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16 July 2012

Fresh New Developments in Home Buying and Home Loan Industry

There is a gradual change and slow movement observed in the home industry and home loans market. After the long silence it is a welcome change for the builders and the home loan finance industry. As we move in any direction east, west, south or north, Mumbai or the outskirts, everywhere we see constructions going on and even though here was a lull in the market since the past few years due to Government and Reserve Bank rules and regulations there is a welcomign change being seen now.
As the government too has reduced the burdens loaded on the builders so also the home loan industry is offering new low price quotations and offers for the buyers and home loan borrowers.With reduced interest rates, and many warding off totally the prepayment penalty with new latest amenities offered at the same price per square foot the customers are preparing to make their move. Still necessity, an own  place to stay,  is the only decision maker and where customers are concerned. The investment buyers are the same , they need not worry about interest rates or the high rates of homes as they have the excess money and they need to invest! and this movement of clientele though minimalistic has continued over the years.
With the DNA and the Times quoting alarming figures of vacant flats it is sure something to think about with the heavy construction going on in full swing. Why are the builders taking huge loans and continuing to produce houses which are lying vacant, the meaning of affordable has changed over the years, what was 8 to 10 lakh affordable housing has now shifted to minimum 25 to 30 lakhs in the affordable range, that too on the outskirts of the city!
As we enquire about rates of area per square foot , yes there is a correction in rates of houses as compared to few years back. The builders better correct off now or fear of losing the customer to other housing complexes who are willing to offer concessions and also bargain in the total rates of flats. With the home loan departments and housing finance institutions there is a welcoming change seen by many financing companies offering low rate of interest loans and making way for new borrowers by relaxing many rules. The fear of penalty for foreclosure of a home loan was an important aspect for any borrower and the swaying off of this penalty fee has brought in new customers as borrowers in the market. This option allows the borrowers to take any loan on car, flat, land or renovation and redevelopment and repay it as soon as they have finance available. This way they save off on the money paid as interest over the full home loan tenure. This rule must be implemented universally by all housing finance companies. Home loan transfers will reduce dramatically by this move.
People still believe in the sanctity of having an own home and struggle for the same and relaxed home rates and home loan rates would be a sure welcome move by the Government and the Housing finance companies.
All in all it feels nice to see people shifting and happy in their new homes, after the long lull of empty spaces, constructions of four walls and no humans around!,  we hope to see many satisfied and happy people in their own homes soon!


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  2. Thanks manndyharris for the comment.


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