Interest rated will be increased in next quarter as per experts. Will i cause panic in buyers and advantage for builders.? I think once rated increased RE again slow down. What u say guys
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  • High ROI is deterrent for buyers. Builders can only delay projects due to liquidity crunch.

    My take:- Wait till year end to aguge the scenario & till then keep scouting for apartments including resales.
  • This is again one more gimmick. One can't buy a flat with a loan taking into account the interest rates on a quarterly basis. A difference of 100 basis points doesn't have a huge impact on the EMI iutflow However, it is the direction which is more important. And it seems that the interest rates have bottomed now for sure. The direction is up for the next cycle and the pace of increase will depend upon inflation. A buyer should try to consider the average interest rates over the term of the loan as that will give a clear idea of what the buyer is required to pay. The range has been 8-13 % and about 10-10.5% will be the avg interest rates.

    News items like buy a home now as interest rates will rise next qtr shouldn't be paid any attention coz when the interest rates rise, banks will anyways pass them onto the customers (unless one is looking for the fixed rate offers for some 2-3 years as advertised by SBI and some othe banks). These offers are also a bit risky as one doesn't know the fine print. So, before taking a loan try to approximate the avg rates over the lifetime and go for it only when you are comfortable with the EMIs in the current env as well as when the rates are incereased.
  • If the rate of interest is going to increase, it is a sign of India is not affected by global recession, and Indian economy is improving. Which is strange, we just had two elections RS and LS, costing few k crores. We had drought also in some parts of the country. I am not expert economist but it is confusing.
  • Originally Posted by stambe
    If the rate of interest is going to increase, it is a sign of India is not affected by global recession

    Interest rates increased to suck-out excess liquidity from the mkt.
    At some point of time Fed Reserve will do the same. It is not always related to growth.
    Frankly, rising interest-rate will be one more reason not to buy a house, besides very high RE-rates.
  • Inflation CPI based is heading towards 13%+ & to control this inflation, ROI are being increased.

    Recession+High Inflation+ High ROI = Not so good time to buy RE at current prices.

    Only if RE rates fall, it makes sense to buy as focus should be on principle amount rather than ROI as RE rate is one time shot while ROI keep fluctuating.