interest-rates

Real Estate Sector Anxious on Hike in Home Loan Rates by RBI

by Paul Joseph May 5, 2011 Uncategorized

The hike in interest rates may have a waving effect on the real estate sector with construction cost moving up. This announcement by RBI will have a negative impact on real estate developers already spining under pressure from lack of capital from financial institutions. It comes as bad news even for those looking to buy a house as loans would become more costlier. Several banks like ICICI Bank, SBI and IDBI indicated that they would increase interest rates on loans in near future. Pradeep Jain, Chairman of Credai said, “The 50 BPs hike is harsh. This will deepen the cash crunch scenario which industry is facing right now. Taking out funds of the market cannot be the only solution to overcome inflation. The current pressure on prices is global in character and reflects supply side bottleneck. The solution is not monetary tightening. To me it is surprising and anti-housing policy.” Ashok Tyagi, group CFO, DLF said, “hiking interest rate has never been a tool to fight inflation. This could start impacting supply side investment.”

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Reforms Required in Real Estate Sector

by Paul Joseph February 28, 2011 Uncategorized

Reforms in the real estate sector is the need of the hour for tackling issues like high stamp duty which often results in otherwise honest people having to deal in black money, according to the Economic Survey 2010-11 tabled by Finance Minister Pranab Mukherjee in the Lok Sabha on Friday. “There is need for some fundamental reforms like tackling the high stamp duty issue which makes even honest citizens deal in black money,” it said. The annual report also called for dealing with issues like rising interest rates in the real estate sector, a big deterrent for people seeking home loans. A joint study by advisory firm Price Waterhouse Coopers and Urban Land Institute of India has cited India as one of the emerging markets for real estate sector in the Asia Pacific region. The study termed India as a semi-transparent market and ranked it 41 on a global transparency scoring scale. While it placed Mumbai, New Delhi and Bangalore among the top 10 prospective cities for real estate investment for the year 2011, Mumbai and New Delhi also captured the top two places in terms of city development prospects for the year 2011. The gross domestic product from the real estate sector including ownership of dwellings along with business services witnessed a growth of 7.5 percent in 2009-10.

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Interest Rate goes up for the Year Ahead

by Paul Joseph February 25, 2011

The recent past’s statement of increases in interest rates of India property appears essential but rather overwhelming for us. Because most of you will previously recognize the foreseeable is heading for occur this year with the extended overdue and scheduled rise in the Bank of England’s interest rates. This is a creepy vision for many households crossways the country. The price of fuel has increased. The cost of food has ascended in a sharp manner. VAT increased by 2.5% this time, to 20%. Once more sourcing all goods by way of VAT included leading to cost further. Clothes, heating our real estates , shopping in general, it’s every one growth. At the same time as this has been occurring our earnings have resided stagnant and in the attempts to put away job cuts a few employees have taken salary crashes with the optimistic protection that they will have a job still in a year’s occasion. So currently we must face an increment in the interest rates of properties. How is this heading for influence us? Initially we have been at the smallest rates or properties for decades; as a result all those by way of mortgages have been taking pleasure in this profit. When the government set up to raise the rate of interest, those acquiring by owing to low mortgage payments are heading for find it sturdy once more. If we increase to the previous rates of 2007, populace’s mortgage payments will be more or less three times superior then todays. These alone will origin a lot of more recovery in real estate properties in India, with capacity of people to afford their commitments for homes.

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Will 2011 be the year of truly affordable housing in India?

by Paul Joseph January 28, 2011 Uncategorized

I started 2011 with that same round of questions – What are the affordable housing prospects for 2011? On the face of it, consumers are an annoyed lot because this seems to be a year when housing will become affordable to nobody. Anybody who took loans to buy houses even upto 10 years ago are paying back at interest rates between 13-16 per cent. That seems grossly unfair to a lot of buyers who took loans with fixed tenures in mind and took loans at a particular interest rate. Today the interest rates are at pre-1998 levels when the home loan market was practically non-existent. So did we lure buyers with cheaper home loans and then have we as an industry left them in the lurch? If so we are ready now to do it to another lot of people who have been marginalised from the real estate industry – those who have been looking for a house in the Rs 5-15 lakh category. They may come from formal or informal sectors. Agencies like the Reserve Bank of India and the National Housing Bank are working hard to arrive at a formula for incentivising affordable property construction to the private sector. Yet, the flip side is whether we can hold interest rates to affordable levels in the longer term as this segment may not have the increased paying capacity.

