Do you think is there any impact on the property prices due to increasing interest rate? I have heard that there will be small correction in property rates due to increasing rates.
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  • Correction is desperately needed...current rates are insane....if one goes for a property worth 50 to 60 lakhs with 45 lakh Loan he will end up paying almost 1.04 cr in 20 yrs if he doesnt repay soon...i.e. in first 5 to 10 yrs.

    god knows whats happenning out these....

    can u imagine i had gone to review a 1 BHK flar near hinjewadi flyover at wakad, the builder said these :-

    4 to5 1 BHK availiable
    550 carpet area
    650 salaeable area...
    no reserved parking for 4 wheeler
    no reserved parking for 2 wheeler
    you need to park in common areas if availiable...

    and the finale...all inclusive cost 34 lacs
    for 1 BHK with no parking....what a mess...
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  • You are exactly true man. The prices have become unimaginable.
    And especially in the area near Hinjewadi.. its extreme craziness. Builders rise the price w/o any concern about booking or not. And they quote it so confidently as if they don't care whether you buy or not.. Total adamant attitude.
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  • Property rates in pune - Impact of Increasing interest rates

    I have heard that the property sale goes down in last 3-4 month because of Increasing interest rates as for the loan buyer need to pay more EMI. This may be result in to slight correction in property rates as builders need to attract investors in any case. What’s your opinion?
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  • HDFC, Bank Of India too have increased home loan interest rates by 0.25%.
    The home loan interest rates have increased by almost 27% in past one year !! Even the builders are facing cash crunch due to poor sales, high inventory & rise in interest rates for them as well. Severe reduction in RE rates is expected in coming months.

    In Mumbai, Indiabulls & Lodha are already offering discounts. Another builder is selling 15% below market rates (forgot his name but he is Parsi).
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  • Originally Posted by realacres
    HDFC, Bank Of India too have increased home loan interest rates by 0.25%.
    The home loan interest rates have increased by almost 27% in past one year !! Even the builders are facing cash crunch due to poor sales, high inventory & rise in interest rates for them as well. Severe reduction in RE rates is expected in coming months.

    In Mumbai, Indiabulls & Lodha are already offering discounts. Another builder is selling 15% below market rates (forgot his name but he is Parsi).

    just read somewhere that, those who have taken homeloan at teaser rate with a period of 240 months or 20 years, once the teaser rates offer is over the total no of emi should be become 400. so which 33.33 years.who would like to pay the loan for that long period.
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  • Originally Posted by mamol
    just read somewhere that, those who have taken homeloan at teaser rate with a period of 240 months or 20 years, once the teaser rates offer is over the total no of emi should be become 400. so which 33.33 years.who would like to pay the loan for that long period.

    Yes, the loan repayment won't end even if one becomes a senior citizen.
    Now, who will pay loan for that long period ?? Well, there are several souls who are born to work for the builders........builder ke liye jawaani nyochawar kardi aur budhapa kab aya, maalum bhi nahi chala. :D. Finally, they will retire with a flat & hope some redevelopment takes place so that their flat value appreciates even further :D.
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  • Originally Posted by realacres
    HDFC, Bank Of India too have increased home loan interest rates by 0.25%.
    The home loan interest rates have increased by almost 27% in past one year !! Even the builders are facing cash crunch due to poor sales, high inventory & rise in interest rates for them as well. Severe reduction in RE rates is expected in coming months.

    In Mumbai, Indiabulls & Lodha are already offering discounts. Another builder is selling 15% below market rates (forgot his name but he is Parsi).


    Just wanted to know for which project Lodha is offering discounts ? - Super Luxury ones OR projects dombivali etc ?
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  • Originally Posted by realacres
    Yes, the loan repayment won't end even if one becomes a senior citizen.
    Now, who will pay loan for that long period ?? Well, there are several souls who are born to work for the builders........builder ke liye jawaani nyochawar kardi aur budhapa kab aya, maalum bhi nahi chala. :D. Finally, they will retire with a flat & hope some redevelopment takes place so that their flat value appreciates even further :D.


    Ha ha. Too good real.
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  • With the interest rate rise almost a year back (and more in between) RE rates in some region have increased by over 33% in just on year.

    and 900 mark crossed :)
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  • Originally Posted by compuwalah
    With the interest rate rise almost a year back (and more in between) RE rates in some region have increased by over 33% in just on year.

    and 900 mark crossed :)


    fingure cross... this is going to impact people who had purchased in desperation in last 1 year or so. The time will come when no one will be able to afford this insane prices.. those who have bought in last 1 or 2 years are day dreaming of the virtual gain.. once they go in market for sale... there are hardly people who want to pay them that price or able to afford but don't see VFM.

    I have seen people cancelling their selling plan and investors are finding it difficult to sell for their dream price. ;)

    Anyway this debate will continue and only time will tell who is right. I hope you are reading news about 30/40% drop in china property prices in urban area. No Asset class has escaped from crash and RE is no different. So for indian RE has not seen crash.. hope it will see in near future ;)

    Property Prices Collapse in China. Is This a Crash? - Forbes
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  • i agree india RE needs correction and will have it soon ... but i am not sure if we can compare india RE with china ... the RE mkt in india is booming becoz of shortage of residential land in india .. population density is growing higher each day ... in fact agriculture lands are being consumed for housing projects........china or US for tat matter do not suffer this problem ... they have engh spare land
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  • Originally Posted by raptorminty
    Correction is desperately needed...current rates are insane....if one goes for a property worth 50 to 60 lakhs with 45 lakh Loan he will end up paying almost 1.04 cr in 20 yrs if he doesnt repay soon...i.e. in first 5 to 10 yrs.

    god knows whats happenning out these....

    can u imagine i had gone to review a 1 BHK flar near hinjewadi flyover at wakad, the builder said these :-

    4 to5 1 BHK availiable
    550 carpet area
    650 salaeable area...
    no reserved parking for 4 wheeler
    no reserved parking for 2 wheeler
    you need to park in common areas if availiable...

    and the finale...all inclusive cost 34 lacs
    for 1 BHK with no parking....what a mess...


    Mention name of project, so people will be aware and stay away from visiting.
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