pcpune

There is going to be a lot of changes on how the home loan scenarios work after July 2010 :

1. Base rate rule will come into affect hence loans would become close to 10%-12% for most banks for new and old customers, teaser and easy home loans are a passe.
2. Stimulas withdrawal by second quarter means Real Estate will have to pay back all the debt, and they cannot restructure the loans again
3. Inflation set to increase and RBI will tighten the interest rates.
4. Rupee rise against the dollar will lead to RBI buying dollars, which means the liquidity in the current market is going to be absorbed.
5. IT Comapnies will look to consolidate as once the rupee rises above 43, it would surely affect their bottomlines. Hiring has already become cautious after the flurry in last 1-2 months.

Overall the situation is more like a bubble, waiting to blow up, should happen by the year end. Next March , we are having the New Tax Code , means all home loan interest rates will save NO tax, HRA will.

Now, its up to the buyers to wait for the situation to pan out, before making this once in a life time decision, however, all I can say is, IT IS THE WORST TIME TO BUY in RE.

MY WORDS - INVEST IN "(SONA)", SPECIFICALLY "(SONA)" ETFS!!! ( is being automatically edited,hence using "Sona")

frugality

So after July expect 50 percent straight price drop ...

Aundh 4500/- psf new rates 2250/- psf

Wakad 3200 /- psf new rate 1650/- psf

Khthrud 5000/- psf new rates 2500/- psf

Viman Nagar now at 4000/- psf will be available in 2000/- psf


Now forum members will start saying this is Rubbish .... ??

pcpune

That is being too optimistic, I believe the prices would correct but in a span of 2-3 years as the builders/developers are still not under the crunch. ALso, the over supply will pan out once all those properties are ready and the purchasers would want to sell off / rent their properties.

It is best to wait until - you are financially ready and people around you are saying this is the WORST TIME TO SELL (since the prices have crashed), with the pun intended !!!

ani_meher

Me first! This is rubbish ;p. 50% drop straight is not possible unless some quake hits Pune. Many buyers are ready to purchase even at 10% less price, and at 25%, there will be huge inflow, so 50% fall and that too so sudden is daydreaming.

I am surprised at myself to say this, because I too am betting on a fall soon, but not so much so soon!

hitmady

RE will fall gradually. The problem is unlike stocks one can not average in RE .
So it would be better to wait for 2/3 years before committing to get right-price.

hporwal

RE purchase is like 1 stock worth 40 lac and above.

very difficult to liquidate fast in case u need money.

anyway stock market is much better avenue for investment (provided required caution is taken and no speculation based on tips )

hporwal

correction of that nature would be difficult if not impossible.

anyway just check the offer
price of Mont Vert Belrose

echaos

hi piyush
from where you got news that in new tax code "home loan interest rates will save NO tax, HRA will"

i thought in DTC both intrest of home loan and HRA benifit are removed

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echaos

pcpune

This is still being discussed and many people have had their own views on this, but the interest on home loan has to go since the deductions are from the government kitty.The HRA deductions is from the employer and there have been various talks over the HRA deductions, and this website says it will be reduced from 30% to 20%.
http://www.pankajbatra.com/india/new...tc-highlights/

Since, HRA is deducted and not taxed from salary income in most countries by the employer where Direct Tax Code is applicable,I believe the same will be applicable in India.

However, we have to wait until this comes into effect, all I am saying is, let the situation pan out in the next couple years before you buy.

kothrud_pune

So another prediction of Diwali fall.

Can you search for Diwali thread,everything is already discussed.You will get all answers.