also affect the borrower. So when your homes will become cheaper due to inflation and you will be happy for getting homes and home loans at cheaper rates so will your finances become lower and again the same situation will go on!