India-Real-Estate.org

After the super response to Tata Nano, now the Tata group is coming up with Nano homes under the name Shubh Griha, priced between Rs 3.9 lakh and Rs 6.7 lakh.

When and Where? The first township comprising one bedroom-kitchen flats, to be built by Tata Housing Development Company (THDC) will be in the Mumbai suburb Boisar, in Thane district. This housing project is conveniently located within 5 minutes of Boisar railway station and MIDC. Here’s the location map.

This model will be replicated across several metros, tier II and III cities in the country. To learn more, please visit their site: http://www.shubhgriha.com

Various Players in the Low Cost Housing Market: Tata Housing Development Company joins other developers like Puravankara, Omaxe and Housing Development & Infrastructure Ltd (HDIL) that have moved to the affordable housing segment, because that still represents a big market with unmet need. India faces a shortage of 24.7 million dwelling units, with three-fourths of this deficit being in the middle and low-income groups.

The Trend is strong: Others entrepreneurs including Mphasis founder Jaithirth Rao, NGO Janaagraha founder Ramesh Ramanathan and Bangalore based CSC Constructions are also said to be interested into entering this segment and are drawing up their housing projects.

Hi Folks, lots of questions from our visitors have been coming on Home Loans since Banks started reducing home loan rates. Please see the previous posts for our views on what factors to consider when home loan interest is reduced (and if you are on a fixed interest rate home loan plan).

Here’s a question from Tushar Roy: If my monthly take home pay is Rs.12,000, then how much Home Loan amount can I get when it will be for 15 years?

Answer: Please use this Home Loan EMI calculator

http://wealth.moneycontrol.com/emi_calculater.php

You should take EMIs on the lower side of your affordable income because if situation turns difficult with job loss or business loss, then you can still manage to clear the EMIs.

The major news from last week for home loans and residential property is this: State Bank of India (SBI) has frozen interest rates at 8% for a year for new home loan customers. Now SBI has one of the most (if not “the most”) attractive home loan interest rate in India. And SBI is SBI…dependable PSU bank that will not go anywhere till India is intact.

So we are seeing many people getting ready to move away from ICICI Home loans and HDFC Home loans to SBI.  Some people have reported that ICICI is charging 11% to 15% even after RBI’s reduction of rates. So in this case, that decision to move to SBI makes good logic, if ICICI or HDFC are not willing to match the 8% interest rate. You should not pay 3-5% more interest than the lowest rate in the market. Read more »

India’s largest housing finance company HDFC has reduced home loan rates by as much as 150 basis points (ie 1.5%).

So now, the floating rate for home loans has come down from 11.25% to 9.75%, which is the same level as in 2006.

Real estate advisers say the maximum benefit from this rate cut will be for those people looking for home loans between Rs 20 to Rs 30 lakh.

For home loans below Rs 20 lakh, the reduction is 50 basis points as the earlier rate was 10.25%.

This home loan rate cut by HDFC comes on the back of two successive 50 basis point cuts in deposit rates in recent weeks.

This development is also likely to help the troubled real estate sector by getting them some much needed liquidity.