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Fixed or floating is good

by Paul Joseph January 18, 2011 Uncategorized

Fixed loans are neither completely fixed nor completely floating floating loan. So before taking a home loan requires that all the conditions the bank may well have known. Home loan interest rates in respect of two of you have heard about. First, the floating rate and second, the fixed rate. Fixed rate means that the loan period you pay the same interest, while floating rate interest rate of interest per Amaceert curves – moves. The only advantage the new Kastemrs Amaceert the interest rate on low rates for Kastemrs not have taken floating rate decreased darted, but the company’s lack of danka interest loans to entice new customers only are beaten. So get all the benefit only to new Kastemrs. For older Kastemrs Taking bank loans on floating rate home loan interest rates for construction Kastemrs does not reduce, the old client re – choose option pricing. Under the interest rate on their loans reduced will be equal to the new Kastemrs. Yes, for sure they will pay the bank fees. Aadjstemento around the Case of floating rate Aadjstemento it also depends on the time. Suppose that a bank has been floating rate every six months Aadjste Kavugtleeerr or later it began to be adjusted on monthly basis. Kastemrs So every quarter or month to take advantage of floating rate conversion fee will have that the rest of the loan amount may be half or one per cent. Fixed also not Fix Like the floating rate are not actually floating, the more fixes are not the same as fixed rate, as many seem. Bank loan rate ever increase in agreement reserved the right to take her. Most bank loans by not paying for the entire period fixed for three years, fixed rate loans on offer. For three-year interest rate is stipulated. Then the interest rate per interest rate Amaceert Rivhaij is. What would be the right Suppose a person took a loan three years ago fixed rate. Six per cent fixed interest rate for three years he had make. After that happened, and now eight per cent Rivijan have had to pay interest. So feel bad that the Bank Fixed loans also have Rivhaij but also the fact that he then four per cent lower rates than floating rates, giving the Kastemrs be. Meanwhile, those who had taken loans on floating rate with the person, of any of them did not reduce interest rates in three years, while the Bank expressed its hope. He got a loan at seven per cent and today he is forced to pay 12 per cent interest. So whether it should assume that the fixed rate is right to take a loan? Experts say that the fixes are not Fixed loan but if you market ups – and downs absolutely no idea if the right Fixed loan will be less interest in the long run if you estimate that if floating select. Middle ground Fluctuations in market interest rates that people – can not imagine downs, they should avoid floating loan. If they want to avoid than fixed loans, the third way is for them. Part of the loan amount they can carry on fixed rate and floating interest rates will be applied to the remaining amount. Hybrid loans it says. Switch Over If you got a loan at fixed rate and floating rate is significantly lower than if you shifted from fixed floating rate options can also choose to be. For this you will have half a per cent to two per cent fee. Suppose you passed a year in total duration of the loan after it Aswichowara If the remaining amount to your loan principal Amaunt EMI decided to assume the remaining time will be. The prospect of rising interest rates in the near future are, you will not be prudent to be shifted from fixed to floating rate

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Special home loan offers from Syndicate Bank

by Paul Joseph August 24, 2010 Uncategorized

Syndicate Bank has come out with special offers in interest rates and service charges on fresh home loans. For loans up to Rs 20 lakh, the bank will charge a base rate of 8.25 per cent for the first two years, 8.75 per cent from the third year to the fifth year and 9 per cent from the sixth year onwards, subject to a maximum of 10 per cent, said a press release from the bank. However, for loans above Rs 20 lakh, the special rate would be 8.5 per cent for the first two years, 9 per cent from the third year to the fifth year, and 9.5 per cent from the sixth year onwards, subject to a maximum of 10.5 per cent. The bank would also offer special discounts in processing and documentation charges. For home loan borrowers, service charges would be Rs 900 a lakh with a cap of Rs 15,000 for loans up to Rs 50 lakh and for loans above Rs 50 lakh, a flat Rs 25,000 would be charged. The offer is valid up to March 31, 2011, said the release. Source: http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=9876&cat_id=2 Filed under: Home loans Tagged: Home loan interest rates , Syndicate Bank

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Home and car loans become expensive

by Paul Joseph August 23, 2010 Uncategorized

With the leading players in the banking sector viz State Bank of India and ICICI Bank increasing the Benchmark Prime Lending Rates (BPLR), both the home and car loans have become costlier. ICICI Bank has hiked its BPLR and floating reference rate (FRR) by 50 basis points. FRR is applicable to consumer loans such as home loans. SBI has also hiked its BPLR by 50 basis points raising the rate to 12.25%. With rise in the benchmark fixed for loans, interest rates on loans are also ready to go up thus increasing the EMI payable by the borrower. The hike in EMI will be based on the rate levied on the loan and also the duration which will differ from bank to bank. Source: http://www.bankbazaar.com/guide/home-and-car-loans-become-expensive/22747/ Filed under: Home loans Tagged: Home loans , ICCI Bank , SBI Bank

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Housing finance companies not to hike home loan rates

by Paul Joseph August 21, 2010 Uncategorized

Interest rates may not go up for home loans provided by housing finance companies (HFCs), although in the present scenario the banks have hiked interest rates. These HFCs are controlled by National Housing Bank (NHB), which is not eager to hike the rates shortly. RV Verma, executive director, NHB said, “There is no real rush on the part of HFCs to raise rates. It will depend on their cost of funds”. Verma said, the HFCs would like to wait and watch the steps undertaken by banks on base rate before they decide on increasing the lending rates. He said, “Over 50 per cent of HFC funding comes from banks. If banks raise their base rates when they conduct their next round of review, the cost of funds of HFCs will be impacted. That will have a bearing on the decision of most HFCs”. Verma says that in the next review the banks will increase the base rates of banks following the present trend of deposit rate increase they have undertaken which is definitely going to hike their cost of funds. Benchmark prime lending rates (BPLR) have been increased by various lenders just recently. They include State Bank of India, ICICI Bank, Punjab National Bank, Union Bank and IDBI Bank. RR Nair, director and CEO of LIC Housing Finance said, “We do not adopt the policy of changing interest rates depending on market movement. For our existing customers, we review our rates once at the beginning of each quarter.” He added, “We have to take a view on rates on new loans”. Source: http://www.bankbazaar.com/guide/housing-finance-companies-not-to-hike-home-loan-rates/22643/ Filed under: Home loans Tagged: Home Laon Interest Rates

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Chennai property boom

by Paul Joseph July 20, 2010

Creating the accurate intuition towards investment is an important part of winning investment. Principals and workforce should not ignore this most important fact that Chennai property run rapidly towards grow. Investor impressions are crafted from numerous phases of properties dealings with them. We turn towards Chennai property; we discover that property market in Chennai in actual fact booming condition with enormous investments being finished into it and in the midst of countless proficient actions turning up just about it. The Chennai real estate dealers, in the at hand situation, has found crucial tasks to occupy yourself in the business concerning selling, buying or renting of housing addresses in the city. The facilities offered by property agents and other professionals are, indeed, abridging our admittance to a dream home of our personal. Moreover, the stumpy interest rates and stirring home financing opportunities presented by the Home Loans Companies have prepared possessing homes in Chennai probable for all still in luxurious regions similar to MRC Nagar, Adyar and Royapettah. On account of the incursion of corporate professionals, abodes on lease are accessible at gung ho rates. Serviced Apartments in Chennai can be acquired by rewarding correct Mortgage Loan. www.investinnest.com offers Chennai property Guide and permits us to select our house in Chennai real estate devoid of a great deal pesters. An online directory of real estate phases of Chennai envelops ample scale of alternatives of this property boom in Chennai

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Rupeetalk.com explains how the base rate implementation from July 1, 2010 will help achieve transparency in the home loan process.

by Paul Joseph June 24, 2010

Mumbai, Maharashtra — (SBWIRE) — 06/21/2010 — Home loans in India are inevitable when buying new houses. Home loans till date have realised the dream of many-many individuals who wished to own their house. Thus home loans are boon for potential home buyers. However, like roses are accompanied with thorns, home loans are accompanied with interest rate which has a potential to rise steeply overnight thus putting enormous pressure on loan borrowers. The pressure is exerted in the form of increased monthly EMIs or increased tenure or at times both. People who have opted for floating rate of interest has seen steep rise in it over the years. Also the interest rate offered to new borrowers is much lower compared to existing ones. People with high income and excellent credit history are offered loans at very competitive interest rates due to high bargaining power. All this and several other queries related to home loan interest rates are set to be resolved with the introduction of base rate. Base rate is all set to replace prime lending rate (PLR) which was till now benchmark for lenders offering loans above or below it. The base rate is also expected to bring transparency in the home loan process replacing the PLR which was supposed to be the actual reason for interest rate fluctuations and differentiation. Rupeetalk.com contains articles, guides, tips, FAQs on home loan which makes home loan as a process understandable to the user and the different intricacies attached to it. The website also contains glossary which converts difficult home loan terms into simple language, explaining the same to the users. Users can also use the ‘EMI Calculator’ to calculate monthly EMIs or ‘Prepayment Calculator’ to calculate prepayment advantages. Till date home loans could be offered above or below the PLR. However with the introduction of base rate, lenders could lend at either base rate or above it but not below it. Interest rates will be related directly to base rate. People who have opted for PLR have the option to change to base rate at the time of renewal of the contract. Shifting to base rate is allowed even before the renewal of the contract without attracting any penalty charges. To know more information on Rupeetalk and Home Loans feel free to visit : http://www.rupeetalk.com/home-loan-india About Rupeetalk.com Rupeetalk India is a finance dominated website, offering various financial products and solutions to consumers. The website includes array of financial products like home loan, personal loan, car loan, credit cards, insurance, stocks, fixed deposits, etc. The website contains useful and relevant information on these loans and insurance products which help users compare them and accordingly decide on the product of their choice. Source : http://www.sbwire.com/press-releases/sbwire-47805.htm Filed under: Home loans Tagged: Home loans

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